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Test Bank Guide to Nursing Management and Leadership 8th Edition
For Order This And Any Other Test
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CHAPTER 1: COMMUNICATIONS
Mosby items and derived items © 2009 by Mosby, Inc., an affiliate of Elsevier Inc. Some material was previously published.
MULTIPLE CHOICE
1. The nurse manager instructed the nursing assistant to “rinse her hands after touching the patient.” The nurse manager meant for the nursing assistant to use universal precautions. Which part of the communication process was compromised?
a.
Ideation
b.
Encoding
c.
Transmission
d.
Receiving
ANS: C
For the receiver to receive the message as transmitted, interference such as inappropriate directions must be overcome.
REF: 4
2. The client complains to the nurse about the noise at the nurse’s station at night. The nurse’s best response is:
a.
“I appreciate your reporting this to me.”
b.
“Thank you for contributing this information.”
c.
“What do you want me to do about this?”
d.
“Are you saying that you are unable to rest at night because of the noise?”
ANS: D
Clarification is used when one is not sure what the other person is saying.
REF: 5
3. During a unit meeting, the nurse manager discusses ways to deal with a hostile patient. The staff nurse suggests that more time be spent with the patient. How does the nurse manager enhance the value of the staff nurse’s suggestion?
a.
Identify the staff nurse’s merits
b.
Dismiss what the staff nurse said
c.
Enhance the value of the unit
d.
Accept others’ suggestions without regard to the staff nurse’s suggestion
ANS: A
Enhancing value differs from criticism. A merit may be a part of an idea, a good intention, an important issue that was addressed, or part of an action. One can ensure understanding and value by asking people about the value of their ideas.
REF: 5
4. The nurse educator begins the presentation on group process by asking the participants to sit in a circle. The nurse educator’s use of this physical arrangement relates to which aspect of communication?
a.
Strategy
b.
Structure
c.
Support
d.
Style
ANS: D
Style for oral communications involves planning to engage the audience through the use of eye contact, physical space, and body movement.
REF: 7
5. The school nurse wants to use a PowerPoint presentation to educate adolescents on sexually transmitted diseases. This method of presentation relates to which aspect of communication?
a.
Supplement
b.
Style
c.
Structure
d.
Strategy
ANS: C
Structure begins with a forecast of the main ideas to capture the audience’s attention and gives the audience an outline of the message. This can be done with PowerPoint presentations.
REF: 7
6. For the nurse educator to prepare PowerPoint presentations, the nurse must be able to use which of the following?
a.
Palm Pilot
b.
Presentation software
c.
Spreadsheet software
d.
Handheld computers
ANS: B
Presentation software creates visual displays such as overhead projections and slides for oral presentations.
REF: 7
7. The nurse manager of a medical unit wants to assess how many clients develop urinary tract infections on the unit. The best way to collect and catalog this information is to use what type of software?
a.
Calendar and scheduling software
b.
Word-processing software
c.
Presentation software
d.
Database software
ANS: D
Database software collects and catalogs information so that lots of well-organized data can be located and displayed.
REF: 7
8. A rural health nurse is evaluating the use of a telehealth system for the rural health clinic. Using this type of information technology can violate a client’s rights when personnel:
a.
Disseminate client information to a local physician
b.
Disseminate client information to nearby hospitals
c.
Disseminate the client's password for easier access
d.
Disseminate client information to third-party reimbursers
ANS: C
Breaches of confidentiality may involve unauthorized use of another’s password.
REF: 8
9. The chief executive officer (CEO) of the institution asked the nurse manager to compile data on how many clients on the unit were considered to have a status of “critical.” Using upward communication, the nurse manager:
a.
Reviewed the charts and reported the data to the CEO
b.
Called a meeting of team leaders to discuss the status of clients
c.
Called the business office for a list of medical diagnoses
d.
Assessed each client on the floor to find those whose status was “critical”
ANS: B
Upward communication provides a means for motivating and satisfying personnel by allowing employee input. The manager summarizes information and passes it upward to the next level for use in decision-making.
REF: 10
10. A group of nursing assistants approached the nurse manager to discuss pay raises on another unit. This is a form of:
a.
Upward communication
b.
Lateral communication
c.
Diagonal communication
d.
Informal communication
ANS: D
Informal communication spreads at an increasing rate as individuals from clusters inform other small groups of people who work nearby or with whom they have contact.
REF: 11
11. The staff nurse was providing discharge instructions to the client. After the nurse discussed the importance of making an appointment the following week for a follow-up visit with the physician, the client said, “I wonder if I can go visit my daughter who lives out of town next week.” The nurse determined that the client:
a.
Used selective perception to hear what she wanted to hear
b.
Decided not to see the physician for a follow-up
c.
Had poor cognitive abilities
d.
Mistrusted the nurse's instructions
ANS: A
People unconsciously use selective perception to hear what they want to hear in terms of their biases.
REF: 12
12. A staff nurse was approached by a nursing assistant who wanted to give a report about a client’s condition. The nurse said, “I don't have time to listen right now.” This is an example of:
a.
Upward communication
b.
Barrier to communication
c.
Downward communication
d.
Grapevine communication
ANS: B
Time pressures, used as an excuse for not listening, are a barrier to communication.
REF: 13
13. Two nurses, one male and one female, were discussing client assignments. Which of the following best illustrates gender differences between these two colleagues?
a.
Male: “I think the client needs to have a nursing assistant assigned on a one-to-one basis.”
Female: “I agree with you.”
b.
Male: “I think the client is experiencing a loss related to the fact that he is no longer the breadwinner of the family.”
Female: “I think the client is grieving.”
c.
Male: “I wonder if the client has expressed to his family his feelings of loss.”
Female: “I think he is dealing with his feelings.”
d.
Male: “I plan to care for the client as part of my assignment—he will confide in me because I am a male.”
Female: “I am just as competent to care for the client as you are.”
ANS: D
Personal versus contextual style is one form of gender difference in communication, with males using the role-centered contextual style, and females using the personal style stressing equality.
REF: 13
14. Which of the following cultures views eye contact as indicating trustworthiness?
a.
Hispanic Americans
b.
Asian Americans
c.
White Americans of European origin
d.
Native Americans
ANS: C
White Americans of European origin tend to view eye contact as indicating trustworthiness.
REF: 14
15. In assessment of cross-cultural communication, which nonverbal behavior is the most important?
a.
Placement of hands
b.
Facial expression
c.
Use of words
d.
Eye contact
ANS: B
The face is considered the organ of emotion. It is a source of nonverbal communication.
REF: 14
16. A nurse educator is developing a presentation for a group of senior citizens. The nurse has 10 typewritten pages of notes and 20 PowerPoint slides for a 30-minute presentation. Which method of communication will enhance learning?
a.
Continue lecturing for the 30 minutes
b.
Reduce the number of PowerPoint slides and use shorter sentences if possible
c.
Cover topics related to careers for the senior citizen
d.
Provide copies of notes to the senior citizens
ANS: B
Communications should be well organized and expressed in simple words, a clear style, and the shortest sentences possible.
REF: 16
17. The best response for the nurse manager to use with an angry employee is:
a.
“What is wrong?”
b.
“You are really inappropriate with your anger.”
c.
“If you would like to talk, we can go into my office.”
d.
“I'm not sure why you are angry, but don’t take it out on me.”
ANS: C
One must consider the setting in which one communicates and time one’s message for maximal impact. Listening, an active process that requires conscious attention, is critical to good communication.
REF: 19
18. In a unit meeting, a staff nurse exhibits what is commonly known as an adult tantrum. The nurse manager’s best response is to:
a.
Call the staff nurse by name
b.
Discourage the staff nurse from talking
c.
Allow the staff nurse to finish the outburst
d.
Ask the staff nurse open-ended questions
ANS: C
Adult tantrums are the grown-up version of childhood tantrums that are a defense mechanism to cope with feelings of fear, helplessness, and frustration. The exploder should be given time to finish the tantrum and regain self-control.
REF: 21
19. During a performance evaluation, the staff nurse tells the nurse manager, “I'm not the only one who takes a long lunch break, so I shouldn't be penalized for doing that.” The nurse manager understands that the staff nurse’s behavior is that of:
a.
An exploder
b.
A sniper
c.
An unresponsive person
d.
A complainer
ANS: D
Complainers may dump on one directly or may complain about other “awful” people. Complaining helps people appear blameless and innocent, at least to themselves.
REF: 19
20. Which of the following is indicative of trashing other nurses?
a.
Nurses working together as a team
b.
Nurses committing themselves to actions that they do not complete
c.
Nurses identifying with their male colleagues
d.
Nurses talking about other nurses behind their backs
ANS: D
Trashing is a form of character assassination that sets women against one another.
REF: 21
21. A staff nurse exploded angrily at the charge nurse and said, “I don't have time to turn the client because I have to catch up on my charting.” The charge nurse replied, “I want to see you in my office right now!” This is an example of what type of transactional pattern?
a.
Adult to adult
b.
Child to child
c.
Parent to parent
d.
Parent to child
ANS: D
In parent-to-child interactions one person takes a psychologically superior position to the other.
REF: 22
22. A staff nurse left the unit in anger. She told the nurse manager, “I would have gotten that promotion if it weren’t for you.” What type of game was the staff nurse playing?
a.
Blame others
b.
Attack
c.
Self-pity
d.
The corner
ANS: A
“If it weren't for you” is the blaming game in which people who feel inadequate blame others for their inability to achieve.
REF: 24
23. The nurse manager was commenting to her staff about the overtime hours she was putting in because of a shortage of nurses. This is an example of what type of game?
a.
Blame others
b.
“Poor me”
c.
The corner
d.
The bear trapper
ANS: B
Harried executives work hard to maintain a sense of being OK.
REF: 25
24. Which of the following people have a life position that indicates “I'm OK, you're not OK”?
a.
People who assume that they are less competent and less influential than others
b.
People who feel OK about themselves and others
c.
People who supervise others closely because they feel others cannot be trusted
d.
People who lack confidence in themselves and trust others
ANS: C
People with the “I'm OK, you're not OK” life position do not believe they can rely on anyone but themselves.
REF: 26
25. A staff nurse complained to the nurse manager that she was too tired to continue a schedule that required her to double back to work. The nurse manager responded, “I understand that you get tired when you double back.” The nurse manager was demonstrating which assertive technique?
a.
Broken record
b.
Fogging
c.
Negative assertion
d.
Negative inquiry
ANS: B
Fogging is agreeing with the truth, agreeing in principle, or agreeing with the odds rather than denying the criticism, getting defensive, or counterattacking with criticism.
REF: 28
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Text
Test Bank Guide to Networking Essentials 6th Edition
For Order This And Any Other Test
Banks And Solutions Manuals, Course,
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Contact us At: [email protected]
Introduction to Computer Networks
Chapter 1
TRUE/FALSE
1. File and printer sharing for Microsoft networks is an example of a network protocol.
ANS: F PTS: 1 REF: Page 16
2. A network that has locations in different countries is considered a WAN.
ANS: T PTS: 1 REF: Page 28
3. In order to find out your MAC address, you should open a command prompt and type ipconfig /all.
ANS: T PTS: 1 REF: Page 23
4. What makes a computer a “server” is the fact that it has a server operating system installed on it.
ANS: T PTS: 1 REF: Page 33
5. Each component of a computer is designed to perform only one specific task—either input, processing, or output.
ANS: F PTS: 1 REF: Page 2
MULTIPLE CHOICE
1. The XYZ company has two offices, one downtown, and a brand new office in the newer section of town. To connect the two offices, they will need a dedicated line, probably leased from the local phone company. What type of network will they be implementing to connect their two offices?
a.
LAN
b.
internetwork
c.
MAN
d.
SAN
ANS: C PTS: 1 REF: Page 28
2. Airwaves are an example of what type of network component?
a.
Network Interface Card
b.
network medium
c.
interconnecting device
d.
network protocol
ANS: B PTS: 1 REF: Page 15
3. Windows 7, Windows Vista, and Windows XP are all examples of which of the following?
a.
network protocols
b.
client operating systems
c.
server software
d.
server operating systems
ANS: B PTS: 1 REF: Page 33
4. What is one of the disadvantages of a peer-to-peer network compared to a server-based network?
a.
more difficult to setup and install
b.
more expensive
c.
higher administration costs
d.
limited security
ANS: D PTS: 1 REF: Page 35
5. What command would you issue from a command prompt to see a listing of the computers in your workgroup?
a.
arp -a
b.
net view
c.
ipconfig /all
d.
ping
ANS: B PTS: 1 REF: Page 39
6. What is one of the disadvantages of a server-based network compared to a peer-to-peer network?
a.
additional costs
b.
decentralized data access
c.
difficult to expand
d.
less secure
ANS: A PTS: 1 REF: Page 37
7. For any device to communicate with the computer, either through input or output, it must have what special software installed?
a.
client
b.
network interface
c.
network protocol
d.
device driver
ANS: D PTS: 1 REF: Page 13
8. When data is being prepared for transmission onto the network, it is broken into small pieces and a header and trailer are added to each piece to help identify it. What is this process called?
a.
multitasking
b.
verification
c.
encapsulation
d.
application
ANS: C PTS: 1 REF: Page 32
9. Every NIC is embedded with a unique address that consists of a 12-digit hexadecimal value. What is this address called?
a.
IP address
b.
subnet mask
c.
MAC address
d.
default gateway
ANS: C PTS: 1 REF: Page 23
10. What was the primary reason to create a network?
a.
share resources
b.
communicate with e-mail
c.
share information
d.
all of the above
ANS: D PTS: 1 REF: Page 14
11. You are building a gaming computer and you want to install a dedicated graphics card that has a fast GPU and 1GB of memory onboard. You need to make sure that you have the right connector available on your motherboard. What type of connector would be appropriate?
a.
PCI
b.
SATA
c.
PCI-Express
d.
IDE
ANS: C PTS: 1 REF: Page 6
12. You want a fast CPU for the new computer you are building and your motherboard only has one CPU socket. To increase the processing power, you need a CPU that provides more than one processor. What is this CPU called?
a.
multicore
b.
multiple
c.
multifaceted
d.
multilink
ANS: A PTS: 1 REF: Pages 3-4
13. Which component, located on the motherboard, carries out all the instructions provided by computer programs?
a.
hard drive
b.
RAM
c.
NIC
d.
CPU
ANS: D PTS: 1 REF: Page 3
14. You are the network administrator for a company and you want to separate the traffic from the accounting department from the rest of the network. However, the accounting department still needs to have access to other network resources. What type of network do you need to implement?
a.
WPAN
b.
internetwork
c.
WAN
d.
wireless network
ANS: B PTS: 1 REF: Page 26
15. Which part of the network communication process is responsible for sending and receiving data to and from the network media?
a.
network software
b.
network protocol
c.
user application
d.
NIC driver
ANS: D PTS: 1 REF: Page 17
16. You’re the network administrator for a company located in Arizona that has just opened an office in Texas. You need to make sure that the two locations can communicate. What type of network are you implementing?
a.
MAN
b.
WAN
c.
internetwork
d.
extended LAN
ANS: B PTS: 1 REF: Page 28
17. You have just started a new business. You need to have three to four workstations available for your employees who simply need to share some files and a printer, but you don’t have a large budget. Security is not a major concern, but costs are. What type of network would be the most appropriate for your situation?
a.
internetwork
b.
domain
c.
peer-to-peer network
d.
server-based network
ANS: C PTS: 1 REF: Pages 34-36
MULTIPLE RESPONSE
1. Which of the following are examples of output devices? (Choose all that apply.)
a.
monitor
b.
printer
c.
keyboard
d.
hard disk
e.
CPU
ANS: A, B, D PTS: 1 REF: Page 4
2. Which of the following are examples of input devices? (Choose all that apply.)
a.
mouse
b.
monitor
c.
DVD
d.
scanner
e.
printer
ANS: A, C, D PTS: 1 REF: Page 3
COMPLETION
1. The three basic functions of a computer are input, ____________, and output.
ANS: processing
PTS: 1 REF: Page 2
2. ____________ components include devices such as printers, disk drives, network cards, and monitors.
ANS: Output
PTS: 1 REF: Page 4
3. A ____________ is a packet that has been encapsulated with the source and destination MAC addresses in the header and an error-checking code in the trailer.
ANS: frame
PTS: 1 REF: Page 32
4. There are two different network models. One of them, a peer-to-peer network, also is referred to as a ____________ network.
ANS: workgroup
PTS: 1 REF: Page 34
5. ____________ is an operating system’s ability to execute more than one process at a time.
ANS: Multitasking
PTS: 1 REF: Page 13
6. Before data is transmitted, it is broken into chunks of data and then encapsulated with the source and destination IP addresses to create a ____________.
ANS: packet
PTS: 1 REF: Pages 30-31
MATCHING
Match each item with a statement below:
a.
motherboard
b.
internetwork
c.
BIOS
d.
LAN
e.
CPU
f.
hard drive
g.
WAN
h.
NIC
i.
RAM
j.
CMOS
1. short-term storage
2. main processing component of the computer
3. nerve center of the computer
4. contains instructions for the computer’s boot process
5. network that connects devices in a small geographic area
6. long-term storage
7. network that is geographically dispersed
8. type of memory that holds the system configuration information
9. connection between the computer and the network
10. networks connected with a router
1. ANS: I PTS: 1 REF: Page 4
2. ANS: E PTS: 1 REF: Page 3
3. ANS: A PTS: 1 REF: Page 5
4. ANS: C PTS: 1 REF: Page 8
5. ANS: D PTS: 1 REF: Page 26
6. ANS: F PTS: 1 REF: Page 5
7. ANS: G PTS: 1 REF: Page 28
8. ANS: J PTS: 1 REF: Page 9
9. ANS: H PTS: 1 REF: Page 15
10. ANS: B PTS: 1 REF: Page 26
SHORT ANSWER
1. What is the difference between short-term storage and long-term storage?
ANS:
Data that is stored in short-term storage is completely erased when the computer is powered off. When the computer is turned back on, there is no trace of any previous data. The computer transfers programs and files into this short-term storage to make it readily available for the CPU. Long-term storage retains its data even when no power is applied to the computer. Long-term storage is where programs and files are stored.
PTS: 1 REF: Pages 4-5
2. How do you access the BIOS setup utility?
ANS:
Turn your computer on and watch the first screen that appears carefully as it will have a message. This message will tell you what key to press to enter the BIOS. When you know what key to press, do so quickly. If you do not press the key in time, the computer will continue to boot. After it boots, shut down the computer and try again.
PTS: 1 REF: Page 10
3. What is the difference between a LAN, a MAN, and a WAN?
ANS:
A LAN is a group of computers connected by a network device, such as a hub or switch, that is located in a small area, such as an office building. LAN connections usually have high data transfer rates and use UTP cabling. A MAN is a slightly larger implementation of a LAN that spans a greater area, usually making it necessary to lease telecommunication lines from a local phone company. A WAN is a network that covers a much larger area. It can be in the same state, or across several states, or across several countries. It usually connects several LANs together using high-speed, public communication links that are typically very expensive.
PTS: 1 REF: Pages 26-29
4. What are the three basic tasks performed by a computer?
ANS:
Input, processing, and output. First, it accepts input. Input can come from several different devices like a mouse, a keyboard, or storage. Input usually is generated by a user’s actions, but not always. Next, the CPU processes the input, which means that it examines the input and determines or calculates the results. Finally, the CPU sends instructions to whatever device is appropriate to perform or display the output. Output devices include, but are not limited to, monitors, printers, and storage devices.
PTS: 1 REF: Pages 2-3
5. What is a peer-to-peer network, and what are it’s advantages and disadvantages?
ANS:
A peer-to-peer network is a collection of computers in which each computer can act as a client or a server, or both, and each has equal authority. Advantages of a peer-to-peer network are that it is easy to install, is relatively inexpensive to implement, doesn’t require extensive training or special staff, and the lose of a single machine will not cripple the network. Disadvantages include lack of security, difficult to locate resources, reduced performance when computer is acting as server, and limitation on the number of users.
PTS: 1 REF: Pages 34-36
6. What is a server-based network, and what are it’s advantages and disadvantages?
ANS:
A server-based network is a network that has certain computers that take on the role of servers, and all the other computers act as clients. The advantages are centralized control over network resources, better security, easy expandability, and no limitations to the number of users. The disadvantages include higher costs for equipment and software, the need for administrative personnel to maintain network resources, and the fact that a single computer could cause the entire network to fail.
PTS: 1 REF: Pages 36-37
7. What is the difference between a client operating system and a server operating system?
ANS:
A client operating system is designed mainly to run user applications like a word processor or spreadsheet program and to access network resources like file servers or the Internet. A server operating system is designed to provide clients with access to network resources such as directory services, shared files, and e-mail.
PTS: 1 REF: Page 33
8. Explain the boot procedure.
ANS:
First, power is supplied to the motherboard. Second, the CPU starts. Third, the CPU gets the configuration information from the BIOS and carries out the startup routines, which include performing the POST. The BIOS searches the boot devices for an OS. After an OS is found, it is loaded into RAM, and finally, the OS services are started.
PTS: 1 REF: Page 9
9. What is the purpose of a device driver?
ANS:
A device driver is software that acts as the intermediary between a device and the OS. It handles all requests to and from the device. Whether an input device has data ready to send or an output device is ready for use, the device must have some way of contacting the OS. The device driver accomplishes this by sending a signal in the form of an interrupt.
PTS: 1 REF: Pages 13-14
10. Judy has just sent a ping message from her computer to John’s computer to verify that she has connectivity. List the steps that the message takes to get to the other computer and what layer of the network communication process each step relates to.
ANS:
First, Judy opens a command prompt and types the command “ping 192.168.0.10”. This is the user application layer. The next step is for Judy’s computer to create the ping message to send to John’s computer. This is the network software layer. The ping message then is encapsulated with the IP addresses of both Judy’s computer and John’s, which are the source and destination IP addresses. At this step, Judy’s computer also finds out what the MAC address of John’s computer is, which will be the destination MAC address. Both of these steps are part of the network protocol layer. Finally, Judy’s computer adds her MAC address and John’s MAC address (source and destination MAC addresses) to the package, converts the message into bits, and sends it to the network medium. This is the network interface step.
PTS: 1 REF: Pages 19-20
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Text
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Guide to Networking Essentials, 6th ed., ISBN 1111312524
Ch. 1 Solutions-1
Chapter 1 Solutions
Review Questions
1. Which of the following is one of the three basic functions a computer performs? (Choose all that apply.)
a. Processing
c. Input
e. Output
2. The __________ executes instructions provided by computer programs.
a. CPU
3. When a CPU is composed of two or more processors, each one is referred to as a(n)
________.
b. Core
4. Which of the following is considered long-term storage? (Choose all that apply.)
a. Flash drive
d. Hard drive
5. Which motherboard component controls data transfers between memory, expansion slots, I/O devices, and the CPU?
c. Chipset
6. You want to purchase a new high-performance graphics card for your computer. Which type of connector should it have?
d. PCI-Express
7. The time it takes for read/write heads to move to the correct spot on the platter is the
____________.
b. Seek time
8. Which of the following is a task usually performed by the BIOS? (Choose all that apply.)
a. Perform a POST.
d. Begin the boot procedure.
9. Place the following steps of the boot procedure in order.
a. The OS is loaded into RAM.
b. CPU starts.
c. OS services are started.
d. Power is applied.
e. The POST is executed.
f. Boot devices are searched.
Answer: d, b, e, f, a, c
Guide to Networking Essentials, 6th ed., ISBN 1111312524
Ch. 1 Solutions-2
10. Which of the following is a critical service provided by the OS? (Choose all that apply.)
b. Memory management
d. File system
11. An OS’s capability to run more than one application or process at the same time is referred to which of the following?
c. Multitasking
12. You have just installed a new NIC in your PC to replace the old one that had started malfunctioning. What additional software must be installed to allow the OS to communicate with the new NIC?
b. Device driver
13. Which of the following requests information stored on another computer?
b. Network client
14. Choose the correct order for the process of a user attempting to access network resources:
1. Network protocol
2. Application
3. Network client
4. NIC driver
d. 2, 3, 1, 4
15. TCP/IP is an example of which of the following?
d. Network protocol
16. In network communication, the ______________ address is used to deliver a frame to the correct computer on the network. (Choose all that apply.)
a. MAC
d. Physical
17. A(n) ______________ message is used to determine whether a computer is listening on the network.
b. Ping
18. TCP/IP uses _________ to look up a computer’s IP address, given its name.
a. DNS
19. The unit of information containing MAC addresses and an error-checking code that’s processed by the network interface layer is referred to as a
_______________.
c. Frame
20. Data is processed from the time an application creates it to the time it reaches the network medium. This process includes adding information such as addresses and is called which of the following?
b. Encapsulation
21. You’re the network administrator for a company that has just expanded from one floor to two floors of a large building, and the number of workstations you need has
Guide to Networking Essentials, 6th ed., ISBN 1111312524
Ch. 1 Solutions-3
doubled from 50 to 100. You're concerned that network performance will suffer if you add computers to your existing LAN. In addition, new users will be working in a separate business unit, and there are reasons to logically separate the two groups of computers. What type of network should you configure?
c. Internetwork
22. Which of the following best describes a client?
b. A computer’s primary role in the network is to run user applications and access network resources.
23. You work for a small company with four users who need to share information on their computers. The budget is tight, so the network must be as inexpensive as possible. What type of network should you install?
b. Peer-to-peer network
24. Which of the following characteristics is associated with a peer-to-peer network? (Choose all that apply.)
a. Decentralized data storage
b. Inexpensive
c. User-managed resources
25. A device interconnects five computers and a printer in a single office so that users can share the printer. This configuration is an example of which of the following?
a. LAN
26. At Yavapai College, the Prescott and Prescott Valley campuses (8 miles apart) have LANs connected via the local phone company. This configuration is an example of which of the following? (Choose the best answer.)
a. MAN
27. You have installed Windows Server 2008 on a new server and want to centralize user logons and security policies. What type of software should you install and configure on this server?
d. Directory services
28. Peer-to-peer networks aren’t suitable in which of the following situations?
a. Tight security is required.
29. Which of the following best describes a storage area network?
b. Uses high-speed networking technologies to give servers fast access to large amounts of disk storage
30. Why might Windows 7 or Windows Vista require more RAM or disk space than Windows Server 2008?
d. They support a graphics-intensive user interface.
Hands-On Projects
Hands-On Project 1-1
Step 2: Steps of the boot procedure:
1. Power is applied to the motherboard.
Guide to Networking Essentials, 6th ed., ISBN 1111312524
Ch. 1 Solutions-4
2. CPU starts.
3. CPU carries out BIOS startup routines, include the POST. Step 5: Final steps of the boot procedure:
4. Boot devices are searched for an OS.
5. The OS is loaded into RAM.
6. OS services are started.
Hands-On Project 1-3
Step 5:
• Word-processing program: User application
• NIC displayed in the Connect using text box: Network interface
• Client for Microsoft Networks: Network software
• File and Printer Sharing for Microsoft Networks: Network software
• Internet Protocol Version 4: Network protocol
Hands-On Project 1-5
Step 2: workgroup, peer-to-peer
Hands-On Project 1-6
Step 10: File sharing, peer-to-peer
Case Projects
Case Project 1-1
A server-based network is the best choice. A peer-to-peer network might work for now, but when new employees are hired, a peer- to-peer network would be too difficult to manage. The key is that easy backup and centralized storage for files point to a server-based network.
Case Project 1-2
Because employees must be able to control access to their own resources, a peer-to-peer model works best. Supplies will likely include NICs, cabling, and a switch. Students should state they need to configure file shares and possibly create user accounts on the computers to allow access by other users. They might also need to configure IP address settings, although self-configuring addresses could be used.
Case Project 1-3
An internetwork is called for because LANs in the same building are being connected. A router is probably needed for communication between LANs on the two floors.
Case Project 1-4
A personal area network (PAN)
Case Project 1-5
Guide to Networking Essentials, 6th ed., ISBN 1111312524
Ch. 1 Solutions-5
Answers will vary.
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Test Bank Guide to Computer Forensics and Investigations 4th Edition
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Chapter 1: Computer Forensics and Investigations as a Profession
TRUE/FALSE
1. By the 1970s, electronic crimes were increasing, especially in the financial sector.
ANS: T PTS: 1 REF: 6
2. To be a successful computer forensics investigator, you must be familiar with more than one computing platform.
ANS: T PTS: 1 REF: 8
3. Computer investigations and forensics fall into the same category: public investigations.
ANS: F PTS: 1 REF: 10
4. The law of search and seizure protects the rights of all people, excluding people suspected of crimes.
ANS: F PTS: 1 REF: 11
5. After a judge approves and signs a search warrant, it’s ready to be executed, meaning you can collect evidence as defined by the warrant.
ANS: T PTS: 1 REF: 15
MULTIPLE CHOICE
1. The FBI ____ was formed in 1984 to handle the increasing number of cases involving digital evidence.
a.
Federal Rules of Evidence (FRE)
b.
Department of Defense Computer Forensics Laboratory (DCFL)
c.
DIBS
d.
Computer Analysis and Response Team (CART)
ANS: D PTS: 1 REF: 2
2. ____ involves recovering information from a computer that was deleted by mistake or lost during a power surge or server crash, for example.
a.
Data recovery
c.
Computer forensics
b.
Network forensics
d.
Disaster recovery
ANS: A PTS: 1 REF: 4
3. ____ involves preventing data loss by using backups, uninterruptible power supply (UPS) devices, and off-site monitoring.
a.
Computer forensics
c.
Disaster recovery
b.
Data recovery
d.
Network forensics
ANS: C PTS: 1 REF: 4
4. The ____ group manages investigations and conducts forensic analysis of systems suspected of containing evidence related to an incident or a crime.
a.
network intrusion detection
c.
incident response
b.
computer investigations
d.
litigation
ANS: B PTS: 1 REF: 5
5. By the early 1990s, the ____ introduced training on software for forensics investigations.
a.
IACIS
c.
CERT
b.
FLETC
d.
DDBIA
ANS: A PTS: 1 REF: 6
6. In the Pacific Northwest, ____ meets monthly to discuss problems that law enforcement and corporations face.
a.
IACIS
c.
FTK
b.
CTIN
d.
FLETC
ANS: B PTS: 1 REF: 8
7. In a ____ case, a suspect is tried for a criminal offense, such as burglary, murder, or molestation.
a.
corporate
c.
criminal
b.
civil
d.
fourth amendment
ANS: C PTS: 1 REF: 11
8. In general, a criminal case follows three stages: the complaint, the investigation, and the ____.
a.
litigation
c.
blotter
b.
allegation
d.
prosecution
ANS: D PTS: 1 REF: 12
9. Based on the incident or crime, the complainant makes a(n) ____, an accusation or supposition of fact that a crime has been committed.
a.
litigation
c.
blotter
b.
allegation
d.
prosecution
ANS: B PTS: 1 REF: 13
10. In a criminal or public case, if you have enough information to support a search warrant, the prosecuting attorney might direct you to submit a(n) ____.
a.
blotter
c.
litigation report
b.
exhibit report
d.
affidavit
ANS: D PTS: 1 REF: 14
11. It’s the investigator’s responsibility to write the affidavit, which must include ____ (evidence) that support the allegation to justify the warrant.
a.
litigation
c.
exhibits
b.
prosecution
d.
reports
ANS: C PTS: 1 REF: 14
12. The affidavit must be ____ under sworn oath to verify that the information in the affidavit is true.
a.
notarized
c.
recorded
b.
examined
d.
challenged
ANS: A PTS: 1 REF: 14
13. Published company policies provide a(n) ____ for a business to conduct internal investigations.
a.
litigation path
c.
line of allegation
b.
allegation resource
d.
line of authority
ANS: D PTS: 1 REF: 16
14. A ____ usually appears when a computer starts or connects to the company intranet, network, or virtual private network (VPN) and informs end users that the organization reserves the right to inspect computer systems and network traffic at will.
a.
warning banner
c.
line of authority
b.
right of privacy
d.
right banner
ANS: A PTS: 1 REF: 16
15. A(n) ____ is a person using a computer to perform routine tasks other than systems administration.
a.
complainant
c.
end user
b.
user banner
d.
investigator
ANS: C PTS: 1 REF: 16
16. Without a warning banner, employees might have an assumed ____ when using a company’s computer systems and network accesses.
a.
line of authority
c.
line of privacy
b.
right of privacy
d.
line of right
ANS: B PTS: 1 REF: 16
17. In addition to warning banners that state a company’s rights of computer ownership, businesses should specify a(n) ____ who has the power to conduct investigations.
a.
authorized requester
c.
line of right
b.
authority of line
d.
authority of right
ANS: A PTS: 1 REF: 18
18. Most computer investigations in the private sector involve ____.
a.
e-mail abuse
c.
Internet abuse
b.
misuse of computing assets
d.
VPN abuse
ANS: B PTS: 1 REF: 19
19. Corporations often follow the ____ doctrine, which is what happens when a civilian or corporate investigative agent delivers evidence to a law enforcement officer.
a.
silver-tree
c.
silver-platter
b.
gold-tree
d.
gold-platter
ANS: C PTS: 1 REF: 20
20. Your ____ as a computer investigation and forensics analyst is critical because it determines your credibility.
a.
professional policy
c.
line of authority
b.
oath
d.
professional conduct
ANS: D PTS: 1 REF: 21
21. Maintaining ____ means you must form and sustain unbiased opinions of your cases.
a.
confidentiality
c.
integrity
b.
objectivity
d.
credibility
ANS: B PTS: 1 REF: 21
COMPLETION
1. ____________________ involves obtaining and analyzing digital information for use as evidence in civil, criminal, or administrative cases.
ANS: Computer forensics
PTS: 1 REF: 2
2. The ____________________ to the U.S. Constitution (and each state’s constitution) protects everyone’s rights to be secure in their person, residence, and property from search and seizure.
ANS: Fourth Amendment
PTS: 1 REF: 2
3. The term ____________________ refers to large corporate computing systems that might include disparate or formerly independent systems.
ANS: enterprise network environment
PTS: 1 REF: 4
4. When you work in the ____________________ group, you test and verify the integrity of standalone workstations and network servers.
ANS: vulnerability assessment and risk management
PTS: 1 REF: 5
5. The ____________________ provides a record of clues to crimes that have been committed previously.
ANS: police blotter
PTS: 1 REF: 13
MATCHING
Match each item with a statement below:
a.
Computer forensics
f.
HTCIA
b.
Network forensics
g.
Affidavit
c.
Litigation
h.
Industrial espionage
d.
Xtree Gold
i.
Line of authority
e.
Case law
1. the legal process of proving guilt or innocence in court
2. recognizes file types and retrieves lost or deleted files
3. investigates data that can be retrieved from a computer’s hard disk or other storage media
4. sworn statement of support of facts about or evidence of a crime that is submitted to a judge to request a search warrant before seizing evidence
5. allows legal counsel to use previous cases similar to the current one because the laws don’t yet exist
6. specifies who has the legal right to initiate an investigation, who can take possession of evidence, and who can have access to evidence
7. organization that exchanges information about techniques related to computer investigations and security
8. yields information about how a perpetrator or an attacker gained access to a network
9. involves selling sensitive or confidential company information to a competitor
1. ANS: C PTS: 1 REF: 5
2. ANS: D PTS: 1 REF: 6
3. ANS: A PTS: 1 REF: 3
4. ANS: G PTS: 1 REF: 14
5. ANS: E PTS: 1 REF: 8
6. ANS: I PTS: 1 REF: 16
7. ANS: F PTS: 1 REF: 9
8. ANS: B PTS: 1 REF: 3
9. ANS: H PTS: 1 REF: 15
SHORT ANSWER
1. Briefly describe the triad that makes up computer security.
ANS:
Investigators often work as a team to make computers and networks secure in an organization. The computer investigations function is one of three in a triad that makes up computing security. In an enterprise network environment, the triad consists of the following parts:
* Vulnerability assessment and risk management
* Network intrusion detection and incident response
* Computer investigations
PTS: 1 REF: 4
2. Briefly describe the main characteristics of public investigations.
ANS:
Public investigations involve government agencies responsible for criminal investigations and prosecution. Government agencies range from local, county, and state or provincial police departments to federal regulatory enforcement agencies. These organizations must observe legal guidelines such as Article 8 in the Charter of Rights of Canada, the Criminal Procedures Act of the Republic of Namibia, and U.S. Fourth Amendment issues related to search and seizure rules.
PTS: 1 REF: 10|11
3. Briefly describe the main characteristics of private investigations.
ANS:
Private or corporate investigations deal with private companies, non-law-enforcement government agencies, and lawyers. These private organizations aren’t governed directly by criminal law or Fourth Amendment issues, but by internal policies that define expected employee behavior and conduct in the workplace. Private corporate investigations also involve litigation disputes. Although private investigations are usually conducted in civil cases, a civil case can escalate into a criminal case, and a criminal case can be reduced to a civil case. If you follow good forensics procedures, the evidence found in your investigations can easily make the transition between civil and criminal cases.
PTS: 1 REF: 11
4. What questions should an investigator ask to determine whether a computer crime was committed?
ANS:
In a criminal case, a suspect is tried for a criminal offense, such as burglary, murder, or molestation. To determine whether there was a computer crime, an investigator asks questions such as the following: What was the tool used to commit the crime? Was it a simple trespass? Was it a theft, a burglary, or vandalism? Did the perpetrator infringe on someone else’s rights by cyberstalking or e-mail harassment?
PTS: 1 REF: 11|12
5. What are the three levels of law enforcement expertise established by CTIN?
ANS:
To differentiate the training and experience law officers have, CTIN has established three levels of law enforcement expertise:
* Level 1—Acquiring and seizing digital evidence, normally performed by a street police officer.
* Level 2—Managing high-tech investigations, teaching investigators what to ask for, and understanding computer terminology and what can and can’t be retrieved from digital evidence. The assigned detectives usually handle the case.
* Level 3—Specialist training in retrieving digital evidence, normally performed by a data recovery or computer forensics expert, network forensics expert, or Internet fraud investigator. This person might also be qualified to manage a case, depending on his or her background.
PTS: 1 REF: 13
6. What are some of the most common types of corporate computer crime?
ANS:
Corporate computer crimes can involve e-mail harassment, falsification of data, gender and age discrimination, embezzlement, sabotage, and industrial espionage, which involves selling sensitive or confidential company information to a competitor. Anyone with access to a computer can commit these crimes.
PTS: 1 REF: 15
7. What is embezzlement?
ANS:
Embezzlement is a common computer crime, particularly in small firms. Typically, the owner is busy and trusts one person, such as the office manager, to handle daily transactions. When the office manager leaves, the owner discovers that some clients were overbilled or others were not billed at all, and money is missing. Rebuilding the paper and electronic trail can be tedious. Collecting enough evidence to press charges might be beyond the owner’s capabilities.
PTS: 1 REF: 15
8. Briefly describe corporate sabotage.
ANS:
Corporate sabotage is most often committed by a disgruntled employee. The employee decides to take a job at a competitor’s firm and collects critical files on a disk or thumb drive before leaving. This type of crime can also lead to industrial espionage, which increases every year.
PTS: 1 REF: 15
9. What text can be used in internal warning banners?
ANS:
Depending on the type of organization, the following text can be used in internal warning banners:
* Access to this system and network is restricted.
* Use of this system and network is for official business only.
* Systems and networks are subject to monitoring at any time by the owner.
* Using this system implies consent to monitoring by the owner.
* Unauthorized or illegal users of this system or network will be subject to discipline
or prosecution.
PTS: 1 REF: 17
10. Mention examples of groups that should have direct authority to request computer investigations in the corporate environment.
ANS:
Examples of groups that should have direct authority to request computer investigations in the corporate environment include the following:
* Corporate Security Investigations
* Corporate Ethics Office
* Corporate Equal Employment Opportunity Office
* Internal Auditing
* The general counsel or Legal Department
PTS: 1 REF: 18
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Test Bank Growth and Development Across the Lifespan 2nd Edition
For Order This And Any Other Test
Banks And Solutions Manuals, Course,
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Contact us At: [email protected]
Chapter 1: Healthy People 2020
Test Bank
MULTIPLE CHOICE
1. The purpose of Healthy People 2020 is to:
a.
examine world health needs.
b.
evaluate accomplishments for years 2010–2020.
c.
focus primarily on infant health and mortality.
d.
examine funding issues for health care.
ANS: B
Healthy People 2020 is an evidence-based 10-year report card describing health-care accomplishments in the United States between the years of 2010 and 2020.
DIF: Cognitive Level: Comprehension REF: p. 1 OBJ: 1
TOP: Healthy People 2020 KEY: Nursing Process Step: Intervention
MSC: NCLEX: Health Promotion and Maintenance: prevention and early detection of disease
2. A health-care worker planning a research project related to teenage pregnancy in his community would include in the initial assessment the health status of the target population. Health status could be best evaluated by the examination of the:
a.
birth rate, disease morbidity, and life expectancy.
b.
birth rate, access to health care, and death rate.
c.
disease morbidity, life expectancy, and health insurance coverage.
d.
health insurance coverage, death rate, and access to health care.
ANS: B
Birth rate statistics identify age of mother; death rates include infant mortality and age of mother; access to health care may affect a teenager’s ability to obtain adequate prenatal care.
DIF: Cognitive Level: Application REF: p. 6 OBJ: 3
TOP: Health status KEY: Nursing Process Step: Planning
MSC: NCLEX: Health Promotion and Maintenance: prevention and early detection of disease
3. The health-care worker teaches a group of new parents about the “back to sleep” program, which is directed toward the reduction of sudden infant death syndrome (SIDS) by:
a.
positioning the baby on a small flat pillow.
b.
placing the baby on its back in the crib.
c.
gently rocking the baby before returning it to bed.
d.
tucking infant snuggly in the crib with a light blanket.
ANS: B
The back to sleep program helps reduce the incidence of SIDS by placing the infant on its back rather than on its stomach.
DIF: Cognitive Level: Application REF: p. 8 OBJ: 5
TOP: Back to sleep program KEY: Nursing Process Step: Intervention
MSC: NCLEX: Health Promotion and Maintenance: prevention and early detection of disease
4. Healthy People 2020 endorses the completion of a high school education primarily to enable a person to:
a.
secure a better job.
b.
increase the quality of life.
c.
make healthy lifestyle choices.
d.
maintain the family unit.
ANS: C
One of the goals of Healthy People 2020 is to increase the number of persons graduating from high school so that they have a better education basis on which to make healthy lifestyle choices.
DIF: Cognitive Level: Application REF: p. 8 OBJ: 4
TOP: Health indicators KEY: Nursing Process Step: NA
MSC: NCLEX: NA
5. Healthy People 2020 is published by the:
a.
Centers for Disease Control and Prevention.
b.
Department of the Interior.
c.
World Health Organization.
d.
Department of Health and Human Services.
ANS: D
Healthy People 2020 is published by the U.S. Department of Health and Human Services.
DIF: Cognitive Level: Knowledge REF: p. 1 OBJ: 1
TOP: Healthy People 2020 KEY: Nursing Process Step: NA
MSC: NCLEX: NA
6. Infant mortality rates are based on infant deaths that occur:
a.
at birth, per 1000 deliveries.
b.
before 1 year of age, per 1000 live births.
c.
from infection and congenital disorders, per 1000 live births.
d.
from unexplained causes, per 1000 live births.
ANS: B
Infant mortality is reported on deaths occurring before the age of 1 year per 1000 live births.
DIF: Cognitive Level: Knowledge REF: p. 6 OBJ: 4
TOP: Infant mortality KEY: Nursing Process Step: Planning
MSC: NCLEX: Health Promotion and Maintenance: growth and development
7. Although the life expectancy has increased, Healthy People 2020 will focus on the older adult’s need for:
a.
better pharmacy insurance coverage.
b.
improved extended care facilities.
c.
increased compliance to medical protocols.
d.
maintenance of independent lifestyles.
ANS: D
The maintenance of independent lifestyles is an ongoing problem for the older adult.
DIF: Cognitive Level: Comprehension REF: p. 9 OBJ: 4
TOP: Older adults KEY: Nursing Process Step: Planning
MSC: NCLEX: Health Promotion and Maintenance: prevention and early detection of disease
8. Information about morbidity and mortality gives the health-care worker data to identify:
a.
lifespan statistics.
b.
high-risk age groups for certain diseases or hazards.
c.
effectiveness of treatment.
d.
cost-effective treatment for the general population.
ANS: B
Evaluating specific details of the determinants of health help health-care workers develop an understanding of the health status of the population. Morbidity and mortality statistics can identify risks for disease or health hazard by age group.
DIF: Cognitive Level: Knowledge REF: p. 6 OBJ: 3
TOP: Morbidity KEY: Nursing Process Step: Planning
MSC: NCLEX: Health Promotion and Maintenance: prevention and early detection of disease
9. A major cause of death for children under the age of 1 year is:
a.
congenital abnormalities.
b.
infection.
c.
cancer.
d.
injuries.
ANS: A
The Centers for Disease Control and Prevention has identified congenital abnormalities as a leading cause of death for children under the age of 1 year.
DIF: Cognitive Level: Knowledge REF: p. 6, Box 1-1
OBJ: 1 TOP: Health status
KEY: Nursing Process Step: Intervention
MSC: NCLEX: Health Promotion and Maintenance: prevention and early detection of disease
10. The health-care worker advises a young woman who is 7 weeks pregnant to include folic acid supplements in her diet in order to:
a.
strengthen muscles in preparation for effective labor.
b.
help control excessive weight gain during pregnancy.
c.
reduce incidence of congenital malformations.
d.
enhance the probability of carrying the pregnancy to full term.
ANS: C
One of the goals of Healthy People 2020 is to promote use of folic acid supplements early in pregnancy. Ideally, folic acid supplements, or adequate dietary folic acid, should be recommended early in the pregnancy to help prevent congenital malformations, especially spina bifida.
DIF: Cognitive Level: Application REF: p. 8 OBJ: 4
TOP: Folic acid KEY: Nursing Process Step: Intervention
MSC: NCLEX: Health Promotion and Maintenance: prevention and early detection of disease
11. Guidelines for “baby-friendly” hospitals include:
a.
information about immunizations.
b.
active support of parent–baby bonding.
c.
control of peri-delivery infection.
d.
encouragement to breastfeed for the first year of life.
ANS: D
Baby-friendly hospitals encourage breastfeeding during the first year of life.
DIF: Cognitive Level: Comprehension REF: p. 8 OBJ: 4
TOP: Baby-friendly hospitals KEY: Nursing Process Step: Planning
MSC: NCLEX: Health Promotion and Maintenance: growth and development
12. The statistic widely used to compare the health status of different populations is:
a.
incidence of specific infections such as AIDS or smallpox.
b.
maternal mortality rate.
c.
infant mortality rate.
d.
health insurance coverage.
ANS: C
Infant mortality rates are used worldwide as an indicator of the health of a nation.
DIF: Cognitive Level: Comprehension REF: p. 8 OBJ: 3
TOP: Healthy People progress KEY: Nursing Process Step: Intervention
MSC: NCLEX: Health Promotion and Maintenance: prevention and early detection of disease
13. A health-care worker who is planning a health education program for geriatric adults based on the goals of Healthy People 2020 would include:
a.
smoking cessation.
b.
drug and alcohol abuse.
c.
education about medications.
d.
fall prevention.
ANS: D
Reducing falls will reduce the incidence of hip fracture, which continues to be a problem, especially among elderly females.
DIF: Cognitive Level: Application REF: p. 9 OBJ: 4
TOP: Health education KEY: Nursing Process Step: Planning
MSC: NCLEX: Health Promotion and Maintenance: prevention and early detection of disease
14. The role of the professional nurse has evolved to include:
a.
providing direct care to patients at the bedside.
b.
managing care to cure health problems once they have occurred.
c.
planning patient care to cover longer hospital stays.
d.
forming legislation for policies and practices related to health care.
ANS: D
Nurses are no longer simply providing bedside care. Their role now includes policymaking, global health education planning, working as change agents for traditional health-care systems, and so on.
DIF: Cognitive Level: Comprehension REF: p. 11 OBJ: 5
TOP: World health KEY: Nursing Process Step: NA
MSC: NCLEX: NA
15. Adults over the age of 65 can significantly reduce their health risk by:
a.
using herbal remedies.
b.
getting annual vaccines for influenza and pneumonia.
c.
engaging in a mild exercise regimen.
d.
eating three large, well-balanced meals a day.
ANS: B
Annual immunizations against pneumonia and influenza significantly reduce morbidity from these diseases.
DIF: Cognitive Level: Comprehension REF: p. 9 OBJ: 4
TOP: Issues and goals related to phases of the life cycle
KEY: Nursing Process Step: Planning
MSC: NCLEX: Health Promotion and Maintenance: prevention and early detection of disease
MULTIPLE RESPONSE
16. The new topic areas in the Healthy People guidelines established in 2011 for consideration for Healthy People 2020 include: (Select all that apply.)
a.
adolescent health.
b.
social determinants of health.
c.
blood disorders for adolescents.
d.
gay, lesbian, and transgender health concerns.
e.
teen pregnancies.
ANS: A, B, C, D
The new topics initiated by the Healthy People 2020 guidelines in 2011 include adolescent health, blood disorders and safety, early and middle childhood, genomics, global health, health-care associated infections, health-related concerns for gay, lesbian, and transgender patients, dementia in older adults, preparedness, sleep health, and social determinants of health.
DIF: Cognitive Level: Analysis REF: p. 1 OBJ: 1
TOP: New Healthy People topics KEY: Nursing Process Step: NA
MSC: NCLEX: NA
COMPLETION
17. Criteria used to measure health-related concepts are referred to as ________ ____________.
ANS:
Health indicators
Health indicators are measurements of health-related concepts such as increased availability to health care and changing level of tobacco use.
DIF: Cognitive Level: Knowledge REF: p. 2 OBJ: 3
TOP: Health indicators KEY: Nursing Process Step: NA
MSC: NCLEX: NA
18. The life expectancy at birth in the United States is above ______ years.
ANS:
78
seventy-eight
seventy eight
The life expectancy at birth in the United States is 78.49 years.
DIF: Cognitive Level: Knowledge REF: p. 7, Table 1-2
OBJ: 3 TOP: Life expectancy in the United States
KEY: Nursing Process Step: Intervention
MSC: NCLEX: Health Promotion and Maintenance: growth and development
19. In addition to injuries, the leading causes of death in adolescents and young adults aged 15 through 24 years are ________ and __________.
ANS:
suicide, homicide
homicide, suicide
According to the Healthy People review, suicide and homicide are among the leading causes of death in this age-group.
DIF: Cognitive Level: Knowledge REF: p. 6, Box 1-1
OBJ: 4
TOP: Issues and goals related to phases of the life cycle (adolescent and young adult)
KEY: Nursing Process Step: NA MSC: NCLEX: NA
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Test Bank Groups Process and Practice 9th Edition
For Order This And Any Other Test
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Contact us At: [email protected]
PART I
Resources for Teaching Group Counseling Courses
In this section we present some books, DVD programs on group counseling, and resources (including online resources for your students) that we hope will be helpful in preparing your courses. We also present a comparison of Corey, Corey, and Corey (Groups: Process and Practice, 2014) with Irvin Yalom’s book (The Theory and Practice of Group Psychotherapy, 2005). For those instructors who would like to use both books, a chart summarizes the topics covered, along with relevant page numbers.
1. The core textbook is Groups: Process and Practice (9th ed.). To add to the experiential emphasis in the course, the DVD and workbook package, Groups in Action: Evolution and Challenges, can also be used (which we describe in Part X in this manual).
2. For reading suggestions, we refer students to the list of books in the textbook, Groups: Process and Practice, 9th edition (pages 421-433).
3. Books that you may find useful in preparing for your classes are:
Chen, M., & Rybak, C. J. (2004). Group Leadership Skills: Interpersonal Process in Group Counseling and Therapy. Belmont, CA: Brooks/Cole. This text provides a good overview of both basic and advanced group leadership skills in facilitating groups.
Corey, G. (2012). Theory and Practice of Group Counseling, (8th ed.). Belmont, CA: Brooks/Cole. [with Student Manual]. This text covers eleven major theoretical approaches to group work.
Corey, G., Corey, M. S., & Haynes, R. (2014). Groups in Action: Evolution and Challenges, DVD and workbook (2nd ed.) Belmont, CA: Brooks/Cole, Cengage Learning. This is a 4 ½ hour program that is described in more detail below.
Corey, M. S., Corey, G., & Corey, C. (2014). Groups: Process and Practice, (9th ed.). Belmont, CA: Brooks/Cole, Cengage Learning. This text outlines the basic issues and concepts of group process throughout the life history of a group. It applies these basic concepts to groups for children, adolescents, adults, and older adults.
Corey, G., Corey, M. S., Callanan, P., & Russell, J. M. (2004). Group Techniques, (3rd ed.). Pacific Grove, CA: Brooks/Cole. This text describes ideas for creating and implementing techniques for use in groups. It also gives a rationale for the use of techniques in all the stages in a group’s development.
Corey, G., & Corey, M. S. (2014). I Never Knew I Had a Choice, (10th ed.) Belmont, CA: Brooks/Cole, Cengage Learning. Is a self-help book for personal growth that deals with topics such as the struggle to achieve autonomy; the roles that work, sex roles, sexuality, love, intimacy, and solitude play in our lives; the meaning of loneliness, death, and loss; and the ways in which we choose values and find meaning in life.
DeLucia-Waack, J. L., & Donigian, J. (2004). The Practice of Multicultural Group Work: Visions and Perspectives from the Field. Belmont, CA: Brooks/Cole. This is an excellent treatment of the multicultural dimensions of group work. A variety of respondents address ways of working with group vignettes that illustrate principles in multicultural group work.
DeLucia-Waack, J. L., Gerrity, D. A., Kalodner, C. R., & Riva, M. T. (Eds.). (2004). Handbook of Group Counseling and Psychotherapy. Thousand Oaks, CA: Sage Publications. This edited work contains a wealth of information on a variety of topics in the group field, some of which include: current perspectives, best practices in groups, multicultural groups, groups across settings, groups across the life span, special groups, and emerging issues.
Ivey, A. E., Pedersen, P. B., & Ivey, M. B. (2008). Group microskills: Culture-centered group process and strategies. Hanover, MA: Microtraining Associates. The authors have developed a systematic approach to helping readers learn specific skills of group leading that can be applied to diverse client groups. This book is useful as a tool for developing and assessing a personal group leadership style.
Jacobs, E. E., Masson, R. L., Harvill, R. L., & Schimmel, C. J. (2012). Group Counseling: Strategies and Skills (7th ed.). Belmont, CA: Brooks/Cole, Cengage Learning. This group text covers a number of topical areas generally covered in most group courses such as: stages of groups, planning, getting started, skills and exercises, leading during the middle stages of a group, closing a session, and dealing with problem situations.
Sonstegard, M. A., & Bitter, J. R. (2004). Adlerian Group Counseling and Therapy: Step-by-Step. New York: Brunner-Routledge. The book represents some of the most significant ideas of Alfred Adler and Rudolf Dreikurs as applied to group work. Addressed are many of the practical dimensions of Adlerian group process, including stress on forming a therapeutic relationship; how to create an accepting climate in the group; ways to conduct an assessment of members; increasing awareness and insight; techniques for helping members translate insights into action; and methods of reeducation and reorientation.
Shapiro, J. L., Peltz, L. S., & Bernadett-Shapiro, S. (1998). Brief Group Treatment: Practical Training for Therapists and Counselors. Pacific Grove, CA: Brooks/Cole. Much of this book is geared to stages of groups. Separate chapters are devoted to these phases: preparation, transition, treatment, and termination.
Sweeney, D. S. & Homeyer, L. E. (Eds.). (1999). The Handbook of Group Play Therapy. San Francisco: Jossey-Bass. An excellent reference work on the major approaches to group play therapy, specialized techniques for group play therapy, and special populations in group play therapy.
Tyson, L. E., Perusse, R., & Whitledge, J. (Eds.). (2004). Critical Incidents in Group Counseling. Alexandria, VA: American Counseling Association. This is a useful supplementary resource for entry-level group workers and students. Readers will benefit from being exposed to a wide range of critical incidents described in the book, and they will find meaningful material that will stimulate personal reflection on various approaches to addressing problems that often surface in a group.
Yalom, I. D. (with M. Leszcz, 2005). The Theory and Practice of Group Psychotherapy (5th ed.). NY: Basic Books. Yalom has a comprehensive discussion of the advantages of working in the here-and-now and cover a range of clinical issues in working with problem group members and specialized group formats. There is much in this book that would work well with the group video.
4. DVD and Workbook Supplement to Groups: Process and Practice. Groups in Action: Evolution and Challenges, DVD and Workbook (Corey, G., Corey, M. S., & Haynes, R., 2014). Belmont, CA: Brooks/Cole, Cengage Learning. Groups in Action: Evolution and Challenges consists of three different interactive programs. The first program, Evolution of a Group, is a 2-hour educational program designed to bring to life the development of a group at a 3-day residential workshop co-facilitated by Marianne Schneider Corey and Gerald Corey. The group workshop is composed of members who were willing to explore their own issues and concerns. They were neither actors following a script nor were they role-playing the topics. The second program, Challenges Facing Group Leaders, is a 90-minute educational program designed to address some of the most problematic situations group counselors often encounter. In this program the Coreys co-facilitated a group composed of members who role-played a variety of scenarios depicting critical issues in a group. The participants did not follow a script but improvised around themes that typically evolve in groups. Though the participants were engaged in role playing, they oftentimes moved into genuine personal involvement and interaction in the group. In short, the participants demonstrate a blend of both role playing and drawing on their experiences from the present and the past, both in their roles as group members and as leaders. The third program, Lecturette on Theories and Techniques of Group Counseling, is a 1-hour lecture by Jerry Corey on the main theories of group counseling. This program also describes some techniques associated with the various theoretical frameworks.
These three video programs have corresponding workbook exercises to help students link what they view on the DVD to principles and concepts central to group work.
Groups in Action: Evolution and Challenges, DVD and Workbook is an interactive program to be used for self-study with most group counseling textbooks. The DVD and the workbook emphasize the application of concepts and techniques appropriate to the various stages of a group’s development. The workbook requires that students become active learners as they study group process in action.
Key features of the student workbook that accompanies the text are:
· A previewing self-inventory
· A group leadership skills checklist
· Process commentary elaborating on interventions made with individuals and facilitating the group process
· A summary of key themes for each stage of group that you will see in the video, member functions, and leaders functions
· A strategy for drawing on a variety of techniques
· Questions to consider in understanding group process
· Questions to consider for various segments of work
· Exercises and activities to complete
· A commentary on the issues surrounding the work done by individual members and group process developments
· A follow-up self-inventory at the end of the program
For a very detailed description of Groups in Action: Evolution and Challenges, DVD and Workbook, please refer to section XI of this manual. There are also a pool of test items in this section based on the DVD and workbook.
5. ExamView Electronic Test Preparation Available for download from the instructor website, ExamView® testing software includes all the test items from the printed Test Bank in electronic format, enabling you to create customized tests in print or online.
Utilizing a Combination of Textbooks: Corey, Corey, & Corey with Yalom (with Leszcz)
Some professors will want to require a combination of textbooks. What follows is a comparison of Groups: Process and Practice, (9th edition) by M. S. Corey, G. Corey, & C. Corey (2014) with The Theory and Practice of Group Psychotherapy (5th Edition) by Irvin Yalom (2005). We appreciate the work of Dr. Beverly Palmer who developed the comparison chart that follows.
COMPARISON OF COREY, COREY, & COREY WITH YALOM: INTRODUCTION
Beverly B. Palmer, Ph.D.
Two widely used texts in group psychotherapy/counseling courses are Marianne Schneider Corey, Gerald Corey, and Cindy Corey’s Groups: Process and Practice (9th Edition, 2012, Belmont, CA: Brooks/Cole Cengage Learning) and Irvin Yalom’s (with Molyn Leszcz) The Theory and Practice of Group Psychotherapy (5th Edition, 2005, New York: Basic Books). Each text emphasizes slightly different aspects of group development. Corey, Corey, and Corey identify the key struggle for the initial stage as developing trust, the key struggle for the transition stage as resistance versus risk-taking, the key struggle for the working stage as deepening self-exploration, and the key struggle for the ending stage as consolidating and applying learnings. Yalom identifies the key issue in the initial stage as inclusion, the key issue in the transition stage as control, and the key issue in the working stage as intimacy. Corey, Corey, and Corey provide in-depth analysis of termination while Yalom emphasizes transference and process issues. Both texts have accompanying videos, which illustrate co-therapists facilitating an outpatient therapy group. Corey and Corey’s DVD program is accompanied by a student workbook, which is essential for maximal understanding of the DVD. The texts and DVD provide a comprehensive package of material for the beginning group therapist. To help the instructor and student compare the concepts contained in these texts and instructional resources we have provided the accompanying charts.
COMPARISON OF CONCEPTS IN COREY, COREY, AND COREY with YALOM (with Molyn Lescz)
Beverly B. Palmer, Ph.D.
Concept Location in Corey/Corey/Corey Location in Yalom
Stages of development Chapters 5-9 pp. 309-324
Various types of groups Chapter 1 (pp. 6-12) Chapter 15
Counselor’s qualities & skills Chapter 2 Chapter 17
Co-therapists pp. 162-163 pp. 443-448
pp. 203-210
pp. 257-258
pp. 295-297
pp. 315-316
Ethical & legal issues Chapter 3 p. 308
Theories and Techniques Chapter 4
Forming a group Chapter 5 Chapters 8, 9, & 10
Preparation of participants pp. 193-203 pp. 294-308
Initial Stage Chapter 6
Initial resistance pp. 168-173 pp. 309-319
Social Microcosm p. 10 pp. 31-47
Hidden agendas pp. 171-173 pp. 150-152
Self-focus p. 174-175 pp. 62-69
Here & now focus p. 175-176 Chapter 6
Developing trust pp.176-184 Chapter 5
Goals pp. 184-186 Chapter 1
Norms pp. 186-189 pp. 120-140
Cohesion pp. 190-191 Chapter 3
Structuring pp. 200-201 Chapter 5
pp. 205-206
Transition Stage Chapter 7
Anxiety throughout chapter p. 94, 307,
pp. 194-197
Resistance & fears throughout chapter pp. 296-298
pp. 160-161
Control & conflict throughout chapter Chapter 12
pp. 363-374
pp. 138-140
pp. 318-319
Problem behaviors pp. 233-247 Chapter 13
Confrontation pp. 230-232 pp. 138-140
Transference pp. 252-257 Chapter 7
& countertransference pp. 49-52
pp. 205-215
pp. 444-445
p. 318
Process comments pp. 165-168
Working Stage Chapter 8
Working vs. pp. 273-274 Chapter 12
Non-working norms
Crucial choices pp. 276-278
Therapeutic factors pp. 279-295 Chapters 1 & 4
Patient self-disclosure p. 279-281 pp. 130-140
Therapist self-disclosure pp. 281-283 pp. 215-229
Deepening cohesion pp. 287-289 Chapter 3
Giving feedback pp. 284-286 p. 223; p. 239
Ending Stage Chapter 9 pp. 382-390
Application to different Chapters 10 & 11 Chapters 15 & 16
types of groups
COMPARISON OF VIDEOS OF COREY AND COREY WITH YALOM*
Beverly B. Palmer, Ph.D.
Concept Location in Corey/Corey DVD Location in Yalom Video
Overview of stages Intro Intro
Counselor’s qualities & skills Initial, Transition,
Working, Ending
Co-therapists Entire video Entire video
Ethical & legal issues Initial, Transition, Vignette #2
Working, Ending
Forming a group Intro Intro
Initial stage
Initial resistance Initial Vignette #1
Social Microcosm Initial
Hidden agendas Initial
Self-focus Initial
Here & now focus Initial Vignette #1
Developing trust Initial, Transition
Goals Initial Intro
Norms Initial Vignette #1
Cohesion Initial
Structuring Initial
Transition stage
Anxiety Initial
Resistance & fears Initial, Transition Vignette #2
Control & conflict Transition, Working Vignette #1
Ending
Problem behaviors Initial, Transition Intro
Confrontation Initial, Transition Vignette #2
Transference Initial, Transition Vignette #2
& countertransference
Process comments Transition Vignette #4
Working stage
Working vs. Working Vignette #3
non-working norms
Crucial choices Working Vignette #3
Therapeutic factors Initial, Transition
Working, Ending
Patient self-disclosure Transition Vignette #4
Therapist Working
self-disclosure
Deepening cohesion Working Vignette #4
Giving feedback Working
Ending Stage Ending
*Groups in Action: Evolution and Challenges, Gerald Corey, Marianne Schneider Corey and Robert Haynes, © 2014, Brooks/Cole, Cengage Learning, and
Understanding Group Psychotherapy: Outpatient Group Vol. 1, Irvin D. Yalom, Brooks/Cole.
i
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Test Bank Groups Process and Practice 9th Edition Solution
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Chapter Number and Name: Chapter 1 — Introduction to Group Work
Multiple Choice Test Bank
1. Training for individuals in Task Group leadership involves all of the following broad subject areas except for:
A. Organizational development
B. Conflict resolution
C. Consultation
D. Management
ANS: B PG: 7
2. A protocol of standards that sets forth core competencies for practitioners has been devised by:
A. The American Psychological Association’s Group Counseling Committee
B. The Association of Group Specialist Trainers
C. The Association for Specialists in Group Work
D. The Organization for Practitioners in Group Work
ANS: C PG: 7
3. Jennifer is a 19-year-old emotionally stable college student, but her grades have started to suffer. Her parents suspect alcohol abuse, though they have no proof. They would like her referred to a group that addresses the risks of alcoholism in teenagers. The appropriate group setting would be:
A. Task
B. Brief (time-limited)
C. Counseling
D. Psycho-educational
ANS: D PG: 8
4. Dylan has participated in a court-appointed psycho-educational group designed to address anger management issues. It can be assumed that he filled out an assessment questionnaire:
A. During intake only
B. At program completion only; during intake, assessment questionnaires can prejudice counselors and group leaders and result in preconceived notions
C. During intake and upon program completion
D. Assessment questionnaires are not typically utilized in psycho-educational settings
ANS: C PG: 8
5. Warm-up -> action -> closure is beneficial in helping to achieve and maintain the balance between:
A. Inhibition and the ability to express emotions
B. Learning and follow-through
C. Content and process
D. Training and skills
ANS: C PG: 8
6. A view of a counseling group will typically show a population composed of:
A. Diverse individuals with a similar problem/issue
B. A homogeneous group with a similar problem/issue
C. Diverse individuals with a dissimilar problem/issue
D. A group of individuals selected only for similarities in coping skills, attitudes, etc.
ANS: A PG: 10
7. Dan, a 34-year-old homosexual construction worker; April, a 21-year-old heterosexual single parent; and Sylvester, a 57-year-old Air Force retiree who underwent a blood-transfusion two years ago have all been recently diagnosed as HIV-positive. All need to address the issues of coping and “getting on with life.” The appropriate setting for achieving this goal would be:
A. A psychotherapy group
B. A task group
C. A counseling group
D. A psycho-educational group
ANS: C PG: 10
8. In a psycho-educational group, the leader’s main undertaking is to administer ___________ and create an atmosphere that cultivates _____________.
A. Instruction/behavioral change
B. Cues/expression
C. Cues/self-exploration
D. Instruction/learning
ANS: D PG: 10
9. Chelsea, a 15-year-old has been diagnosed with bulimia. She reports that she is depressed, sees herself as overweight — though she is categorized by her doctors as being underweight — and is experiencing feelings of worthlessness. She would most likely be found in which type of therapy?
A. Counseling
B. Psycho-educational group
C. Inpatient
D. Psychotherapy
ANS: D PG: 11
10. Financial concerns, the advent and increased frequency of managed-care structuring and cutbacks in resources have all led to the increased necessity of:
A. Psycho-educational groups
B. Single-session groups
C. Counseling groups
D. Brief groups
ANS: D PG: 12
11. A group of servicemen and women witnessed a training accident in which comrades were killed and others were left horribly maimed. Many are reporting the effects of being emotionally traumatized. The treatment of choice for these individuals would most likely be a group that:
A. Involves psychotherapy
B. Is time limited
C. Involves the “warm-up/action/closure” model
D. Is open ended in duration; when the issues are sufficiently dealt with, the group is ended
ANS: B PG: 12
12. Shapiro (2010) states his belief that the future of BGT (Brief Group Treatment) hinges primarily on:
A. Training of leaders
B. Balancing financial consideration with time constraints
C. Advocating for longer treatments
D. Tools to assess outcomes better
ANS: A PG: 12
13. A leader is facilitating a group of diverse individuals — diverse in terms of nationality, race, ethnicity and age. The leader should:
A. Keep his or her views on these matters to himself or herself; it is crucial to remain neutral
B. Refrain from taking a stand on matters involving multiculturalism
C. Avoid giving the impression that he or she favors one view above another
D. Openly discuss his or her worldview and its impact on the group process, even at the risk of alienating some
ANS: D PG: 13
14. Solomon is an African-American counselee in your group. Quiet and withdrawn initially, he is quickly coming out of his shell. From a multicultural view, however, you must be aware that his race makes him more likely to:
A. Be less participatory in the counseling process
B. Terminate counseling earlier than certain other groups of people
C. Be generalized, perhaps overgeneralized, by the group leader
D. Reject authority associated with a counselor
ANS: B PG: 13
15. People from specific cultures may be more inclined to turn to all of the following except _______ in order to address areas of concern:
A. Clergy
B. Family
C. A psychologist
D. A traditional “medicine-man”
ANS: C PG: 14
16. Which of the following is not a recommended avenue of addressing concerns inherent in counseling others from cultures of which we are not members?
A. Understanding the client’s community and its hierarchies
B. Assisting others to recognize and address their prejudices and biases
C. Self-reflection
D. Dismissing oneself from leading a group which we believe contains a member or members toward whom we hold strong negative feelings
ANS: D PG: 15
17. Jabir is a Muslim counselee. His counselor is unaware of many aspects of Muslim life, beliefs, etc. Teaching his counselor about these aspects of his life is, according to experts, likely to make him feel:
A. Empowered
B. Proud
C. Frustrated
D. Like a competent spokesperson for his group
ANS: C PG: 16
18. Finding a list of reading sources where one can increase his or her base of knowledge regarding a diverse group:
A. Can increase professional competence
B. Can lead to overgeneralizations
C. Is not recommended; the material can be biased, incorrect, outdated, etc.
D. Can lead to misinformation; the counselor should rely on diverse members to provide this information
ANS: A PG: 16
19. A competent therapist remains ___________ in the counseling process while maintaining openness about ___________.
A. Aware/behavior
B. Respectful/lifestyles and behavior
C. Neutral/attitudinal change
D. Invested/outcomes
ANS: D PG: 16
20. In order to learn more about cultural aspects of diverse clients, therapists should do all of the following except:
A. Create a safe environment
B. Listen carefully
C. Ask many questions that necessitate clarification
D. Provide clients with opportunity to speak freely
ANS: C PG: 21
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Test Bank Government in America People Politics and Policy 16th Edition
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Introducing Government in America
p Multiple-Choice Questions
1. What are the institutions that make public policy decisions for a society collectively known as?
a. political culture
b. the courts
c. the armed forces
d. the national media
e. government
Answer: e
Page Reference: pp. 9–11
A-head: Government
Learning Objective: Edwards L.O. 1.1
Skill Level: Remember the Facts
Topic: Introduction to American Government
2. How does government usually protect its national sovereignty?
a. by maintaining armed forces
b. by maintaining schools, libraries, hospitals, and highways
c. by maintaining a national police force
d. by politically socializing the young
e. by collecting taxes
Answer: a
Page Reference: pp. 9–11
A-head: Government
Learning Objective: Edwards L.O. 1.1
Skill Level: Remember the Facts
Topic: Introduction to American Government
3. What determines whom we select as our governmental leaders and what policies these leaders pursue?
a. the media
b. public opinion
c. politics
d. lobbying efforts
e. public policy
Answer: c
Page Reference: pp. 11–12
A-head: Politics
Learning Objective: Edwards L.O. 1.2
Skill Level: Remember the Facts
Topic: Introduction to American Government
4. The ways in which people get involved in politics make up their political __________.
a. ideals
b. participation
c. party
d. philosophy
e. opinions
Answer: b
Page Reference: pp. 11–12
A-head: Politics
Learning Objective: Edwards L.O. 1.2
Skill Level: Remember the Facts
Topic: Introduction to American Government
5. How does our government respond to the priorities of its people?
a. through public opinion polls
b. through political science
c. through social networking
d. through a policymaking system
e. through political tolerance
Answer: d
Page Reference: pp. 12–15
A-head: The Policymaking System
Learning Objective: Edwards L.O. 1.3
Skill Level: Remember the Facts
Topic: Introduction to American Government
6. What best describes a linkage institution?
a. a channel through which people’s concerns become a political agenda
b. a location to express a political opinion
c. the formation of a special interest group
d. an environment where one learns about the political process
e. a gathering of people to represent a public opinion
Answer: a
Page Reference: pp. 12–15
A-head: The Policymaking System
Learning Objective: Edwards L.O. 1.3
Skill Level: Remember the Facts
Topic: Introduction to American Government
7. What makes up the government’s policy agenda?
a. the issues that make up party platforms
b. the issues that attract the serious attention of public officials and others actively involved in politics at a given time
c. the issues that inform public opinion polls
d. the issues that attract the serious attention of the national media agenda
e. the issues that concern single-issue interest groups
Answer: b
Page Reference: pp. 12–15
A-head: The Policymaking System
Learning Objective: Edwards L.O. 1.3
Skill Level: Remember the Facts
Topic: Introduction to American Government
8. What are policy impacts?
a. issues that attract serious attention of public officials
b. branches of government charged with taking action on political issues
c. the effects that a policy has on people and on society’s problems
d. choices that governments make in response to political issues
e. systems of selecting policymakers and of organizing government so that policy represents and responds to the public’s preferences
Answer: a
Page Reference: pp. 12–15
A-head: The Policymaking System
Learning Objective: Edwards L.O. 1.3
Skill Level: Remember the Facts
Topic: Introduction to American Government
9. As a system, how does democracy function?
a. by ensuring freedom, justice, and peace to all citizens
b. by perpetuating the status quo and upholding the values of the party in power
c. by selecting policymakers and organizing government so that policy represents and responds to the public’s preferences
d. by granting a status of privilege to the most active voters
e. by granting a status of privilege to the most informed voters
Answer: c
Page Reference: pp. 15–24
A-head: Democracy in America
Learning Objective: Edwards L.O. 1.4
Skill Level: Understand the Concepts
Topic: Introduction to American Government
10. What most closely exemplifies equality in voting?
a. adequate and equal opportunities to express preferences
b. a free press
c. free speech
d. one person, one vote
e. open citizenship to all
Answer: d
Page Reference: pp. 15–24
A-head: Democracy in America
Learning Objective: Edwards L.O. 1.4
Skill Level: Understand the Concepts
Topic: Introduction to American Government
11. The principle that, in a democracy, choosing among alternatives requires the majority’s desire to be respected is called __________.
a. enlightened rule
b. pluralism
c. representation
d. minority rights
e. majority rule
Answer: e
Page Reference: pp. 15–24
A-head: Democracy in America
Learning Objective: Edwards L.O. 1.4
Skill Level: Understand the Concepts
Topic: Introduction to American Government
12. What is the theory that argues that group competition results in a rough approximation of the public interest in public policy?
a. pluralist theory
b. hyperpluralist theory
c. balance-of-power theory
d. elite-and-class theory
e. bureaucratic theory
Answer: a
Page Reference: pp. 15–24
A-head: Democracy in America
Learning Objective: Edwards L.O. 1.4
Skill Level: Understand the Concepts
Topic: Introduction to American Government
13. Which theory contends that American society is divided along class lines?
a. pluralism
b. hyperpluralism
c. balance of power
d. elitism
e. bureaucratism
Answer: d
Page Reference: pp. 15–24
A-head: Democracy in America
Learning Objective: Edwards L.O. 1.4
Skill Level: Understand the Concepts
Topic: Introduction to American Government
14. Which theory argues that special interests groups have become sovereign, and the government is merely their servant?
a. pluralism
b. hyperpluralism
c. balance of power
d. elitism
e. bureaucratism
Answer: b
Page Reference: pp. 15–24
A-head: Democracy in America
Learning Objective: Edwards L.O. 1.4
Skill Level: Understand the Concepts
Topic: Introduction to American Government
15. What condition occurs when interests conflict and no coalition is strong enough to form a majority and establish policy?
a. divided government
b. hyperpluralism
c. policy gridlock
d. separation of powers
e. federalism
Answer: c
Page Reference: pp. 15–24
A-head: Democracy in America
Learning Objective: Edwards L.O. 1.4
Skill Level: Understand the Concepts
Topic: Introduction to American Government
16. A set of values widely shared within a society is referred to as which of the following?
a. government
b. politics
c. public policy
d. political culture
e. liberalism
Answer: d
Page Reference: pp. 15–24
A-head: Democracy in America
Learning Objective: Edwards L.O. 1.4
Skill Level: Understand the Concepts
Topic: Introduction to American Government
17. That the U.S. government is more limited and smaller than other advanced industrialized countries is a reflection of the strength of which type of economic policies?
a. laissez-faire
b. populist
c. pluralist
d. elitist
e. corporatist
Answer: a
Page Reference: pp. 15–24
A-head: Democracy in America
Learning Objective: Edwards L.O. 1.4
Skill Level: Understand the Concepts
Topic: Introduction to American Government
18. Refer to Table 1.1, Types of Public Policies. A law passed by Congress and the adoption of a regulation by an agency are both examples of which of the following?
a. interest groups
b. red tape
c. public policies
d. exercises in public opinion
e. majoritarian politics
Answer: c
Page Reference: pp. 12–15
A-head: The Policymaking System
Learning Objective: Edwards L.O. 1.3
Skill Level: Apply What You Know
Topic: Introduction to American Government
19. What is an example of a collective good?
a. clean air
b. a toll road
c. a college education
d. food stamps
e. medical care
Answer: a
Page Reference: pp. 9–11
A-head: Government
Learning Objective: Edwards L.O. 1.1
Skill Level: Apply What You Know
Topic: Introduction to American Government
20. The U.S. troop surge in Afghanistan resulted from which of the following?
a. a regulation
b. a budgetary choice
c. a court decision
d. a congressional statute
e. a presidential action
Answer: e
Page Reference: pp. 12–15
A-head: The Policymaking System
Learning Objective: Edwards L.O. 1.3
Skill Level: Apply What You Know
Topic: Introduction to American Government
21. What kind of public policy involves the legislative enactment of taxes and expenditures?
a. budgetary choice
b. congressional statute
c. court decision
d. presidential action
e. regulation
Answer: a
Page Reference: pp. 12–15
A-head: The Policymaking System
Learning Objective: Edwards L.O. 1.3
Skill Level: Apply What You Know
Topic: Introduction to American Government
22. Which principle of traditional democracy theory is violated in circumstances in which the wealthy have influence far exceeding what would be expected based on their numbers?
a. citizen control of the agenda
b. effective participation
c. enlightened understanding
d. equality in voting
e. inclusion
Answer: a
Page Reference: pp. 15–24
A-head: Democracy in America
Learning Objective: Edwards L.O. 1.4
Skill Level: Apply What You Know
Topic: Introduction to American Government
23. The who of politics includes voters, candidates, groups and parties; the what refers to which of the following?
a. institutions that respond to voters, candidates, groups, and parties
b. media organizations that cover voters, candidates, groups, and parties
c. procedures through which voters, candidates, groups, and parties get what they want
d. the substance of politics and government—benefits and burdens
e. winners and losers
Answer: d
Page Reference: pp. 11–12
A-head: Politics
Learning Objective: Edwards L.O. 1.2
Skill Level: Analyze It
Topic: Introduction to American Government
24. Which of the following is true of public policy?
a. It includes all decisions and nondecisions made by government.
b. It is not relevant unless it is coupled with political culture.
c. It is specifically defined as government action.
d. It only emerges through formal legislative procedures.
e. It only relates to democracies.
Answer: a
Page Reference: pp. 12–15
A-head: The Policymaking System
Learning Objective: Edwards L.O. 1.3
Skill Level: Analyze It
Topic: Introduction to American Government
25. Free speech and a free press are essential to which principle of traditional democratic theory?
a. citizen control of the agenda
b. effective participation
c. enlightened understanding
d. equality in voting
e. inclusion
Answer: c
Page Reference: pp. 15–24
A-head: Democracy in America
Learning Objective: Edwards L.O. 1.4
Skill Level: Analyze It
Topic: Introduction to American Government
26. In the United States, pluralist theory suggests which of the following?
a. Because most citizens fail to pay attention to serious issues, government has become an elite institution.
b. Congress is stronger and more influential than the presidency.
c. Many groups vie for power with no one group dominating politics.
d. Society is governed by an upper-class elite.
e. Too many influential groups cripple government’s ability to govern.
Answer: c
Page Reference: pp. 15–24
A-head: Democracy in America
Learning Objective: Edwards L.O. 1.4
Skill Level: Analyze It
Topic: Introduction to American Government
27. Who is at the center of all theories of elite domination of politics?
a. big business
b. the Congress
c. the nouveau riche
d. the president
e. the Trilateral Commission
Answer: a
Page Reference: pp. 15–24
A-head: Democracy in America
Learning Objective: Edwards L.O. 1.4
Skill Level: Analyze It
Topic: Introduction to American Government
28. According to James Q. Wilson, an “intense commitment to a candidate, a culture, or an ideology that sets people in one group definitively apart from people in another, rival group” is a definition of which of the following?
a. laissez-faire economics
b. liberalism
c. polarization
d. reification
e. socialization
Answer: c
Page Reference: pp. 15–24
A-head: Democracy in America
Learning Objective: Edwards L.O. 1.4
Skill Level: Analyze It
Topic: Introduction to American Government
p True-False Questions
29. Governments politically socialize the young—that is, instill in children knowledge of and pride in the nation and its political system and values.
Answer: TRUE
Page Reference: pp. 9–11
A-head: Government
Learning Objective: Edwards L.O. 1.1
Skill Level: Remember the Facts
Topic: Introduction to American Government
30. The media usually focus on the who of politics.
Answer: TRUE
Page Reference: pp. 11–12
A-head: Politics
Learning Objective: Edwards L.O. 1.2
Skill Level: Remember the Facts
Topic: Introduction to American Government
31. Elections investigate social problems and inform people about them.
Answer: FALSE
Page Reference: pp. 12–15
A-head: The Policymaking System
Learning Objective: Edwards L.O. 1.3
Skill Level: Remember the Facts
Topic: Introduction to American Government
32. It is a physical impossibility for government to be “by the people” in a nation of over 300 million people.
Answer: TRUE
Page Reference: pp. 15–24
A-head: Democracy in America
Learning Objective: Edwards L.O. 1.4
Skill Level: Understand the Concepts
Topic: Introduction to American Government
33. Hyperpluralist theory maintains that who holds office in Washington is of marginal consequence; the corporate giants always have the power.
Answer: FALSE
Page Reference: pp. 15–24
A-head: Democracy in America
Learning Objective: Edwards L.O. 1.4
Skill Level: Understand the Concepts
Topic: Introduction to American Government
34. During the Cold War, a common bumper sticker was “Better Dead Than Red,” reflecting many Americans’ view that they would prefer to fight to the bitter end than submit to the oppression of communist rule.
Answer: TRUE
Page Reference: pp. 15–24
A-head: Democracy in America
Learning Objective: Edwards L.O. 1.4
Skill Level: Apply What You Know
Topic: Introduction to American Government
p Fill-in-the-Blank Questions
35. Groups that have a narrow interest on which their members tend to take an uncompromising stance are known as __________ groups.
Answer: single-issue
Page Reference: pp. 11–12
A-head: Politics
Learning Objective: Edwards L.O. 1.2
Skill Level: Remember the Facts
Topic: Introduction to American Government
36. Policymakers stand at the core of the system, working within the three policymaking institutions established by the U.S. Constitution: __________, the presidency, and the courts.
Answer: Congress
Page Reference: pp. 12–15
A-head: The Policymaking System
Learning Objective: Edwards L.O. 1.3
Skill Level: Remember the Facts
Topic: Introduction to American Government
37. __________ can best be defined as a political philosophy supporting the rights of average citizens in their struggle against privileged elites.
Answer: Populism
Page Reference: pp. 15–24
A-head: Democracy in America
Learning Objective: Edwards L.O. 1.4
Skill Level: Remember the Facts
Topic: Introduction to American Government
38. Although Americans are widely supportive of cultural values such as liberty and egalitarianism, some scholars are concerned that a sharp __________ into rival liberal versus conservative political cultures has taken place in recent years.
Answer: polarization
Page Reference: pp. 15–24
A-head: Democracy in America
Learning Objective: Edwards L.O. 1.4
Skill Level: Understand the Concepts
Topic: Introduction to American Government
39. __________ opposed the 2009 stimulus bill, arguing that such increases in the scope of the federal government would result in less freedom and prosperity.
Answer: Conservatives
Page Reference: pp. 25–26
A-head: The Scope of Government in America
Learning Objective: Edwards L.O. 1.5
Skill Level: Understand the Concepts
Topic: Introduction to American Government
40. Those who are inclined to support a(n) __________ role for government argue that its intervention is sometimes the only means of achieving important goals in American society.
Answer: active
Page Reference: pp. 25–26
A-head: The Scope of Government in America
Learning Objective: Edwards L.O. 1.5
Skill Level: Apply What You Know
Topic: Introduction to American Government
p Short Answer Questions
41. What are the five major functions provided by all governments? Give one example each of how these functions are performed in the United States.
Answer: An ideal response will:
1. Identify maintaining a national defense and provide an example. For example, nations maintain armed services, and spending for the military may increase depending on national events.
2. Identify providing public goods and services and provide an example. These include those that are provided to everyone, such as roads and schools, as well as those that are provided to some of the population but not all (such as colleges).
3. Identify preserving the order and provide an example. For example, the National Guard may be called to maintain order following a protest.
4. Identify socializing the young and provide an example. This involves informing children and instilling pride in the nation and the political system.
5. Identify collecting taxes by the federal, state, and local governments and provide an example. These pay for various services.
Page Reference: pp. 9–11
A-head: Government
Learning Objective: Edwards L.O. 1.1
Skill Level: Understand the Concepts
Topic: Introduction to American Government
42. What is Harold Laswell’s definition of politics?
Answer: An ideal response will:
1. Define politics according to Laswell as “Who gets what, when, and how.”
2. Discuss the who—the voters, groups, and parties; the what—the substance of politics; and the how—the ways in which people participate in politics.
Page Reference: pp. 11–12
A-head: Politics
Learning Objective: Edwards L.O. 1.2
Skill Level: Understand the Concepts
Topic: Introduction to American Government
43. What is a single-issue group? Give an example of a single-issue group.
Answer: An ideal response will:
1. Define single-issue groups as having only one issue with which they are concerned.
2. Explain that this one issue generally determines how a member might vote.
3. Provide an example of a single-issue group such as a group that either favors or is opposed to abortion rights.
Page Reference: pp. 11–12
A-head: Politics
Learning Objective: Edwards L.O. 1.2
Skill Level: Apply What You Know
Topic: Introduction to American Government
44. See Figure 1.4, The Policymaking System. According to the figure, how does government policy come into being and become part of a policy agenda?
Answer: An ideal response will:
1. Describe how government policy typically begins with the people. People have interests, problems, and concerns that government may consider addressing.
2. Discuss how linkage institutions such as parties, elections, media, or interest groups help transmit the public’s preferences to government. This facilitates political issues making it to the policy agenda.
Page Reference: pp. 12–15
A-head: The Policymaking System
Learning Objective: Edwards L.O. 1.3
Skill Level: Apply What You Know
Topic: Introduction to American Government
45. Compare and contrast majority rule and minority rights. How does democracy provide for both?
Answer: An ideal response will:
1. Indicate that majority rule means that policies should reflect the will of more than half the people.
2. Explain that minority rights protect the minority from having their rights deprived by the majority. Restraints are placed on the majority from limiting the rights of the minority.
3. Provide examples of an ideal democratic process to demonstrate how democracy provides for majority rule and minority rights at the same time, such as equality in voting, equal opportunity to express preferences, free press and free speech, collective citizen control of the government’s policy agenda, and open citizenship to all.
Page Reference: pp. 15–24
A-head: Democracy in America
Learning Objective: Edwards L.O. 1.4
Skill Level: Analyze It
Topic: Introduction to American Government
46. What is the role of wealth in pluralist theory vs. elite theory? Which do you find most convincingly portrays the reality of contemporary U.S. politics and why?
Answer: An ideal response will:
1. Explain that in pluralism groups compete for access to decision making with no one group dominating.
2. Note that elite theory suggests that the upper class has greater influence over decision making, thus the wealthy control policy decisions.
3. Argue in favor of one of these. If supporting pluralist theory, note the many different groups gain different access points. If supporting elite theory, note that certain groups have access to greater resources and are therefore in a beneficial position.
Page Reference: pp. 15–24
A-head: Democracy in America
Learning Objective: Edwards L.O. 1.4
Skill Level: Analyze It
Topic: Introduction to American Government
p Essay Questions
47. Describe the five principles of traditional democratic theory as understood by Robert Dahl. To what extent does the United States fit this theory?
Answer: An ideal response will:
1. Identify equality in voting as no one person’s vote counts more than another’s.
2. Note that in effective participation citizens must have adequate and equal opportunities to promote their preferences in the decision-making process.
3. Explain that enlightened understanding requires free speech and a free press for an informed citizenry.
4. Describe citizen control of the agenda, where the people have the ability to control the agenda.
5. Discuss inclusion, where government should include and extend rights to all in society.
6. Evaluate the extent to which the United States fits what Dahl wrote about.
Page Reference: pp. 15–24
A-head: Democracy in America
Learning Objective: Edwards L.O. 1.4
Skill Level: Understand the Concepts
Topic: Introduction to American Government
48. What is American political culture? What is its nature? How is it construed? Is America experiencing a “culture war”? How do you know?
Answer: An ideal response will:
1. Discuss political culture, which may be defined as the set of overall values that are widely shared within society. Americans have a set of shared beliefs, based on the Declaration of Independence.
2. Provide the competing views on whether or not there is a cultural war. For example, some scholars like John Q. Wilson have noted the polarization between liberals and conservatives. This polarization may set people against one another. On the other hand, some scholars suggest that there is no culture war in America. Wayne Baker, for example, finds little evidence of a culture war. Even contentious issues like abortion do not provide evidence of a culture war.
3. Evaluate whether we are having a cultural war in the United States. Weigh the arguments on both sides of the culture war discussion and consider what a culture war would look like.
Page Reference: pp. 15–24
A-head: Democracy in America
Learning Objective: Edwards L.O. 1.4
Skill Level: Apply What You Know
Topic: Introduction to American Government
49. What are the five elements of the American creed? Where and in what ways are each of the five elements evidenced in contemporary American politics? Provide examples.
Answer: An ideal response will:
1. List the five elements of the American creed: liberty, egalitarianism, individualism, laissez-faire economics, and populism.
2. Note that liberty involves freedoms. Thomas Jefferson considered it alongside other inalienable rights that people are entitled to. Egalitarianism involves the concept of equality of opportunity. Individualism is the notion that people can and should get ahead on their own. Laissez-faire economics promotes free markets and limited government intervention in economic activity. Populism focuses on the people.
3. Discuss how each of these applies to contemporary American politics. Most Americans still believe in liberty and the protection against government tyranny; New Hampshire’s official state motto is “Live Free or Die.”. Modern egalitarianism suggests that Americans should have equal opportunity; equal voting rights for all adult American citizens is still an issue in recent elections. Individualism is still of fundamental importance; immigrants see America as a place where one can make it on one’s own without interference from government. Views on laissez-faire economics likely vary based on ideological predispositions, but Americans have a lighter tax burden
than citizens of other democratic nations. Modern populism focuses on a political philosophy that supports the rights of average citizens in their struggle against privileged elites, and can be seen in the Tea-Party and Occupy-Wall-Street movements.
Page Reference: pp. 15–24
A-head: Democracy in America
Learning Objective: Edwards L.O. 1.4
Skill Level: Apply What You Know
Topic: Introduction to American Government
50. Those who are inclined to support an active role for government argue that its intervention is sometimes the only means of achieving important goals in American society; others argue that such increases in the scope of the federal government result in less freedom and prosperity. In the case of the 2009 economic stimulus package, which argument do you agree with? Why?
Answer: An ideal response will:
1. Provide the basic arguments for and against the 2009 economic stimulus package. President Obama, for example, argued that government intervention was necessary to stimulate the economy and to get the country out of recession. Conservatives, including Republican John Boehner, argued that this was another example of big government and that the stimulus bill would reduce freedom and prosperity.
2. Argue for or against the stimulus bill. If arguing in favor of the stimulus, note that only government has the adequate resources to stimulate the economy and get the nation out of recession. The government also has the ability to ensure that certain people are not discriminated against. Finally, proponents of the bill would argue that government intervention has improved the economy. If arguing against the stimulus, note that big government is not the solution to the economic crisis. Big government limits freedom and prosperity.
Page Reference: pp. 25–26
A-head: The Scope of Government in America
Learning Objective: Edwards L.O. 1.5
Skill Level: Analyze It
Topic: Introduction to American Government
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Introducing Government in America
pMultiple-Choice Questions
1. What are the institutions that make public policy decisions for a society collectively known as?
a. political culture
b. the courts
c. government
d. Congress
Answer:c
Test Bank Item Title: TB_Q1.1.1
Topic: Government
Learning Objective:LO 1.1: Identify the key functions of government and explain why they matter.
Page Reference: 8
Skill Level: Remember the Facts
Difficulty Level: Easy
2. How does government usually protect its national sovereignty?
a. by maintaining armed forces
b. by maintaining schools, libraries, hospitals, and highways
c. by collecting taxes
d. by politically socializing the young
Answer: a
Test Bank Item Title: TB_Q1.1.2
Topic: Government
Learning Objective:LO 1.1: Identify the key functions of government and explain why they matter.
Page Reference: 9
Skill Level: Understand the Concepts
Difficulty Level: Moderate
3. What determines whom we select as our governmental leaders and what policies these leaders pursue?
a. the media
b. public opinion
c. politics
d. public policy
Answer: c
Test Bank Item Title: TB_Q1.2.3
Topic: Politics
Learning Objective:LO 1.2: Define politics in the context of democratic government.
Page Reference: 10
Skill Level: Remember the Facts
Difficulty Level: Easy
4. The ways in which people get involved in politics make up their political __________.
a. ideals
b. participation
c. party
d. opinions
Answer: b
Test Bank Item Title: TB_Q1.2.4
Topic: Politics
Learning Objective:LO 1.2: Define politics in the context of democratic government.
Page Reference: 10
Skill Level: Remember the Facts
Difficulty Level: Easy
5. How does our government respond to the priorities of its people?
a. through public opinion polls
b. through political science
c. through political tolerance
d. through a policymaking system
Answer: d
Test Bank Item Title: TB_Q1.3.5
Topic: The Policymaking System
Learning Objective:LO 1.3: Assess how citizens can have an impact on public policy and how policies can impact people.
Page Reference: 11
Skill Level: Understand the Concepts
Difficulty Level: Moderate
6. What best describes a linkage institution?
a. a channel through which people’s concerns become part of the political agenda
b. a location to express a political opinion
c. the formation of a special interest group
d. an environment where one learns about the political process
Answer: a
Test Bank Item Title: TB_Q1.3.6
Topic: The Policymaking System
Learning Objective:LO 1.3: Assess how citizens can have an impact on public policy and how policies can impact people.
Page Reference: 12
Skill Level: Remember the Facts
Difficulty Level: Easy
7. What makes up the government’s policy agenda?
a. all of the issues that candidates talk about on the campaign trail
b. the issues that attract the serious attention of public officials and other political actors
c. the issues that are asked about on public opinion polls
d. the issues that concern single-issue interest groups
Answer: b
Test Bank Item Title: TB_Q1.3.7
Topic: The Policymaking System
Learning Objective:LO 1.3: Assess how citizens can have an impact on public policy and how policies can impact people.
Page Reference: 12
Skill Level: Remember the Facts
Difficulty Level: Easy
8. What are policy impacts?
a. issues that attract serious attention of public officials
b. government institutions that are charged with taking action on political issues
c. the effects that a policy has on people and on society’s problems
d. systems of selecting policymakers and of organizing government so that policy represents and responds to the public’s preferences
Answer:c
Test Bank Item Title: TB_Q1.3.8
Topic: The Policymaking System
Learning Objective:LO 1.3: Assess how citizens can have an impact on public policy and how policies can impact people.
Page Reference: 13
Skill Level: Remember the Facts
Difficulty Level: Easy
9. What is democracy?
a. a system that ensures freedom, justice, and peace to all citizens
b. a system that perpetuates the status quo and upholdsthe values of the party in power
c. a system that selects policymakers and organizes government so that policy represents and responds to the public’s preferences
d. a system that grants a status of privilege to the most active and informed voters
Answer: c
Test Bank Item Title: TB_Q1.4.9
Topic: Democracy in America
Learning Objective:LO 1.4: Identify the key principles of democracy and outline theories regarding how it works in practice and the challenges democracy faces today.
Page Reference: 14
Skill Level: Remember the Facts
Difficulty Level: Easy
10. What most closely exemplifies equality in voting?
a. adequate and equal resources for expressing preferences
b. freedom ofspeech and of the press
c. one person, one vote
d. universal citizenship
Answer:c
Test Bank Item Title: TB_Q1.4.10
Topic: Democracy in America
Learning Objective:LO 1.4: Identify the key principles of democracy and outline theories regarding how it works in practice and the challenges democracy faces today.
Page Reference: 14
Skill Level: Apply What You Know
Difficulty Level: Moderate
11. The __________ principle is that, in a democracy, policies should reflect the will of more than half of the voters.
a. enlightened rule
b. pluralism
c. representation
d. majority rule
Answer:d
Test Bank Item Title: TB_Q1.4.11
Topic: Democracy in America
Learning Objective:LO 1.4: Identify the key principles of democracy and outline theories regarding how it works in practice and the challenges democracy faces today.
Page Reference: 15
Skill Level: Understand the Concepts
Difficulty Level: Moderate
12. What is the theory that argues that group competition results in a rough approximation of the public interest in public policy?
a. pluralism
b. hyperpluralism
c. balance-of-power theory
d. elite-and-class theory
Answer: a
Test Bank Item Title: TB_Q1.4.12
Topic: Democracy in America
Learning Objective:LO 1.4: Identify the key principles of democracy and outline theories regarding how it works in practice and the challenges democracy faces today.
Page Reference: 15
Skill Level: Understand the Concepts
Difficulty Level: Moderate
13. Which theory contends that American society is divided along class lines?
a. pluralism
b. hyperpluralism
c. balance of power
d. elitism
Answer: d
Test Bank Item Title: TB_Q1.4.13
Topic: Democracy in America
Learning Objective:LO 1.4: Identify the key principles of democracy and outline theories regarding how it works in practice and the challenges democracy faces today.
Page Reference: 16
Skill Level: Understand the Concepts
Difficulty Level: Moderate
14. Which theory argues that special interest groups have essentially become sovereign, and the government is merely their servant?
a. pluralism
b. hyperpluralism
c. balance of power
d. bureaucratism
Answer: b
Test Bank Item Title: TB_Q1.4.14
Topic: Democracy in America
Learning Objective:LO 1.4: Identify the key principles of democracy and outline theories regarding how it works in practice and the challenges democracy faces today.
Page Reference: 17
Skill Level: Understand the Concepts
Difficulty Level: Moderate
15. What condition occurs when interests conflict and no coalition is strong enough to form a majority and establish policy, yet each may be strong enough to thwart the will of the others?
a. divided government
b. hyperpluralism
c. policy gridlock
d. separation of powers
Answer: c
Test Bank Item Title: TB_Q1.4.15
Topic: Democracy in America
Learning Objective:LO 1.4: Identify the key principles of democracy and outline theories regarding how it works in practice and the challenges democracy faces today.
Page Reference: 18
Skill Level: Remember the Facts
Difficulty Level: Easy
16. A set of values widely shared within a society is referred to as which of the following?
a. government
b. politics
c. public policy
d. political culture
Answer: d
Test Bank Item Title: TB_Q1.4.16
Topic: Democracy in America
Learning Objective:LO 1.4: Identify the key principles of democracy and outline theories regarding how it works in practice and the challenges democracy faces today.
Page Reference: 19
Skill Level: Remember the Facts
Difficulty Level: Easy
17. The U.S. preference for __________ economic policies helps to explain why we have a smaller and more limited government than do most other advanced industrialized countries.
a. laissez-faire
b. populist
c. pluralist
d. egalitarian
Answer: a
Test Bank Item Title: TB_Q1.4.17
Topic: Democracy in America
Learning Objective:LO 1.4: Identify the key principles of democracy and outline theories regarding how it works in practice and the challenges democracy faces today.
Page Reference: 21
Skill Level: Understand the Concepts
Difficulty Level: Moderate
18. A law passed by Congress and the adoption of a regulation by an agency are examples of which of the following?
a. interest groups
b. red tape
c. public policies
d. public opinion
Answer: c
Test Bank Item Title: TB_Q1.3.18
Topic: The Policymaking System
Learning Objective:LO 1.3: Assess how citizens can have an impact on public policy and how policies can impact people.
Page Reference:11 – 14
Skill Level: Apply What You Know
Difficulty Level: Moderate
19. What is an example of a collective good?
a. clean air
b. medical care
c. a college education
d. food stamps
Answer: a
Test Bank Item Title: TB_Q1.1.19
Topic: Government
Learning Objective:LO 1.1: Identify the key functions of government and explain why they matter.
Page Reference: 10
Skill Level: Apply What You Know
Difficulty Level: Moderate
20. The withdrawal of American troops from Iraq resulted from which of the following?
a. a regulation
b. a budgetary choice
c. a congressional statute
d. a presidential action
Answer:d
Test Bank Item Title: TB_Q1.3.20
Topic: The Policymaking System
Learning Objective:LO 1.3: Assess how citizens can have an impact on public policy and how policies can impact people.
Page Reference:13
Skill Level: Apply What You Know
Difficulty Level: Moderate
21. What kind of public policy involves the legislative enactment of taxes and expenditures?
a. budgetary choice
b. regulation
c. court decision
d. presidential action
Answer: a
Test Bank Item Title: TB_Q1.3.21
Topic: The Policymaking System
Learning Objective:LO 1.3: Assess how citizens can have an impact on public policy and how policies can impact people.
Page Reference: 13
Skill Level: Apply What You Know
Difficulty Level: Moderate
22. Which principle of traditional democracy theory is violated in circumstances in which the wealthy have influence over the government’s policy agenda that far exceeds what would be expected based on their numbers?
a. citizen control of the agenda
b. effective participation
c. enlightened understanding
d. equality in voting
Answer: a
Test Bank Item Title: TB_Q1.4.22
Topic: Democracy in America
Learning Objective:LO 1.4: Identify the key principles of democracy and outline theories regarding how it works in practice and the challenges democracy faces today.
Page Reference: 15
Skill Level: Apply What You Know
Difficulty Level: Moderate
23. What is public policy?
a. all government decisions
b. the root causes of political culture
c. the public’s policy preferences
d. only legislation enacted by Congress
Answer: a
Test Bank Item Title: TB_Q1.3.23
Topic: The Policymaking System
Learning Objective:LO 1.3: Assess how citizens can have an impact on public policy and how policies can impact people.
Page Reference: 13
Skill Level: Remember the Facts
Difficulty Level: Easy
24. Free speech and a free press are essential to which principle of traditional democratic theory?
a. inclusion
b. effective participation
c. enlightened understanding
d. equality in voting
Answer: c
Test Bank Item Title: TB_Q1.4.24
Topic: Democracy in America
Learning Objective:LO 1.4: Identify the key principles of democracy and outline theories regarding how it works in practice and the challenges democracy faces today.
Page Reference: 15
Skill Level: Apply What You Know
Difficulty Level: Moderate
25. In the United States, pluralism suggests which of the following?
a. Because most citizens fail to pay attention to serious issues, government has become an elite institution.
b. Congress is stronger and more influential than the presidency.
c. Many groups vie for power with no one group dominating politics.
d.Too many influential groups cripple government’s ability to govern.
Answer: c
Test Bank Item Title: TB_Q1.4.25
Topic: Democracy in America
Learning Objective:LO 1.4: Identify the key principles of democracy and outline theories regarding how it works in practice and the challenges democracy faces today.
Page Reference: 15
Skill Level: Understand the Concepts
Difficulty Level: Moderate
26. Who is at the center of all theories of elitism?
a. big business
b. Congress
c. ordinary citizens
d. interest groups
Answer: a
Test Bank Item Title: TB_Q1.4.26
Topic: Democracy in America
Learning Objective:LO 1.4: Identify the key principles of democracy and outline theories regarding how it works in practice and the challenges democracy faces today.
Page Reference: 16
Skill Level: Understand the Concepts
Difficulty Level: Difficult
27. According to James Q. Wilson, __________ is an “intense commitment to a candidate, a culture, or an ideology that sets people in one group definitively apart from people in another, rival group.”
a. laissez-faire economics
b. liberalism
c. polarization
d. socialization
Answer: c
Test Bank Item Title: TB_Q1.4.27
Topic: Democracy in America
Learning Objective:LO 1.4: Identify the key principles of democracy and outline theories regarding how it works in practice and the challenges democracy faces today.
Page Reference:21
Skill Level: Understand the Concepts
Difficulty Level: Moderate
pTrue-False Questions
28. Governments instill in children knowledge of and pride in the nation and its political system and values.
Answer: TRUE
Test Bank Item Title: TB_Q1.1.28
Topic: Government
Learning Objective:LO 1.1: Identify the key functions of government and explain why they matter.
Page Reference: 10
Skill Level: Understand the Concepts
Difficulty Level: Moderate
29. The media usually focus on the substance of politics and government.
Answer:FALSE
Test Bank Item Title: TB_Q1.2.29
Topic: Politics
Learning Objective:LO 1.2: Define politics in the context of democratic government.
Page Reference:10
Skill Level: Understand the Concepts
Difficulty Level: Moderate
30. Elections investigate social problems and inform people about them.
Answer: FALSE
Test Bank Item Title: TB_Q1.3.30
Topic: The Policymaking System
Learning Objective:LO 1.3: Assess how citizens can have an impact on public policy and how policies can impact people.
Page Reference:12
Skill Level: Understand the Concepts
Difficulty Level: Moderate
31. It is a physical impossibility for government to be “by the people” in a nation of over 300 million people.
Answer: TRUE
Test Bank Item Title: TB_Q1.4.31
Topic: Democracy in America
Learning Objective:LO 1.4: Identify the key principles of democracy and outline theories regarding how it works in practice and the challenges democracy faces today.
Page Reference:14
Skill Level: Apply What You Know
Difficulty Level: Moderate
32. Hyperpluralism maintains that who holds office in Washington is of marginal consequence; the corporate giants always have the power.
Answer: FALSE
Test Bank Item Title: TB_Q1.4.32
Topic: Democracy in America
Learning Objective:LO 1.4: Identify the key principles of democracy and outline theories regarding how it works in practice and the challenges democracy faces today.
Page Reference:17
Skill Level: Apply What You Know
Difficulty Level: Moderate
33. During the Cold War, a common bumper sticker was “Better Dead Than Red,” reflecting many Americans’ view that they would prefer to fight to the bitter end than submit to the oppression of communist rule.
Answer: TRUE
Test Bank Item Title: TB_Q1.4.33
Topic: Democracy in America
Learning Objective:LO 1.4: Identify the key principles of democracy and outline theories regarding how it works in practice and the challenges democracy faces today.
Page Reference:19
Skill Level: Understand the Concepts
Difficulty Level: Difficult
34. The national debt is currently about $17 billion.
Answer:FALSE
Test Bank Item Title: TB_Q1.5.34
Topic: The Scope of Government in America
Learning Objective:LO 1.5: Outline the central arguments of the debate in America over the proper scope of government.
Page Reference:24
Skill Level: Remember the Facts
Difficulty Level: Easy
35. Congress, the presidency, and the courts are all policymaking institutions.
Answer:TRUE
Test Bank Item Title: TB_Q1.3.35
Topic: The Policymaking System
Learning Objective:LO 1.3: Assess how citizens can have an impact on public policy and how policies can impact people.
Page Reference:13
Skill Level: Understand the Concepts
Difficulty Level:Moderate
pFill-in-the-Blank Questions
36. Groups that have a narrow interest on which their members tend to take an uncompromising stance are known as __________ groups.
Answer: single-issue
Test Bank Item Title: TB_Q1.2.36
Topic: Politics
Learning Objective:LO 1.2: Define politics in the context of democratic government.
Page Reference: 11
Skill Level: Remember the Facts
Difficulty Level:Easy
37. __________ can best be defined as a political philosophy supporting the rights of average citizens in their struggle against privileged elites.
Answer:Populism
Test Bank Item Title: TB_Q1.4.37
Topic: Democracy in America
Learning Objective:LO 1.4: Identify the key principles of democracy and outline theories regarding how it works in practice and the challenges democracy faces today.
Page Reference:21
Skill Level: Remember the Facts
Difficulty Level: Easy
38. Some are concerned that the United States has become too __________, which means that our political divisions have intensified in recent years.
Answer:polarized
Test Bank Item Title: TB_Q1.4.38
Topic: Democracy in America
Learning Objective:LO 1.4: Identify the key principles of democracy and outline theories regarding how it works in practice and the challenges democracy faces today.
Page Reference:21 – 22
Skill Level: Understand the Concepts
Difficulty Level: Moderate
39. __________ opposed the 2009 stimulus bill, arguing that such increases in the scope of the federal government would result in less freedom and prosperity.
Answer:Conservatives
Test Bank Item Title: TB_Q1.5.39
Topic: The Scope of Government in America
Learning Objective:LO 1.5: Outline the central arguments of the debate in America over the proper scope of government.
Page Reference:23
Skill Level: Understand the Concepts
Difficulty Level:Moderate
40. Those who are inclined to support a(n) __________ role for government argue that governmentintervention is sometimes the only means of achieving important goals in American society.
Answer:active
Test Bank Item Title: TB_Q1.5.40
Topic: The Scope of Government in America
Learning Objective:LO 1.5: Outline the central arguments of the debate in America over the proper scope of government.
Page Reference:23
Skill Level: Understand the Concepts
Difficulty Level:Moderate
pShort Answer Questions
41. What are the five major functions provided by all governments? Give one example each of how these functions are performed in the United States.
Answer: An ideal response will:
1. Identify maintaining a national defense and provide an example. For example, the United States maintains armed forces.
2. Identify providing public goods and services and provide an example. These include those that are provided to everyone, such as roads and public schools, as well as those that are provided to some of the population but not all (such as Social Security).
3. Identify preserving the order and provide an example. For example, the National Guard may be called to maintain order following a protest.
4. Identify socializing the young and provide an example. For example, schoolchildren often start the day with the Pledge of Allegiance.
5. Identify collecting taxes by the federal, state, and local governments and provide an example. These pay for various services.
Test Bank Item Title: TB_Q1.1.41
Topic: Government
Learning Objective:LO 1.1: Identify the key functions of government and explain why they matter.
Page Reference:9 – 10
Skill Level: Understand the Concepts
Difficulty Level:Moderate
42. What is Harold Lasswell’s definition of politics?
Answer: An ideal response will:
1. Define politics according to Lasswell as “Who gets what, when, and how.”
2. Discuss the who—the voters, groups, and parties; the what—the substance of politics; and the how—the ways in which people participate in politics.
Test Bank Item Title: TB_Q1.2.42
Topic: Politics
Learning Objective:LO 1.2: Define politics in the context of democratic government.
Page Reference:10
Skill Level: Apply What You Know
Difficulty Level: Moderate
43. What is a single-issue group? Give an example of a single-issue group.
Answer: An ideal response will:
1. Define single-issue groups as having only one issue with which they are concerned.
2. Explain that this one issue generally determines how a member might vote.
3. Provide an example of a single-issue group, such as a group that either favors or is opposed to abortion rights.
Test Bank Item Title: TB_Q1.2.43
Topic: Politics
Learning Objective:LO 1.2: Define politics in the context of democratic government.
Page Reference:11
Skill Level: Apply What You Know
Difficulty Level: Moderate
44. According to Figure 1.4, The Policymaking System, how does government policy come into being and become part of a policy agenda?
Answer: An ideal response will:
1. Describe how government policy typically begins with the people. People have interests, problems, and concerns that government may consider addressing.
2. Discuss how linkage institutions such as parties, elections, media, or interest groups help transmit the public’s preferences to government. This facilitates political issues making it to the policy agenda.
Test Bank Item Title: TB_Q1.3.44
Topic: The Policymaking System
Learning Objective:LO 1.3: Assess how citizens can have an impact on public policy and how policies can impact people.
Page Reference:12
Skill Level: Understand the Concepts
Difficulty Level: Moderate
45. Compare and contrast majority rule and minority rights. How does democracy provide for both?
Answer: An ideal response will:
1. Indicate that majority rule means that policies should reflect the will of more than half the people.
2. Explain that minority rights protect the minority from having their rights deprived by the majority. Restraints are placed on the majority to prevent them fromlimiting the rights of the minority.
3. Provide examples of democratic governments emphasizing both majority rule and minority rights.
Test Bank Item Title: TB_Q1.4.45
Topic: Democracy in America
Learning Objective:LO 1.4: Identify the key principles of democracy and outline theories regarding how it works in practice and the challenges democracy faces today.
Page Reference:14 – 15
Skill Level: Analyze It
Difficulty Level: Difficult
46. Compare and contrast the role of wealth in pluralistand elite theories. Which do you find most convincingly portrays the reality of contemporary U.S. politics, and why?
Answer: An ideal response will:
1. Explain that in pluralism, groups compete for access to decision making with no one group dominating. Both the wealthy and the non-wealthy have the ability to influence the government’s policy agenda.
2. Note that elite theory suggests that the upper class has greater influence over decision making, thus the wealthy control policy decisions.
3. Argue in favor of one of these. If supporting pluralist theory, note that many different groups gain different access points. If supporting elite theory, note that certain groups have access to greater resources and are therefore in a beneficial position.
Test Bank Item Title: TB_Q1.4.46
Topic: Democracy in America
Learning Objective:LO 1.4: Identify the key principles of democracy and outline theories regarding how it works in practice and the challenges democracy faces today.
Page Reference:15 – 17
Skill Level: Analyze It
Difficulty Level: Difficult
pEssay Questions
47. Describe the five principles of traditional democratic theory as understood by Robert Dahl. To what extent does the United States fit this theory?
Answer: An ideal response will:
1. Identify equality in voting as the idea that no one person’s vote counts more than another’s.
2. Note that in effective participation citizens must have adequate and equal opportunities to promote their preferences in the decision-making process.
3. Explain that enlightened understanding requires free speech and a free press for an informed citizenry.
4. Describe how citizens have the ability to control the agenda.
5. Discuss how government should include and extend rights to all in society.
6. Evaluate the extent to which the United States fits these criteria.
Test Bank Item Title: TB_Q1.4.47
Topic: Democracy in America
Learning Objective:LO 1.4: Identify the key principles of democracy and outline theories regarding how it works in practice and the challenges democracy faces today.
Page Reference:14 – 15
Skill Level: Analyze It
Difficulty Level: Difficult
48. What is political culture? Is America experiencing a “culture war”? How do you know?
Answer: An ideal response will:
1. Define political cultureas the set of overall values that are widely shared within society. Americans have a set of shared beliefs, based on the Declaration of Independence.
2. Explain what is meant by a culture war.
3. Provide the competing views on whether or not there is a culture war. For example, some scholars like John Q. Wilson have noted the polarization between liberals and conservatives. This polarization may set people against one another. On the other hand, some scholars suggest that there is no culture war in America. Wayne Baker, for example, finds little evidence of a culture war. Even contentious issues like abortion do not provide evidence of a culture war.
4. Evaluate whether we are having a cultural war in the United States. Weigh the arguments on both sides of the culture war discussion and consider what a culture war would look like.
Test Bank Item Title: TB_Q1.4.48
Topic: Democracy in America
Learning Objective:LO 1.4: Identify the key principles of democracy and outline theories regarding how it works in practice and the challenges democracy faces today.
Page Reference:19 – 22
Skill Level: Analyze It
Difficulty Level: Difficult
49. What are the five elements of the American creed? Where and in what ways are each of the five elements embeddedin contemporary American politics? Provide examples.
Answer: An ideal response will:
1. Describe the five elements of the American creed: liberty, egalitarianism, individualism, laissez-faire economics, and populism.
2. Note that liberty involves freedoms. Thomas Jefferson considered it alongside other inalienable rights that people are entitled to. Egalitarianism involves the concept of equality of opportunity. Individualism is the notion that people can and should get ahead on their own. Laissez-faire economics promotes free markets and limited government intervention in economic activity. Populism focuses on the people.
3. Discuss how each of these applies to contemporary American politics. Most Americans still believe in liberty and the protection against government tyranny;New Hampshire’s official state motto is “Live Free or Die.” Modern egalitarianism suggests that Americans should have equal opportunity; equal voting rights for all adult American citizens is still an issue in recent elections. Individualism is still of fundamental importance; immigrants see America as a place where one can make it on one’s own without interference from government. Views on laissez-faire economics likely vary based on ideological predispositions, but Americans have a lighter tax burdenthan citizens of other democratic nations. Modern populism focuses on a political philosophy that supports the rights of average citizens in their struggle against privileged elites, and can be seen in the TeaParty and OccupyWallStreet movements.
Test Bank Item Title: TB_Q1.4.49
Topic: Democracy in America
Learning Objective:LO 1.4: Identify the key principles of democracy and outline theories regarding how it works in practice and the challenges democracy faces today.
Page Reference:19 – 21
Skill Level: Apply What You Know
Difficulty Level: Moderate
50. Those who are inclined to support an active role for government argue that its intervention is sometimes the only means of achieving important goals in American society; others argue that such increases in the scope of the federal government result in less freedom and prosperity. In the case of the 2009 economic stimulus package, which argument do you agree with? Why?
Answer: An ideal response will:
1. Provide the basic arguments for and against the 2009 economic stimulus package. President Obama, for example, argued that government intervention was necessary to stimulate the economy and to get the country out of recession. Conservatives, including Republican John Boehner, argued that this was another example of big government and that the stimulus bill would reduce freedom and prosperity.
2. Argue for or against the stimulus bill. If arguing in favor, note that only government has the adequate resources to stimulate the economy and get the nation out of recession. The government also has the ability to ensure that certain people are not discriminated against. Finally, proponents of the bill would argue that government intervention has improved the economy. If arguing against the stimulus, note that big government is not the solution to the economic crisis. Big government limits freedom and prosperity.
Test Bank Item Title: TB_Q1.5.50
Topic: The Scope of Government in America
Learning Objective:LO 1.5: Outline the central arguments of the debate in America over the proper scope of government.
Page Reference:23 – 25
Skill Level: Analyze It
Difficulty Level: Difficult
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Test Bank Governing Texas 2nd Edition
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Chapter 1: The Political Culture, People, and Economy of Texas
MULTIPLE CHOICE
1. ________ is important because it effects how people participate in politics and how individuals and institutions interact.
a.
Individualistic political culture
d.
Political culture
b.
Traditionalistic political culture
e.
Politics
c.
Moralistic political culture
ANS: D DIF: Easy REF: Texas Political Culture
OBJ: Describe the defining characteristics of political culture in Texas
STA: 8 MSC: Applying
2. A belief that government is designed to promote the public good describes the ________ political culture.
a.
traditionalistic
d.
provincialistic
b.
moralistic
e.
constitutionalistic
c.
individualistic
ANS: B DIF: Easy REF: Texas Political Culture
OBJ: Describe the defining characteristics of political culture in Texas
STA: 8 MSC: Understanding
3. Traditionalistic political cultures, according to Daniel Elazar, are typically found in the
a.
Northeast.
d.
Midwest.
b.
West.
e.
border states.
c.
South.
ANS: C DIF: Medium REF: Texas Political Culture
OBJ: Describe the defining characteristics of political culture in Texas
STA: 8 MSC: Applying
4. Political culture is a term used to describe
a.
the level of education and learning in a particular state.
b.
the degree of public support for the arts.
c.
the broadly shared values and beliefs about government.
d.
the amount of partisan bickering in a state.
e.
how liberal or conservative a state is.
ANS: C DIF: Easy REF: Texas Political Culture
OBJ: Describe the defining characteristics of political culture in Texas
STA: 8 MSC: Understanding
5. Which of the following would best characterize traditional, individualistic political culture?
a.
low taxes and deference to business leaders
b.
government policies that promote traditional social morals
c.
government policies designed to benefit the political elite
d.
encouragement of active participation in government
e.
high taxes and government run by elites
ANS: A DIF: Medium REF: Texas Political Culture
OBJ: Describe the defining characteristics of political culture in Texas
STA: 8 MSC: Applying
6. Which of the following is the best description of Texas political culture?
a.
Texas currently resembles the U.S. West more than the South in terms of its political
culture.
b.
Texans have a moralistic political culture.
c.
The political culture of Texas has been dominated by Hispanic immigration.
d.
Texas has multiple political cultures within its borders.
e.
Texas has a traditionalistic-moralistic political culture.
ANS: D DIF: Easy REF: Texas Political Culture
OBJ: Describe the defining characteristics of political culture in Texas
STA: 8 MSC: Applying
7. Which of the following does NOT reflect one of the historic characteristics that make up
Texas political culture?
a.
provincialism
b.
the dominance of business interests
c.
the strong role of labor unions
d.
the dominance of the Democratic Party
e.
a preference for limited government
ANS: C DIF: Medium REF: Texas Political Culture
OBJ: Describe the defining characteristics of political culture in Texas
STA: 8 MSC: Applying
8. By ________, all major statewide elected offices in Texas were controlled by Republicans.
a.
1980
d.
1996
b.
1988
e.
2002
c.
1992
ANS: E DIF: Medium REF: Texas Political Culture
OBJ: Describe the defining characteristics of political culture in Texas
STA: 8 MSC: Remembering
9. Provincialism is best defined as
a.
the belief that God will lead.
b.
a narrow view of the world.
c.
the belief in limited government.
d.
the belief in the free market.
e.
the belief in the right to own private property.
ANS: B DIF: Easy REF: Texas Political Culture
OBJ: Describe the defining characteristics of political culture in Texas
STA: 8 MSC: Understanding
10. Which of the following political groups have traditionally had the LEAST influence on Texas politics?
a.
labor unions
d.
Mexican-American interest groups
b.
business groups
e.
farmers
c.
trial lawyers
ANS: A DIF: Easy REF: Texas Political Culture
OBJ: Describe the defining characteristics of political culture in Texas
STA: 8 MSC: Analyzing
11. Which of the following has traditionally dominated the political culture of Texas?
a.
labor unions
d.
the Catholic Church
b.
business interests
e.
lawyers
c.
environmentalist groups
ANS: B DIF: Easy REF: Texas Political Culture
OBJ: Describe the defining characteristics of political culture in Texas
STA: 8 MSC: Applying
12. Texas has four distinct physical regions EXCEPT
a.
the Gulf Coastal Plains.
d.
the Great Plains.
b.
the Interior Lowlands.
e.
the Basin and Range Province.
c.
the Interior Highlands.
ANS: C DIF: Easy REF: The Land
OBJ: Explain how Texas’s geography has influenced its political culture
STA: 8 MSC: Understanding
13. Which economic industry does NOT originate in the Gulf Coast Plains region?
a.
cattle raising
d.
petrochemical
b.
timber production
e.
oilfields
c.
cotton production
ANS: A DIF: Medium REF: The Land
OBJ: Explain how Texas’s geography has influenced its political culture
STA: 8 MSC: Applying
14. Texas’s political life grew out of which region?
a.
the Interior Lowlands
d.
the Great Plains
b.
the Gulf Coastal Plains
e.
the Basin and Range Province
c.
the Interior Highlands
ANS: B DIF: Medium REF: The Land
OBJ: Explain how Texas’s geography has influenced its political culture
STA: 8 MSC: Analyzing
15. Houston is found in the Texas
a.
Interior Lowlands.
d.
Gulf Coastal Plains.
b.
Great Plains.
e.
Panhandle.
c.
Basin and Range Province.
ANS: D DIF: Easy REF: The Land
OBJ: Explain how Texas’s geography has influenced its political culture
STA: 8 MSC: Evaluating
16. Which city is located in the Great Plains region of Texas?
a.
Lubbock
d.
San Antonio
b.
Fort Worth
e.
Austin
c.
El Paso
ANS: A DIF: Easy REF: The Land
OBJ: Explain how Texas’s geography has influenced its political culture
STA: 8 MSC: Applying
17. Big Bend is found in what region of Texas?
a.
the Interior Lowlands
d.
the Great Plains
b.
the Basin and Range Province
e.
the Panhandle
c.
the Gulf Coastal Plains
ANS: B DIF: Medium REF: The Land
OBJ: Explain how Texas’s geography has influenced its political culture
STA: 8 MSC: Understanding
18. Politically, urban areas and suburban areas in Houston and Dallas-Fort Worth can be characterized as ________ and ________ areas.
a.
Liberal; Republican
d.
Democratic; Tea Party
b.
Tea Party; Republican
e.
Democratic; Libertarian
c.
Democratic; Republican
ANS: C DIF: Difficult REF: The Land
OBJ: Explain how Texas’s geography has influenced its political culture
STA: 8 MSC: Evaluating
19. Since late twentieth and early twenty-first centuries, the Border region, including El Paso, McAllen, and Brownsville, has remained politically a ________ bastion.
a.
Democratic Party
d.
competitive two-party
b.
Republican Party
e.
Liberal and Tea Party
c.
Tea Party
ANS: A DIF: Medium REF: The Land
OBJ: Explain how Texas’s geography has influenced its political culture
STA: 8 MSC: Applying
20. The term creative destruction refers to the process by which
a.
governments must occasionally overtax certain businesses that are no longer performing well.
b.
the capitalist system undergoes periodic waves of transformation caused by new technologies.
c.
a state’s political culture undergoes occasional changes as a result of demographic upheavals.
d.
governments replace one constitutional system with another.
e.
power shifts from one political party to another.
ANS: B DIF: Medium REF: Economic Change in Texas
OBJ: Trace the evolution of Texas’s economy STA: 8
MSC: Understanding
21. Which technological change did NOT help define and redefine the Texas political economy over the last 150 years?
a.
cotton production
b.
cattle distribution
c.
the oil industry
d.
the development of high-tech economy
e.
the large scale irrigation from underwater reservoirs, particularly the Ogallala Aquifer
ANS: E DIF: Medium REF: Economic Change in Texas
OBJ: Trace the evolution of Texas’s economy STA: 8
MSC: Remembering
22. ________ is the system, common in the late nineteenth and early twentieth centuries, by which farmers would be lent land and equipment in exchange for part of the profits.
a.
Indentured servitude
d.
Sharecropping
b.
Free ranging
e.
Provincialism
c.
Wildcatting
ANS: D DIF: Easy REF: Economic Change in Texas
OBJ: Trace the evolution of Texas’s economy STA: 8
MSC: Remembering
23. Who led the Grange and Populist movements of the late nineteenth century?
a.
tenant farmers
d.
the railroad industry
b.
cattle barons
e.
oil prospectors
c.
Hispanic laborers
ANS: A DIF: Easy REF: Economic Change in Texas
OBJ: Trace the evolution of Texas’s economy STA: 8
MSC: Understanding
24. When in Texas history did cattle become big business?
a.
during the period of Mexican rule
d.
between the 1930s and the 1950s
b.
during the Republic
e.
during Spanish rule
c.
after the Civil War
ANS: C DIF: Medium REF: Economic Change in Texas
OBJ: Trace the evolution of Texas’s economy STA: 8
MSC: Analyzing
25. Which of the following did NOT contribute to the spread of cattle ranching in the nineteenth century?
a.
the invention of barbed wire
b.
the rationalization of cattle-raising techniques
c.
the antigrazing position of farm unions
d.
the development of large and economically diverse ranches
e.
the development of railroads
ANS: C DIF: Easy REF: Economic Change in Texas
OBJ: Trace the evolution of Texas’s economy STA: 8
MSC: Evaluating
26. Which event occurred at Spindletop, Texas?
a.
Oil was discovered.
b.
The first free-range ranch in Texas was established.
c.
The last battle for Texas independence was fought.
d.
The state’s worst race riots occurred.
e.
The state’s worst tornado disaster occurred.
ANS: A DIF: Easy REF: Economic Change in Texas
OBJ: Trace the evolution of Texas’s economy STA: 8
MSC: Evaluating
27. The regulation of oil and energy in Texas is performed by
a.
the Texas Railroad Commission.
b.
the Texas Department of Oil and Gas.
c.
the governor of Texas.
d.
ExxonMobil.
e.
hardly anyone; there is little if any regulation of the Texas oil and energy industry.
ANS: A DIF: Medium REF: Economic Change in Texas
OBJ: Trace the evolution of Texas’s economy STA: 8
MSC: Applying
28. ________ was the chief economic product of Texas during the early twentieth century.
a.
Cattle
d.
Dairy
b.
Cotton
e.
Steel
c.
Oil
ANS: C DIF: Easy REF: Economic Change in Texas
OBJ: Trace the evolution of Texas’s economy STA: 8
MSC: Remembering
29. The largest royalty for Texas university endowment comes from which economic product?
a.
cattle
d.
dairy
b.
cotton
e.
steel
c.
oil
ANS: C DIF: Medium REF: Economic Change in Texas
OBJ: Trace the evolution of Texas’s economy STA: 8
MSC: Understanding
30. Which two Texas metropolitan areas are national centers for the high-tech industry?
a.
Lubbock and Midland
d.
San Antonio and Waco
b.
Houston and El Paso
e.
Houston and San Antonio
c.
Dallas and Austin
ANS: C DIF: Medium REF: Economic Change in Texas
OBJ: Trace the evolution of Texas’s economy STA: 8
MSC: Remembering
31. Technological change in Texas is best evidenced by the
a.
Civil War’s positive effect on the Texas economy.
b.
boom-and-bust cycle of the oil industry.
c.
development of a high-tech industry after a slump in oil prices.
d.
continued reliance on ranching.
e.
continued reliance on oil production.
ANS: C DIF: Medium REF: Economic Change in Texas
OBJ: Trace the evolution of Texas’s economy STA: 8
MSC: Applying
32. Which Texas metropolitan area is known worldwide for its medical center and expanding research facilities in the medical field?
a.
San Antonio
d.
El Paso
b.
Dallas
e.
Houston
c.
Austin
ANS: E DIF: Easy REF: Economic Change in Texas
OBJ: Trace the evolution of Texas’s economy STA: 8
MSC: Analyzing
33. What year was the North American Fair Trade Agreement (NAFTA) signed?
a.
1972
d.
1992
b.
1982
e.
2002
c.
1988
ANS: D DIF: Difficult REF: Economic Change in Texas
OBJ: Trace the evolution of Texas’s economy STA: 8
MSC: Remembering
34. NAFTA established
a.
free trade between North and Central America.
b.
free trade between Mexico, the United States, and Canada.
c.
free trade between Texas and Mexico.
d.
a more liberalized immigration policy.
e.
free trade between the United States and China.
ANS: B DIF: Medium REF: Economic Change in Texas
OBJ: Trace the evolution of Texas’s economy STA: 8
MSC: Analyzing
35. Which of the following contributed most to the increase in the population of Texas?
a.
domestic migration from other states
b.
international immigration
c.
a natural increase of births in proportion to deaths
d.
people moving to Texas from Louisiana after Hurricane Katrina
e.
domestic migration and international immigration contributed equally
ANS: C DIF: Medium REF: The People of Texas
OBJ: Explain how the population of Texas has changed over time
STA: 8 MSC: Analyzing
36. Approximately what percentage of the current population of Texas is Hispanic?
a.
12 percent
d.
50 percent
b.
38 percent
e.
65 percent
c.
45 percent
ANS: B DIF: Medium REF: The People of Texas
OBJ: Explain how the population of Texas has changed over time
STA: 8 MSC: Understanding
37. In 1944, the Supreme Court case Smith v. Allwright ended
a.
school segregation.
d.
black codes.
b.
poll taxes.
e.
all Jim Crow laws.
c.
white primaries.
ANS: C DIF: Medium REF: The People of Texas
OBJ: Explain how the population of Texas has changed over time
STA: 8 MSC: Applying
38. Which racial or ethnic group in Texas is concentrated in East Texas?
a.
Hispanics
d.
Asian Americans
b.
German Americans
e.
Caucasian Americans
c.
African Americans
ANS: C DIF: Medium REF: The People of Texas
OBJ: Explain how the population of Texas has changed over time
STA: 8 MSC: Remembering
39. What was Stephen F. Austin’s role in the development of Texas?
a.
He established the first free-range cattle ranch.
b.
He worked with the Spanish government to bring American settlers into Texas.
c.
He was an important early oil entrepreneur.
d.
He designed the city that bears his name.
e.
He was one of Texas’s most successful cattle barons.
ANS: B DIF: Medium REF: The People of Texas
OBJ: Explain how the population of Texas has changed over time
STA: 8 MSC: Analyzing
40. In 1950, the Supreme Court case Sweatt v. Painter
a.
guaranteed African Americans admission to Texas’s graduate and professional schools.
b.
outlawed poll taxes.
c.
ended segregation of public schools.
d.
ended black codes.
e.
ended all Jim Crow laws.
ANS: A DIF: Medium REF: The People of Texas
OBJ: Explain how the population of Texas has changed over time
STA: 8 MSC: Remembering
41. Which city in Texas currently has the largest population?
a.
San Antonio
d.
El Paso
b.
Dallas
e.
Austin
c.
Houston
ANS: C DIF: Easy REF: Urbanization
OBJ: Describe Texas’s shift from a rural society to an urban one
STA: 8 MSC: Understanding
42. Which statement regarding urbanization in Texas is INCORRECT?
a.
More than 85 percent of Texans now live in urban areas.
b.
Historically, Texas urbanization depended on the spread of the railroads.
c.
The origins of cities in Texas are found in Native American civilizations.
d.
Urban development started in east Texas and spread west.
e.
In the 1850s, only about 4 percent of Texans lived in urban areas.
ANS: C DIF: Difficult REF: Urbanization
OBJ: Describe Texas’s shift from a rural society to an urban one
STA: 8 MSC: Evaluating
43. Dallas developed in the late nineteenth century as a result of
a.
the intersection of two railroad lines.
b.
the development of the Port of Dallas.
c.
the easy access to the Rio Grande River.
d.
the development of a large international airport.
e.
becoming the cattle-trading hub for the state.
ANS: A DIF: Medium REF: Urbanization
OBJ: Describe Texas’s shift from a rural society to an urban one
STA: 8 MSC: Applying
44. Historically, the economy of Fort Worth has been associated with what industry?
a.
oil
d.
shipping
b.
cattle
e.
cotton
c.
computer technology
ANS: B DIF: Easy REF: Urbanization
OBJ: Describe Texas’s shift from a rural society to an urban one
STA: 8 MSC: Remembering
45. The economy of San Antonio rests on all of the following EXCEPT
a.
national military bases.
d.
tourism.
b.
educational institutions.
e.
a large medical research complex.
c.
the high-tech industry.
ANS: C DIF: Easy REF: Urbanization
OBJ: Describe Texas’s shift from a rural society to an urban one
STA: 8 MSC: Evaluating
TRUE/FALSE
1. Texas political culture is best described as moralistic political.
ANS: F DIF: Easy REF: Texas Political Culture
OBJ: Describe the defining characteristics of political culture in Texas
STA: 8 MSC: Understanding
2. Politics in Texas has been defined by the almost-equal political popularity of both the Democrats and Republicans.
ANS: F DIF: Medium REF: Texas Political Culture
OBJ: Describe the defining characteristics of political culture in Texas
STA: 8 MSC: Applying
3. Provincialism has been a defining pattern of Texas political culture.
ANS: T DIF: Difficult REF: Texas Political Culture
OBJ: Describe the defining characteristics of political culture in Texas
STA: 8 MSC: Evaluating
4. Throughout its history, business interests have dominated Texan political culture.
ANS: T DIF: Easy REF: Texas Political Culture
OBJ: Describe the defining characteristics of political culture in Texas
STA: 8 MSC: Analyzing
5. Houston is located in the Gulf Coastal Plains region.
ANS: T DIF: Easy REF: The Land
OBJ: Explain how Texas’s geography has influenced its political culture
STA: 8 MSC: Remembering
6. Texas’s political life grew out of the Gulf Coastal Plains.
ANS: T DIF: Easy REF: The Land
OBJ: Explain how Texas’s geography has influenced its political culture
STA: 8 MSC: Analyzing
7. Dallas is located in the Basin and Range Province.
ANS: F DIF: Easy REF: The Land
OBJ: Explain how Texas’s geography has influenced its political culture
STA: 8 MSC: Remembering
8. The Border region is typically a Democratic Party bastion.
ANS: T DIF: Easy REF: The Land
OBJ: Explain how Texas’s geography has influenced its political culture
STA: 8 MSC: Remembering
9. Cotton is one of the oldest crops grown in Texas.
ANS: T DIF: Easy REF: The Land
OBJ: Explain how Texas’s geography has influenced its political culture
STA: 8 MSC: Remembering
10. Oil was the primary industry in Texas during the nineteenth century.
ANS: F DIF: Easy REF: Economic Change in Texas
OBJ: Trace the evolution of Texas’s economy STA: 8
MSC: Applying
11. In recent times, the oil and gas royalties created one of the largest university endowments for all University of Texas and Texas A&M schools.
ANS: T DIF: Medium REF: Economic Change in Texas
OBJ: Trace the evolution of Texas’s economy STA: 8
MSC: Analyzing
12. Agriculture accounts for 35 percent of the contemporary Texan workforce.
ANS: F DIF: Easy REF: Economic Change in Texas
OBJ: Trace the evolution of Texas’s economy STA: 8
MSC: Applying
13. Oil was first discovered in West Texas in 1842.
ANS: F DIF: Medium REF: Economic Change in Texas
OBJ: Trace the evolution of Texas’s economy STA: 8
MSC: Applying
14. Oil production remains the primary driving force of exports from the Texas economy.
ANS: F DIF: Medium REF: Economic Change in Texas
OBJ: Trace the evolution of Texas’s economy STA: 8
MSC: Evaluating
15. The high-tech economy of Texas emerged during the 1920s.
ANS: F DIF: Easy REF: Economic Change in Texas
OBJ: Trace the evolution of Texas’s economy STA: 8
MSC: Applying
16. NAFTA has created a free-trade market throughout North and Central America.
ANS: F DIF: Difficult REF: Economic Change in Texas
OBJ: Trace the evolution of Texas’s economy STA: 8
MSC: Analyzing
17. Two of the most important factors that may have helped Texas escape the worst of the Great Recession were an increasingly diversified economy lubricated by international trade and a resurgent oil and gas industry.
ANS: T DIF: Difficult REF: Economic Change in Texas
OBJ: Trace the evolution of Texas’s economy STA: 8
MSC: Analyzing
18. People of Hispanic origin make up over 30 percent of the population of Texas today.
ANS: T DIF: Easy REF: The People of Texas
OBJ: Explain how the population of Texas has changed over time
STA: 8 MSC: Understanding
19. On average, Texans are younger than the rest of the United States.
ANS: T DIF: Easy REF: The People of Texas
OBJ: Explain how the population of Texas has changed over time
STA: 8 MSC: Understanding
20. The largest city in Texas is San Antonio.
ANS: F DIF: Easy REF: Urbanization
OBJ: Describe Texas’s shift from a rural society to an urban one
STA: 8 MSC: Remembering
ESSAY
1. What is political culture? What types of political cultures does Texas have? What are the three effects of Texas’s unique political culture?
ANS:
Answers will vary.
DIF: Medium REF: Texas Political Culture
OBJ: Describe the defining characteristics of political culture in Texas
STA: 8 MSC: Analyzing
2. Describe the four different physical regions of Texas. What are some ways in which the geographic features of Texas have shaped and influenced its politics?
ANS:
Answers will vary.
DIF: Medium REF: The Land
OBJ: Explain how Texas’s geography has influenced its political culture
STA: 8 MSC: Analyzing
3. Describe the major changes and developments over time in the Texas economy. How has Texas’s economy exemplified the theory of creative destruction? In what ways has NAFTA affected the political economy of the state?
ANS:
Answers will vary.
DIF: Difficult REF: Economic Change in Texas
OBJ: Trace the evolution of Texas’s economy STA: 8
MSC: Analyzing
4. What have been some of the major demographic changes in Texas over the years? What have been the different social and political experiences of the three main ethnic groups in Texas?
ANS:
Answers will vary.
DIF: Difficult REF: The People of Texas
OBJ: Explain how the population of Texas has changed over time
STA: 8 MSC: Analyzing
5. How will changes to the population and economy shape Texas state government in the future?
ANS:
Answers will vary.
DIF: Medium REF: The People of Texas
OBJ: Explain how the population of Texas has changed over time
STA: 8 MSC: Analyzing
6. Describe the distinct economy and development of the three major cities of Texas. How has urbanization changed the character of Texas?
ANS:
Answers will vary.
DIF: Medium REF: Urbanization
OBJ: Describe Texas’s shift from a rural society to an urban one
STA: 8 MSC: Applying
y
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Test Bank Goulds Pathophysiology for the Health Professions 5th Edtion
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Chapter 01: Introduction to Pathophysiology
Test Bank
MULTIPLE CHOICE
1. Which of the following would be the most likely cause of an iatrogenic disease?
a.
An inherited disorder
b.
A combination of specific etiological factors
c.
An unwanted effect of a prescribed drug
d.
Prolonged exposure to toxic chemicals in the environment
ANS: C REF: 6
2. The manifestations of a disease are best defined as the:
a.
subjective feelings of discomfort during a chronic illness.
b.
signs and symptoms of a disease.
c.
factors that precipitate an acute episode of a chronic illness.
d.
early indicators of the prodromal stage of infection.
ANS: B REF: 6
3. The best definition of the term prognosis is the:
a.
precipitating factors causing an acute episode.
b.
number of remissions to be expected during the course of a chronic illness.
c.
predicted outcome or likelihood of recovery from a specific disease.
d.
exacerbations occurring during chronic illness.
ANS: C REF: 7
4. Which of the following is considered a systemic sign of disease?
a.
Swelling of the knee
b.
Fever
c.
Pain in the neck
d.
Red rash on the face
ANS: B REF: 6
5. Etiology is defined as the study of the:
a.
causes of a disease.
b.
course of a disease.
c.
expected complications of a disease.
d.
manifestations of a disease.
ANS: A REF: 5
6. A type of cellular adaptation in which there is a decrease in cell size is referred to as:
a.
hypertrophy.
b.
metaplasia.
c.
anaplasia.
d.
atrophy.
ANS: D REF: 8
7. A change in a tissue marked by cells that vary in size and shape and show increased mitotic figures would be called:
a.
metaplasia.
b.
atrophy.
c.
dysplasia.
d.
hypertrophy.
ANS: C REF: 8
8. A deficit of oxygen in the cells usually due to respiratory or circulatory problems is called:
a.
apoptosis.
b.
ischemia.
c.
hypertrophy.
d.
necrosis.
ANS: B REF: 9
9. When a group of cells in the body dies, the change is called:
a.
ischemia.
b.
gangrene.
c.
hypoxia.
d.
necrosis.
ANS: D REF: 10
10. Rigorous weight lifting/body building regimens may result in the skeletal muscle cells undergoing:
a.
hypertrophy.
b.
dysplasia.
c.
atrophy.
d.
regeneration.
ANS: A REF: 8
11. The term cancer refers to:
a.
dysplasia.
b.
hyperplasia.
c.
metaplasia.
d.
malignant neoplasm.
ANS: D REF: 9
12. To which of the following does the term apoptosis refer?
a.
Increased rate of mitosis by certain cells
b.
Ischemic damage to cells
c.
Liquefaction of necrotic tissue
d.
Preprogrammed cell self-destruction
ANS: D REF: 9
13. Which of the following statements is TRUE?
a.
Alteration of DNA does not change cell function.
b.
Damaged cells may be able to repair themselves.
c.
All types of cells die at the same rate.
d.
Mild ischemia causes immediate cell death.
ANS: B REF: 10
14. Caseation necrosis refers to an area where:
a.
cell proteins have been denatured.
b.
cell are liquefied by enzymes.
c.
dead cells form a thick cheesy substance.
d.
bacterial invasion has occurred.
ANS: C REF: 10
15. Routine application of sun block to skin would be an example of:
a.
an iatrogenic cause of cancer.
b.
a preventive measure.
c.
a precipitating factor.
d.
a predisposing condition.
ANS: B REF: 6
16. A circumstance that causes a sudden acute episode of a chronic disease to occur is termed:
a.
latent stage.
b.
predisposing factor.
c.
incidence.
d.
precipitating factor.
ANS: D REF: 7
17. The term homeostasis refers to:
a.
the causative factors in a particular disease.
b.
maintenance of a stable internal environment.
c.
a condition that triggers an acute episode.
d.
a collection of signs and symptoms.
ANS: B REF: 2
18. Which term is used to describe a new and secondary or additional problem that arises after the original disease has been established?
a.
Symptoms
b.
Occurrence
c.
Manifestations
d.
Complication
ANS: D REF: 7
19. Pathophysiology involves the study of:
a.
the structure of the human body.
b.
the functions of various organs in the body.
c.
functional or structural changes resulting from disease processes.
d.
various cell structures and related functions.
ANS: C REF: 2
20. Which of the following is the best definition of epidemiology?
a.
The science of tracking the occurrence and distribution of diseases
b.
The relative number of deaths resulting from a particular disease
c.
Identification of a specific disease through evaluation of signs and symptoms
d.
The global search for emerging diseases
ANS: A REF: 7
21. Which of the following can cause cell injury or death?
1. Hypoxia
2. Exposure to excessive cold
3. Excessive pressure on a tissue
4. Chemical toxins
a.
1, 2
b.
2, 4
c.
1, 3, 4
d.
1, 2, 3, 4
ANS: D REF: 9
22. All of the following are part of the Seven Steps to Health EXCEPT:
a.
follow cancer screening guidelines.
b.
use sun block agents whenever exposed.
c.
participate in strenuous exercise on a regular daily basis.
d.
choose high fiber, lower fat foods.
ANS: C REF: 2
23. The term disease refers to:
a.
the period of recovery and return to a normal healthy state.
b.
a deviation from the normal state of health and function.
c.
the treatment measures used to promote recovery.
d.
a basic collection of signs and symptoms.
ANS: B REF: 2
24. A collection of signs and symptoms, often affecting more than one organ or system, that usually occur together in response to a certain condition is referred to as a (an):
a.
acute disease.
b.
multiorgan disorder.
c.
syndrome.
d.
manifestation.
ANS: C REF: 7
25. All of the following statements are correct about cell damage EXCEPT:
a.
The initial stage of cell damage often causes an alteration in metabolic reactions.
b.
If the factor causing the damage is removed quickly, the cell may be able to recover and return to its normal state.
c.
If the noxious factor remains for an extended period of time, the damage becomes irreversible and the cell dies.
d.
Initially, cell damage does not change cell metabolism, structure, or function.
ANS: D REF: 9
26. Which of the following conditions distinguishes double blind studies used in health research?
a.
Neither the members of the control group or the experimental group nor the person administering the treatment knows who is receiving the experimental therapy.
b.
Both groups of research subjects and the person administering the treatment know who is receiving the experimental therapy.
c.
The research subjects do not know, but the person administering the treatment knows who is receiving placebo or standard therapy.
d.
Only members of the control group know they are receiving standard therapy.
ANS: A REF: 3 | 4
27. If the data collected from the research process confirm that the new treatment has increased effectiveness and is safe, this is called:
a.
the placebo effect.
b.
evidence-based research.
c.
blind research studies.
d.
approval for immediate distribution.
ANS: B REF: 4
28. A short-term illness that develops very quickly with perhaps a high fever or severe pain is called:
a.
acute.
b.
latent.
c.
chronic.
d.
manifestation.
ANS: A REF: 6
29. The term prognosis refers to the:
a.
period of recovery and return to a normal state.
b.
expected outcome of the disease.
c.
mortality and morbidity rates for a given population.
d.
typical collection of signs and symptoms.
ANS: B REF: 7
30. When prolonged ischemia occurs to an area of the heart, the resulting damage is referred to as:
a.
atrophy.
b.
liquefactive necrosis.
c.
apoptosis.
d.
infarction.
ANS: D REF: 10
31. During the evaluation process for a new therapy’s effectiveness and safety, a double blind study may be conducted during:
a.
the first stage.
b.
the second stage.
c.
the third stage.
d.
any of these stages.
ANS: C REF: 3
32. Why are the predisposing factors for a specific disease important to health professionals?
a.
To predict the prognosis
b.
To determine treatments
c.
To develop preventive measures
d.
To develop morbidity statistics
ANS: C REF: 3
33. Cell damage may be caused by exogenous sources such as:
a.
abnormal metabolic processes.
b.
certain food additives.
c.
genetic defects.
d.
localized hypoxia.
ANS: B REF: 9 | 10
34. Which of the following is usually included in a medical history?
1. Past illnesses or surgeries
2. Current illnesses, acute and chronic
3. Prescribed medication or other treatments
4. Nonprescription drugs and herbal remedies
5. Current allergies
a.
1, 3
b.
2, 4, 5
c.
1, 3, 4
d.
1, 2, 3, 4, 5
ANS: D REF: 4 | 5
35. A situation when there is a higher than expected number of cases of an infectious disease within a given area is called a/an:
a.
epidemic.
b.
exacerbation.
c.
morbidity.
d.
pandemic.
ANS: A REF: 7
36. The term pathogenesis refers to:
a.
the development of a disease or sequence of events related to tissue changes involved in the disease process.
b.
the determination of the cause(s) involved in the development of a malignant neoplasm.
c.
the specific signs and symptoms involved in the change from an acute disease to a chronic disease.
d.
the changes in cells of affected tissue that result in necrosis.
�� ANS: A REF: 6
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Test Bank Global Strategy 3rd Edition
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Chapter 1 – Strategizing Around the Globe
TEST BANK
TRUE/FALSE QUESTIONS
1. The opening case is an example of how the publishing industry now requires a simultaneous penetration of all markets rather than trying to win one market after another.
a. True b. False
AACSB: BUSPROG: Analytic; DISC: Strategy;
LO: 1-1; Bloom’s: Comprehension; Difficulty: Easy
2. In the opening case, the formal rules in China stated that foreign companies could not publish books on their own.
a. True b. False
AACSB: BUSPROG: Analytic; DISC: Environmental Influence
LO: 1-1; Bloom’s: Knowledge; Difficulty: Easy
3. In China, political correctness may need to be considered when making reference to Taiwan.
a. True b. False
AACSB: BUSPROG: Analytic; DISC: Environmental Influence LO: 1-1; Bloom’s: Knowledge; Difficulty: Easy
4. The closing case illustrates how to strategically focus on the base of the global economic pyramid and to do so successfully.
a. True b. False
AACSB: BUSPROG: Reflective Thinking; DISC: Strategy
LO: 1-3; Bloom’s: Comprehension; Difficulty: Easy
5. A SWOT analysis resonates very well with Sun Tzu’s teachings.
a. True b. False
AACSB: BUSPROG: Analytic; DISC: Strategy
LO: 1-3; Bloom’s: Analysis; Difficulty: Moderate
6. If a strategy (theory) is truly successful, it will work not just for one firm but for all others as well.
a. True b. False
AACSB: BUSPROG: Reflective Thinking; DISC: Strategy
LO: 1-4; Bloom’s: Application; Difficulty: Moderate
7. Determining the scope of the firm involves not only growth of the firm but also contraction.
a. True b. False
AACSB: BUSPROG: Analytic; DISC: Strategy
LO: 1-4; Bloom’s: Knowledge; Difficulty: Easy
8. The text stresses that realism indicates that all companies should “go global” and endeavor to do so as quickly as possible in view of the vast opportunities that exist.
a. True b. False
AACSB: BUSPROG: Reflective Thinking; DISC: Strategy
LO: 1-4; Bloom’s: Knowledge; Difficulty: Easy
9. The industry-based view posits that the degree of competitiveness in an industry largely determines firm performance.
a. True b. False
AACSB: BUSPROG: Analytic; DISC: Strategy
LO: 1-4; Bloom’s: Knowledge; Difficulty: Easy
10. The resource-based view suggests that firm-specific capabilities do not drive performance differences.
a. True b. False
AACSB: BUSPROG: Analytic; DISC: Strategy
LO: 1-4; Bloom’s: Knowledge; Difficulty: Easy
11. The institution-based view argues that institutional forces provide an answer to similarities in firm performance but not differences.
a. True b. False
AACSB: BUSPROG: Reflective Thinking; DISC: Strategy
LO: 1-4; Bloom’s: Knowledge; Difficulty: Easy
12. As illustrated by Cengage Learning’s penetration of the China market with Global Strategy (opening case), the idea that firms must “think global and act local” simultaneously is simply not possible.
a. True b. False
AACSB: BUSPROG: Reflective Thinking; DISC: Creation of Value
LO: 1-4; Bloom’s: Knowledge; Difficulty: Easy
13. The earliest MNEs existed in some form thousands of years ago in the Assyrian, Phoenician, and Roman empires.
a. True b. False
AACSB: BUSPROG: Analytic; DISC: Environmental Influence
LO: 1-5; Bloom’s: Knowledge; Difficulty: Easy
14. According to the text, today’s most successful MNEs far exceed the historical clout of some MNEs such as Britain’s East India Company during colonial times.
a. True b. False
AACSB: BUSPROG: Analytic; DISC: Creation of Value LO: 1-5; Bloom’s: Knowledge; Difficulty: Easy
15. During the second half of the twentieth century, Hong Kong, Singapore, South Korea, and Taiwan, refused to participate in the global economy and became known as the “Four Toothless Tigers.”
a. True b. False
AACSB: BUSPROG: Analytic; DISC: Motivation Concepts
LO: 1-5; Bloom’s: Knowledge; Difficulty: Easy
16. During the 1990s there was an increase in both global trade and opposition to global trade.
a. True b. False
AACSB: BUSPROG: Analytic; DISC: Strategy
LO: 1-5; Bloom’s: Knowledge; Difficulty: Easy
17. Semiglobalization involves doing business in either the northern or southern hemisphere but not both.
a. True b. False
AACSB: BUSPROG: Analytic; DISC: Strategy
LO: 1-5; Bloom’s: Knowledge; Difficulty: Easy
18. Beginning in the late 1990s and early twenty first century, a corporate governance crisis has developed.
a. True b. False
AACSB: BUSPROG: Analytic; DISC: Environmental Influence
LO: 1-5; Bloom’s: Knowledge; Difficulty: Easy
19. According to the text, business students may tend to focus more on the economic gains of globalization, and be less concerned with its darker sides.
a. True b. False
AACSB: BUSPROG: Reflective Thinking; DISC: Motivation Concepts
LO: 1-5; Bloom’s: Knowledge; Difficulty: Easy
20. A lot of opponents of globalization are nongovernmental organizations (NGOs), such as environmentalists and consumer groups.
a. True b. False
AACSB: BUSPROG: Analytic; DISC: Group Dynamics
LO: 1-5; Bloom’s: Knowledge; Difficulty: Easy
MULTIPLE CHOICE QUESTIONS
Multinational enterprises (MNEs) are firms that:
Engage in foreign direct investment (FDI).
Directly control value-adding activities in other countries.
Manage value-adding activities in other countries.
All of the above.
None of the above.
AACSB: BUSPROG: Analytic; DISC: Strategy
LO: 1-1; Bloom’s: Knowledge; Difficulty: Easy
Which of the following best describes foreign direct investment (FDI)?
A firm’s direct investment in production and/or service activities abroad.
The purchases of foreign securities by people within the U.S.
The purchases of U. S. securities by people from other countries.
Avoidance of brokers or other financial intermediaries when making foreign investments.
B and C above.
AACSB: BUSPROG: Analytic; DISC: Motivation Concepts
LO: 1-1; Bloom’s: Knowledge; Difficulty: Easy
Which of the following best defines “Triad” as the term is used in the text?
The U.S., Japan, and Germany.
The U.S., Canada, and Mexico.
North America, Europe, and Japan.
North America, Europe, and Asia.
The U.S. dollar, the Euro, and the Yen.
AACSB: BUSPROG: Analytic; DISC: Strategy
LO: 1-1; Bloom’s Knowledge; Difficulty: Easy
According to the text, the current brand of “global strategy” seems relevant only for MNEs from:
BRIC.
The Triad.
OPEC nations.
NAFTA.
The E. U.
AACSB: BUSPROG: Analytic; DISC: Strategy
LO: 1-1; Bloom’s: Knowledge; Difficulty: Easy
Emerging economies (or emerging markets):
Now command a full one-third of the worldwide FDI flow.
Command half of the global gross domestic product (GDP) measured at purchasing power parity.
A and B above
Despite their growth, they still command less than 10% of global GDP.
Consist of countries which are in a state of decline but which are believed to have potential for growth.
AACSB: BUSPROG: Analytic; DISC: Strategy
LO: 1-1; Bloom’s: Knowledge; Difficulty: Easy
BRIC refers to:
Bahrain, Russia, Iran, and China.
Bolivia, Romania, India, and Columbia.
Bulgaria, Romania, Iraq, and China.
Bermuda, Rwanda, Iraq, and the Czech Republic.
Brazil, Russia, India, and China.
AACSB: BUSPROG: Analytic; DISC: Strategy
LO: 1-1; Bloom’s: Knowledge; Difficulty: Easy
Many BRIC local firms are:
Effectively competing at home.
Launching offensives abroad.
Creating serious ramifications for Triad-based MNEs.
All of the above.
BRIC local firms have yet to become significant globally.
AACSB: BUSPROG: Analytic; DISC: Environmental Influence
LO: 1-1; Bloom’s: Knowledge; Difficulty: Easy
Strategy:
Dates back to 500bc and the work of the strategist Sun Tzu of China.
Applies concepts developed by the strategist von Clausewitz.
Includes application of principles of military strategy to business competition.
All of the above.
In this century, civilian companies no longer apply military theories and principles in dealing with competition.
AACSB: BUSPROG: Analytic; DISC: Strategy
LO: 1-3; Bloom’s: Knowledge; Difficulty: Easy
A hallmark of theory building and development is:
The outcome of a test.
Replication.
Intuition.
Consensus.
Lack of controversy.
AACSB: BUSPROG: Reflective Thinking; DISC: Creation of Value
LO: 1-3; Bloom’s: Analysis; Difficulty: Moderate
Overall, strategy is:
a. A rulebook.
b. A blueprint.
c. A set of programmed instructions.
d. All of the above.
e. None of the above.
AACSB: BUSPROG: Analytic; DISC: Strategy
LO: 1-3; Bloom’s: Knowledge; Difficulty: Easy
Much of our knowledge about “the firm” is from research on firms in:
Anglo-American capitalism.
Japan after World War II.
German mathematical models.
Emerging markets.
The early industrial era.
AACSB: BUSPROG: Analytic; DISC: Strategy
LO: 1-4; Bloom’s: Knowledge; Difficulty: Easy
The word _______has now become the most famous Chinese business word to appear in English-language media.
Keiretsu
Guanxi
Chaebol
Blat
None of the above.
AACSB: BUSPROG: Analytic; DISC: Strategy
LO: 1-4; Bloom’s: Knowledge; Difficulty: Easy
The _______ view primarily focuses on the ______ in a SWOT analysis.
Industry-based, OT
Resource-based, OT
Industry-based, SW
Resource-based, SW
Industry and resource, SWOT
AACSB: BUSPROG: Analytic; DISC: Strategy
LO: 1-4; Bloom’s: Comprehension; Difficulty: Moderate
As shown in the closing case, the informal rules of the game:
Must be avoided because global business is not a mere game.
Are not applicable in cultures in which tend to be very formal.
Often require that the firm seek to change the informal rules instead of going along with those rules.
Need to be understood by firms.
Are being replaced by formal rules.
AACSB: BUSPROG: Analytic; DISC: Strategy
LO: 1-4; Bloom’s: Knowledge; Difficulty: Easy
Diversification:
Was acclaimed in the West during the 1960s and 1970s but was discredited twenty years later.
Is believed by Western media to destroy value in emerging economies.
Has resulted in higher profitability for some in emerging economies than independent firms.
In emerging economies may be a function of the level of institutional (under) development.
All of the above.
AACSB: BUSPROG: Analytic; DISC: Creation of Value
LO: 1-4; Bloom’s: Analysis; Difficulty: Challenging
“Global strategy” refers to:
A particular theory on how to compete.
Offering standardized products and services on a worldwide basis.
Any strategy outside one’s home country.
Strategy of firms around the globe—essentially various firms’ theories about how to compete successfully.
All of the above.
AACSB: BUSPROG: Analytic; DISC: Strategy
LO: 1-3; Bloom’s: Knowledge; Difficulty: Moderate
Globalization is viewed as:
A new force sweeping through the world in recent times.
A long-run historical evolution since the dawn of human history.
A pendulum that swings from one extreme to another from time to time.
All of the above.
None of the above.
AACSB: BUSPROG: Analytic; DISC: Environmental Influence
LO: 1-5; Bloom’s: Knowledge; Difficulty: Moderate
Which of the following were the first to express concern about international competition from low-cost countries?
American political leaders in the twenty first century.
Union leaders in the last half of the twentieth century.
American business leaders in the late 1800s.
The King of England in the late 1700s.
A first century Roman emperor.
AACSB: BUSPROG: Reflective Thinking; DISC: Environmental Influence
LO: 1-5; Bloom’s: Knowledge; Difficulty: Easy
The current era of globalization originated in the aftermath of:
World War I.
World War II.
The Korean Conflict.
The Vietnam Conflict.
The Gulf War.
AACSB: BUSPROG: Analytic; DISC: Strategy
LO: 1-5; Bloom’s: Knowledge; Difficulty: Easy
At the dawn of the 21st century, __________ had significant ramifications for companies and strategists around the world.
Antiglobalization protests
Terrorist attacks
Corporate governance crisis
All of the above
None of the above
AACSB: BUSPROG: Analytic; DISC: Strategy
LO: 1-5; Bloom’s: Knowledge; Difficulty: Moderate
SHORT ANSWER ESSAY QUESTIONS
How can principles of military strategy be useful in developing a global business strategy? Explain by using SWOT analysis.
Students may point out that military strategy involves developing a clear idea of goals and objectives, an understanding of the barriers to achieving those objectives (such the opponents), the development of capabilities to overcome those barriers and the selection of the best alternative means of achieving the objectives under specific circumstances. Business firms can benefit by doing the same thing. They need to start by examining their current situation which includes an understanding of their internal strengths (S) and weaknesses (W) and how that can affect the strategy they use to deal with their external opportunities (O) and threats (T).
AACSB: BUSPROG: Analytic; DISC: Strategy
LO: 1-3; Bloom’s: Application; Difficulty: Moderate
The text points out that not all firms should go global. In view of the vast opportunities, why should some firms not pursue international business?
Many will point out that success in one market or part of the world does not assure that the firm will be able to be successful with its product and strategy in some other part. Much depends on whether it will be able to modify its product or its strategy so as to be successful in the country it seeks to enter. Timing may also be off either in terms of market readiness or development of the firm’s capabilities.
AACSB: BUSPROG: Reflective Thinking; DISC: Strategy
LO: 1-4; Bloom’s: Comprehension; Difficulty: Easy
Having valuable, unique, and hard-to-imitate capabilities may be advantageous in doing business globally. However, what is the problem with trying to maintain that advantage?
There are many possible ways to answer this question. Some may argue that it is much like being on a treadmill in which one must keep moving forward just to stay in place. What is valuable today may lose its value as changes occur in technology and markets. Other firms in other parts of the world may develop alternatives that imitate or even exceed one’s capabilities or render them no longer unique. As firms expand production around the world, they may in fact be helping to train others to compete with them.
AACSB: BUSPROG: Analytic; DISC: Strategy
LO: 1-4; Bloom’s: Comprehension; Difficulty: Easy
Why is there a backlash against globalization, and how do aspects of that backlash actually enhance globalization?
As the text points out, many incorrectly assume that globalization is a new force that is enabling emerging economics to take away both low-end manufacturing jobs high-end jobs as well while enabling MNE’s to destroy local companies, local cultures and values as well and the environment. NGO’s (Non Government Organizations) have focused on various abuses (real or alleged) and brought about a public debate regarding the relative positive and negative outcomes involved in globalization. As a result, social responsibility, ethics, and governance, long regarded as “backburners,” have now increasingly become central topics for strategy discussions. To the extent that MNE’s can effectively counter misunderstandings and positively respond to valid concerns, they may be able prevent or overcome barriers to global trade and investment.
AACSB: BUSPROG: Reflective Thinking; DISC: Environmental Influence
LO: 1-5; Bloom’s: Analysis; Difficulty: Challenging
As you examine the current political, social, and economic environment of your country and the world as of the moment you are reading the text, what is your estimate of the extent to which globalization will increase or decrease in the short run? In the long run?
The response is likely to be specific to the national and cultural background of the student and the major news events at the time the student is taking the course. The text has shown that there is a pendulum that tends to swing back and forth in regards to the acceptance or resistance of globalization but the long run trend appears to be moving toward greater globalization. However, the future is not always like the past and even long-term trends can be reversed. As a result, some students may have reasons why they feel that there will be increasing barriers to globalization in the future. Whatever the response, this question is one in which the answer is not as important as the thought process that goes into it.
AACSB: BUSPROG: Reflective Thinking; DISC: Environmental Influence
LO: 1-5; Bloom’s: Evaluation; Difficulty: Challenging
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Chapter 1 – Strategizing Around the Globe
CHAPTER OUTLINE
1. OPENING CASE: “The Global Strategy” of Global Strategy
Global Strategy—a text used by business schools in over 30 countries
1) Has generated two related books: Global Business and GLOBAL
2) Global Strategy—a comprehensive traditional textbook in international business
3) GLOBAL—a compact, innovative paperback
The publisher of Global Strategy
1) Published by South-Western Cengage Learning, a division of Cengage Learning—a leading publisher of business and economics textbooks
2) Number one in the world in terms of market share with annual sales of over $2 billion
3) Operates in over 35 countries
Strategy adopted by Cengage Learning to market Global Strategy
1) Is available in three other languages besides English
2) Targets courses that address the intersection between strategic management and international business—the first to address this intersection
3) Is available in the form of an e-book
4) Driven by the rapidly evolving market and commitment to meet ands exceed customer expectations
5) Focuses on the idea that teaching and learning are essentially “local”—the text has been modified to address specific issues pertaining to that geographic location
6) Includes new features on emerging markets and emerging multinationals added to every chapter
7) Uses local knowledge to avoid misunderstandings and legal troubles
2. A GLOBAL GLOBAL STRATEGY BOOK
The text itself is an example of a real global product that leverages its strengths, engages rivals, and competes around the world
It departs from the traditional understanding of global strategy, which is characterized by the production and distribution of standardized products and services on a worldwide basis
However, managers have been unable to successfully market a “world car” or a “world drink”
Multinational enterprises (MNEs), defined as firms that engage in foreign direct investment (FDI), are adapting their strategies, products, and services for local markets
It is imperative for a product to respond to local needs in order to avoid customer rejection
Examples of products that have been rejected by foreign markets
1) Ford Mondeo and Volkswagen Golf—strong in Europe, little visibility in North
America or Asia
2) Coke Classic tastes different around the world due to the varying sugar content
3) Coca-Cola’s commercial featuring polar bears met with indifference from consumers living in hot climatic conditions
A newer understanding of global strategy involves
1) An understanding that a “one-size-fits-all strategy is often incomplete and unbalanced as it:
(a) Sacrifices local responsiveness
(b) Ignores how domestic companies compete with each other and with other foreign entrants
2) The importance of emerging economies (or emerging markets)
(a) They command half of the worldwide FDI inflow and nearly half of the global gross domestic product (GDP) measured at purchasing power parity
(b) The BRIC [A1] (Brazil, Russia, India, and China) countries have emerged as powerful challengers to western nations
(c) A quarter of the worldwide FDI outflows are generated by emerging multinationals from emerging economies
(d) They cater to the vast majority which comprise the base of the economic pyramid—a segment ignored by traditional “global strategy”
3) MNEs from developed countries must realize that many opportunities exist at the BOP level and capitalize on them
4) New competitors from emerging economies can go after the second and top tier market overseas and can pose a serious challenge to MNEs from developed countries
3. WHY STUDY GLOBAL STRATEGY?
To enhance job and career opportunities
To help you deal with foreign-owned suppliers and buyers, compete with foreign-invested firms in your home market, and perhaps even sell and invest overseas
To avoid the negative aspects of globalization, especially the loss of jobs due to outsourcing
4. WHAT IS STRATEGY?
Derived from the Greek word strategos, which referred to the art of generalship
1) The application of the principles of military strategy to business competition is known as strategic management. This phenomenon developed in the 1960s
2) Sun Tzu, Chinese military strategist in 500 BC definition of strategy– “Know yourself, know your opponents; encounter a hundred battles, win a hundred victories.”
The definition of strategy has been a topic of debate. Three schools of thought have emerged to understand this concept. They are:
1) Strategy as plan
2) Strategy as action
3) Strategy as theory
Plan Versus Action
1) The strategy of plan school believes that strategy is embodied in the same rigorous formal planning as in a military strategy
2) The action school believes that strategy is a set of flexible goal-oriented actions. Along with the intended strategy there is also the emergent strategy that is the outcome of a series of smaller decisions from the “bottom up”
3) The essence of strategy is likely to be a combination of both- thus leading to a “strategy of integration” school
Strategy as Theory
1) Defines strategy as a firm’s theory about how to compete successfully
2) Borrows the idea of strategy formation from the planning school and the idea of strategy implementation from the action school, giving rise to a “strategy as integration” theory
3) Advantages of the “strategy as theory definition”
(a) It capitalizes on the insights of both the planning and the action schools
(b) It emphasizes the idea of “theory” which helps to explain the past and to predict the future
(c) Allows the possibility of replication—repeated testing of theory under a variety of conditions to establish its applicable boundaries
(d) If enough failures in testing a strategy are reported, managers will gradually drive out failed theories and introduce better ones
(e) The top management team led by the chief executive officer (CEO) must exercise leadership by making strategic choices
5. FUNDAMENTAL QUESTIONS IN STRATEGY
a. Why Do Firms Differ?
1) Most knowledge about firms comes from experiences in Western capitalist countries, but the business landscape is very different in Eastern countries like Japan
2) In countires like China, interpersonal networks and relationships (guanxi), cultivated by managers, may serve as informal substitutes for formal institutional support
b. How Do Firms Behave?
The determinants of firms’ theories about how to compete, the “strategy tripod”
1) Industry-based view—focuses on the external opportunities and threats faced by the organization
2) Resource-based view—focuses on the internal strengths and weaknesses of an organization
3) Institution-based view—argues that firms also need to take into account the influences of formal and informal rules
c. What Determines the Scope of the Firm?
1) Growth is an important objective for all firms
2) Growth beyond a certain limit is not possible—downsizing, downscoping, and withdrawals are often necessary
3) The scope of a firm pertains to growth as well as contraction
4) Product scope and geographic scope is important to an institution
d. What determines the success and failure of firms around the globe?
1) Each component of the strategy tripod offers different answers
(a) Industry-based view—the degree of competitiveness in the industry determines firm performance
(b) Resource-based view—firm-specific differences in capabilities create performance differences
(c) Institution-based view—institutional forces contribute to differences in firm performance
2) The true determinants of firm performance probably involve a combination of these three forces—industry-based competition, firm-specific resources and capabilities, and institutional conditions and transitions
3) Certain firms adopt a triple bottom line, which consists of economic, social, and environmental dimensions
4) A balanced scorecard—a performance evaluation method from the customer, internal, innovation and learning, and financial perspectives—can also be used to gauge success or failure
6. WHAT IS GLOBAL STRATEGY?
a. Definitions of “global strategy”
1) Providing standardized products and/or services on a worldwide basis (i.e. traditional view), usually relevant to large Triad-based MNEs
2) Can also refer to any strategy outside one’s home country
3) The definition used in this book: Global strategy is defined as strategy of firms around the globe—essentially various firms’ theories about how to compete successfully
7. WHAT IS GLOBALIZATION?
a. It is the close integration of countries and peoples of the world.
b. Supporters view it as resulting in greater economic growth, better standards of living, increased technology sharing, and extensive cultural integration
c. Critics argue that it is responsible for the global recession, undermines wages in rich countries, exploits workers in poor countries, and gives MNEs too much power
d. Three views of globalization have been offered:
1) A new force that has developed in recent times
(a) It is a new phenomenon which can be traced to the beginning of the 20th century
(b) It is driven by Western ideology focused on exploiting and dominating the world
(c) The arguments against globalization focus on an ideal world free of environmental stress, social injustice, and sweatshops
2) A phenomenon that has existed since the dawn of human history
(a) The earliest example of MNEs can be traced back to Phoenician, Assyrian and Roman times
(b) International competition from low-cost countries is not new
3) A pendulum that swings from one extreme to another from time to time
(a) It is an integration of the countries and peoples of the world brought about by the enormous reduction of the costs of transportation and communication
(b) It signifies the breaking down of artificial barriers to the flows of goods, services, capital, knowledge, and people across borders
(c) It is not recent or one-directional
e. The pendulum view on globalization
1) It gives a balanced and more realistic understanding of globalization, because it can help us understand the ups and downs of globalization
2) It suggests that globalization is unable to keep going in one direction
3) The view of globalization as a pendulum is more balanced and more realistic than the other two views
f. Semiglobalization
1) It chooses a middle ground between unilaterally opposing and unconditionally accepting globalization
2) It suggests that barriers to market integration at borders are high, but not high enough to completely insulate countries from each other
3) Semiglobalization has no single right strategy, resulting in a wide variety of strategic experimentations and changes
4) It calls for more than one way of strategizing business around the globe
8. GLOBAL STRATEGY AND THE GLOBALIZATION DEBATE
a. Challenges that confront strategists
1) Anti-globalization protests (Seattle, 1999)
2) Terrorist attacks/ the War on Terror (9/11)
3) The global financial crisis (2008) and the aftermath of the Great Recession
4) The Euro crisis (since 2010)
5) Natural calamities (earthquake in Japan,2011)
6) Occupy Wall Street (2011)
b. Many executives, policymakers, and scholars have failed to take into sufficient account the social, political, and environmental costs associated with globalization
1) Many of the opponents of globalization are nongovernmental organizations (NGOs) such as environmentalists, human rights activists, and consumer groups
2) Current and would-be business leaders need to be aware of their own biases embodied in such one-sided views toward globalization
CHAPTER ONE - LECTURE NOTES AND TEACHING TIPS
SUMMARY OF THE Opening Case
: The Global
Strategy of Global Strategy
The opening case looks at the strategy adopted by Cengage Learning to market “Global Strategy,” a popular text used by a number of business schools.
Teaching Tip: Ask students to respond to the following case discussion questions. (Possible answers are included in italics):
What are the factors that have lead to the successful marketing of “Global Strategy?”
“Global Strategy” is a text that has been used by business schools in over 30 countries and is available in Chinese, Spanish, and Portuguese, besides English. It has spawned two related books: “Global Business” and “GLOBAL.” All these books are published by South-Western Cengage Learning, a division of Cengage Learning, a global company with annual sales of over $2 Billion. In business and economic textbooks, South-Western Cengage Learning is number one in terms of market share.
“Global Strategy” targets courses which combine strategic management with international business. This was the first textbook to specifically address their intersection. The text received positive reviews from enthusiastic students and professors from all over the world. Besides the print version, “Global Strategy” is also available as an e-book. Capitalizing on the digital revolution, the Kindle version has been available since the second edition. Another strategy used by Cengage was to rethink its contents for non-Western contexts. An attempt has been made to “localize” texts. The publishers learn, test the market, engage with customers, and aspire to improve the text. Under-covered regions like Latin America and Africa are featured to make “Global Strategy” truly global. New features on emerging markets and emerging multinationals have been added to every chapter. Finally, to successfully compete in a global market, awareness of social and legal rules is absolutely essential. Cengage Learning has successfully collaborated with local partners to achieve this.
How did Cengage Learning tailor its selling strategies to the needs of the Chinese market?
To successfully compete in a global market, awareness of social and legal rules is absolutely essential. In some countries like China, foreign publishers are not allowed to publish books on their own. Cengage Learning, therefore, licensed the translation of “Global Strategy” to a leading Chinese publisher: Posts and Telecom Press. Further, the law in China dictates that all books published must pass political censorship. The title was changed to “Global Business Strategy” on the advice of the Chinese publisher, to avoid potential confusion, as political censors might have perceived the textbook as being about global military strategy. Subtle local knowledge helped Cengage to negotiate with the Chinese market.
A GLOBAL GLOBAL STRATEGY BOOK
Teaching Tip: Ask students to provide some examples, from their own experience, of products and/or services that did not seem to be designed with their needs in mind. Students might mention the desks in which they sit, the backpacks they use to carry their books, the notebooks they use in class, or even their cars. What is it that does not quite work for them? Is it something about the car’s interior that seems made for a smaller individual, for example? If they have difficulty coming up with examples, ask them to focus on products/services related to school, entertainment, etc.
Also ask students if they would like to buy products that did not fit their needs or solve their problems. Why might companies like Coca-Cola, Toyota, and Ford try to develop and sell products that are standardized all over the world? Why might people in other countries not be satisfied with products that were developed for the US market and not designed to meet local needs? When is this most often a problem (that is, for what types of products are local tastes probably most important?)
Multinational enterprises (MNEs) have sometimes learned the hard way that products or services that are popular in one country or region are frequently rejected by customers elsewhere. The narrow, “one-size fits all” version of global strategy advocated over the past twenty years in global strategy texts is incomplete and unbalanced for the following reasons: 1) Too often the search for worldwide cost reduction, consolidation, and restructuring sacrifices local responsiveness and global learning; 2) The traditional, narrow notion of global strategy ignores how domestic firms compete with each other and with foreign entrants and 3) It is dangerous to ignore less developed economies.
WHY STUDY GLOBAL STRATEGY?
Teaching Tip: Ask students to identify three reasons why it might be helpful for them to study global strategy. Their answers might range from the fact they need this course to graduate, or they have traveled extensively (or want to travel) and want to have a better understanding of business in other countries, or perhaps they might work for a global firm after graduation, etc. The key is to help students see that there is something in it for them to work hard and understand what global strategy is all about.
Most business school graduates will eventually be faced with foreign-owned suppliers, customers, and/or competitors, as well as being involved with selling and investing overseas. Likewise, many graduates will end up working for a foreign-owned corporation, and some may experience downsizing due to global consolidation. Understanding global business may help graduates to minimize or avoid such aspects of globalization.
WHAT IS STRATEGY?
Teaching Tip: Ask students to look up the meaning of the word “strategy.” Most dictionaries define strategy as a plan of action or policy formulated to achieve an aim. Alternatively, it is defined as the art of planning military operations. As a hands-on exercise, ask students to develop a strategy to sell a product online. They would have to consider multiple aspects: the product and its variations, the pricing for the product, the regions in which the product will be offered, and how product and pricing will differ in these regions.
Derived from the ancient Greek word strategos, the word has strong military roots. Sun Tzu, a 500 BC Chinese military strategist in his book The Art of War provides an appropriate definition. It is to “know yourself, know your opponents; encounter a hundred battles, win a thousand victories.” The application of the principles of military strategy to business competition, known as strategic management, is a recent development which can be traced to the 1960s. “Strategy as plan” and “strategy as action” are the two schools of thought that allow us to make sense of the term. The “strategy as plan” school of thought suggests that strategy is embodied in the same explicit rigorous formal planning as in the military. The “strategy as action” school believes strategy is a set of flexible goal-oriented actions. In addition to the intended strategy, there exists an emergent strategy which emerges as the outcome of smaller decisions from the “bottom up.” However, this text uses the insights offered by the “strategy as integration” school is followed and it is defined as a firm’s theory about how to compete successfully and global strategy is defined as a strategy of firms around the globe.
FUNDAMENTAL QUESTIONS IN STRATEGY
Teaching Tip: Ask students to discuss, in their own words, the appropriateness of the four fundamental questions that this text aims to address. You could also ask students to describe the connections between these four questions and strategy.
In an effort to focus attention on the most crucial aspects of global strategy, this text addresses four fundamental questions: Why do firms differ? How do firms behave? What determines the scope of the firm? What determines the international success and failure of firms?
Teaching Tip: Ask students to think of a few examples of companies that have recently changed their scope, either by making an acquisition, opening up a new store in the area, entering a new market, laying off workers, or closing down stores/plants, etc. Then ask students to generate ideas about why these companies decided it was necessary to change their scope. You might want to have students write their ideas on the chalkboard or an overhead slide. Students might come up with reasons such as cutting costs, gaining new customers, increasing brand awareness, paying down their debt, gaining access to new core competencies, strengthening brand image, etc.
All firms, just like individuals, differ. Cultural differences between the East and the West influence how firms react to situations. Three perspectives or the strategy tripod offer an explanation of how firms behave. The industry-based view focuses on the external opportunities and threats faced by an organization whereas the resource-based view concentrates on the internal strengths and weaknesses of the firm. The institution-based view, in addition to industry-level and firm-level conditions, focuses on the impact of government policies and economic reforms on the performance of firms.
The scope of a firm is determined not only by its growth but also to the contraction of the firm. Continuous growth is not sustainable; downsizing, downscoping, and withdrawals are sometimes inevitable in a firm’s history. The “strategy tripod” attempts to understand the success and failure of firms around the globe. The industry-based view posits that the degree of competitiveness in an industry largely determines firm performance. The resource-based view suggests that firm-specific capabilities drive performance differences. The institution-based view argues that institutional forces also provide an answer to difference in firm performance.
The author concludes that all three perspectives provide insight into the forces that determine firm performance. The complexity of global competition leads managers all over the world to struggle with finding the best ways to achieve high performance.
WHAT IS GLOBAL STRATEGY?
Teaching Tip: Ask students to compare and contrast the three definitions of global strategy using a real-life example.
The traditional, narrow notion of global strategy refers to a particular theory on how to compete that centers on providing standardized products and services on a worldwide basis. This definition is relevant for large multinational companies based in North America, Europe, or Japan and competing in a variety of countries; but not applicable to smaller firms in developed economies or most firms in emerging markets. Another use of the term “global strategy” is similar to the term “international strategy” and refers to any strategy outside a firm’s home country.
In this book, global strategy is defined as a strategy of firms around the globe (whether they are large MNEs or smaller firms)—in other words—each firm’s theory about how to compete successfully in whatever country markets they choose to enter. As a result of this more inclusive view of global strategy, this text will provide a balanced coverage of domestic and foreign entrants in a variety of developed and emerging economies.
WHAT IS GLOBALIZATION?
Teaching Tip: In this section, three different views of globalization are suggested, one that sees globalization as a recent phenomenon driven by technological innovations in transportation and communication, another recognizes the early historical roots of globalization, and a third is likened to a pendulum that swings from one extreme to the other. Semiglobalization chooses a middle ground between unconditional acceptance of globalization and opposition. Ask students which of these views of globalization they prefer and why.
The critical view, like anti-globalization protesters, argues that the current rate of globalization should be slowed down, so that Western MNEs do not exploit and dominate the world. This view also argues that globalization undermines wages in rich countries, exploits workers in poor countries; compromises human rights; devastates the environment, diminishes national sovereignty, and gives large MNEs too much power.
The second view contends that globalization has always been a part of human history, as exhibited by MNEs in the Assyrian, Phoenician and Roman empires. The third view argues that enormous reductions in transportation and communication costs have allowed countries and peoples around the world to be more closely integrated. It has led to the dismantlement of many artificial barriers to the flow of goods, services, capital, knowledge, and labor across country borders. The pendulum view suggests, however, that globalization is unable to keep going in one direction. Rapid globalization in the 1990s saw some significant backlash.
Teaching Tip: Ask students to describe some examples of the backlash against globalization that have occurred in the late 1990s and early 2000s.
· People in developed countries started to fear the loss of low-end manufacturing jobs—as well as high-end, high-tech jobs.
· Some people in emerging economies have also complained that large MNEs destroy local cultures, values, the environment and the ability of local firms to compete.
· The current backlash against globalization has been fueled by resentment of people in countries like Indonesia, South Korea and Thailand.
· People in Indonesia, South Korea and Thailand also resent the International Monetary Fund’s (IMF) rescue policies.
· Small-scale acts of vandalism against corporate symbols like McDonalds have been reported in many countries.
· Anti-globalization protests in Seattle in December 1999 and September 2001 terrorist attacks in New York and Washington have been the most extreme signs of the backlash against globalization.
The current state of globalization can be summarized as semi-globalization—barriers to market integration at borders are high, but not high enough to completely insulate countries from each other. Likewise, globalization has both dark and rosy sides, yet companies must still find ways to productively engage in globalization efforts.
GLOBAL STRATEGY AND THE GLOBALIZATION DEBATE
In this section the author describes the enormous challenge that strategists face as they look for viable ways to compete in the world of semi-globalization. In order to develop successful strategies, managers must understand the world economy and recent events that have changed the competitive landscape. A number of challenges confront strategists. These include anti-globalization protests, terrorist attacks, natural calamities, the Global financial crisis and the Great Recession.
Knowing yourself and your opponents requires understanding strengths AND limitations, and recognizing the social, political, and environmental costs associated with globalization. Note that current business school students exhibit values and beliefs that favor globalization which may be different from the general public, be aware of bias and strategic blind spots, and do not ignore non-government organizations (NGOs), view them as partners.
Teaching Tip: Ask students to find the current rankings of the world’s largest economies and companies by visiting the World Development Indicators database at (www.worldbank.org) and the Fortune website (www.fortune.com) for the Fortune Global 500. Are there any surprises on that list? Notice the firms from emerging economies such as China and India.
Teaching Tip: Ask students to prepare their own summary of the key points that they learned in this chapter. Are there any ideas expressed in the chapter that students are confused about? What do they think about the global perspective of strategy that the author advocates in this book?
POSSIBLE ANSWERS TO CRITICAL DISCUSSION QUESTIONS
1. A skeptical classmate says: “Global strategy is relevant for top executives such as CEOs in large companies. I am just a lowly student who will struggle to gain an entry-level job, probably in a small company. Why should I care about it?” How do you convince her that she should care about global strategy?
Ask her to list the products that she uses in her daily life that are made outside her home country. This exercise might create some awareness that as a consumer, she is already participating in the global economy. She will be able to make better decisions about the products she purchases if she has a better understanding of the choices that firms must make when they sell their products in other countries.
You could also ask her to identify the brands she uses—jeans, shoes, music player, mobile phone, computer, etc. Many of these brands will probably be made by firms in foreign markets. If they do not understand how to implement effective strategies, she might have to find new brands to buy in the future. You could also encourage her to think about the kind of job she might want to have five or ten years from now—what industry will that job be in? Will there be domestic as well as foreign firms competing in that industry? Will other job candidates have more exposure to global strategy than she has, thus causing her to miss out on exciting employment or career opportunities?
2. Some argue that globalization benefits citizens of rich countries. Others argue that globalization benefits citizens of poor countries. What are the ethical dilemmas here? What do you think?
Students could take any perspective on this question, or argue that globalization doesn’t have to be an either-or proposition—it can help people in poor as well as rich countries. Some might argue that globalization gives customers in rich countries more choices, as well as forcing all firms, foreign and domestic, to be more competitive in terms of the pricing and quality of their products and services. Likewise, globalization can stimulate economies in rich countries as domestic firms export their goods and services and increase the standard of living at home and abroad. Globalization can also create jobs in rich countries. It is also true, however, that jobs are often outsourced to workers in other, poorer countries, although evidence suggests that displaced workers do find work, and sometimes at a comparable wage. Firms certainly become more efficient and should be able to increase employment in other departments.
Ethical dilemmas can arise in the sense that even if citizens of both rich and poor countries benefit, there will likely be people in both types of countries that are losers. Not all who lose jobs will find others that are comparable, for example. Although the number of those who benefit may outnumber those who do not, those who lose may not be comforted by the gains of the majority.
Globalization can also help rich countries gain access to innovations developed in poorer countries, innovations that show how to use resources more wisely or how to have a less adverse impact on the environment, or just how to serve the low end of the market effectively (such as Proctor and Gamble’s successful use of the single-use sachet of Rejoice shampoo in China). As companies develop alliances with foreign firms, globalization efforts can also help people in rich countries develop a better understanding of their neighbors who live in poorer countries. By building supportive relationships and alliances with those whose life experience is different from theirs, it may be possible to create a world that is more peaceful and less plagued by conflicts over land, property, religious beliefs, tribalism, etc.
Some students might also add that people in poorer countries are the primary beneficiaries of globalization because of job creation, the development of infrastructure such as telecommunications and transportation, and the increase in the standard of living that often occurs as foreign firms invest in poorer countries. Globalization also gives people in poorer countries more choices—choices about how and where to earn a living, as well as choices about how to spend the income they earn. Globalization also encourages governments to follow international standards when it comes to human rights, financial transparency, etc. Globalization has the potential to help individual people, as well as whole nations overcome poverty. In China alone, since the reforms initiated by Deng Xiao Ping in 1978, about 400 million people have been lifted out of poverty—the biggest and broadest increase in wealth in human history. And this was done not be central planning, trade barriers or welfare, but by the introduction of capitalism (the responsibility system for farmers and small businesspeople) and extensive foreign direct investment (i.e. globalization).
3. Critics argue that MNEs, through FDI, allegedly both exploit the poor in poor countries and take jobs away from rich countries. If you were the CEO of an MNE from a developed economy or from an emerging economy, how would you defend your firm?
Once again students’ answers will vary depending on their perspective. Those who support globalization might argue that providing jobs to people in poor countries who have no other options to earn a living and support their families, does not qualify as exploitation. MNEs can also take steps to ensure that workers are treated fairly and humanely, no matter what country they are in or how poor they are. Many MNEs from rich countries would not be able to compete effectively if they were not allowed to produce products in poorer countries and sell them back home. Customers at home in rich countries would also have fewer choices and pay higher prices if foreign competitors were not allowed to sell their products/services. It might also be important to note that customers in rich countries share some responsibility for the exploitation of workers in poorer countries—we want prices for the products we buy to be as low as possible while maintaining satisfactory levels of quality. Sometimes large MNEs elect to move their manufacturing facilities to poorer countries because they are not efficient enough at home to offer the competitive prices that we demand.
TOPICS FOR EXPANDED PROJECTS
1. The 2008 global financial crisis and the Great Recession since then have been devastating. However, not all industries and not all firms suffer. Some may profit from these events. Write a short paper describing how some industries and firms may profit from the crisis and the recession.
Answers might vary. According to Michael Walden, an economist from N.C. State University, the recession has an impact on everyone. Firms will sell less, there will be a lower profit margin, workers will have to agree to a cut in their pay and companies will be downsizing. But not everyone is affected by recession. Some companies may actually benefit from recession. Walden gives the example of the automobile industry. People may not want to buy new cars. That would mean they would be interested in maintaining their existing cars; this would mean that car mechanics and repair shops will make a lot of money. Similarly, people would not buy new property, but they might consider remodeling their existing homes. So companies in the business of remodeling and home improvement will definitely benefit from this situation.
Students could be asked to look at companies like Tupperware which did very well during the recession. Customers were saving more of everything including leftovers and Tupperware introduced new containers manufactured keeping in mind the oxygen levels required by leftovers. Other examples would be unbranded goods or stores dealing in second hand goods. Of course, companies dealing with bankruptcies and debt problems would certainly benefit from recession.
2. As the CEO of an MNE from an emerging economy, use the “strategy tripod” to analyze what the leading challenges for your firm’s internationalization will be. Present your analysis in the form of a short paper or visual presentation.
Answers will depend on the students’ choice of the product that they are aspiring to market. The “strategy tripod” comprises three leading perspectives that provide us with insights into the behavior of firms. The industry-based view focuses on the external opportunities and threats faced by an organization whereas the resource-based view concentrates on the internal strengths and weaknesses. The institution-based view, in addition to industry-level and firm-level conditions, focuses on the impact of government policies and economic reforms on the performance of firms.
3. What are some of the darker sides (in other words, costs) associated with globalization? How can strategists make sure that the benefits of their various actions outweigh their drawbacks (such as job losses in developed economies and environmental damage in emerging economies)?
Costs associated with globalization include:
· The loss of domestic jobs as companies move their manufacturing and distribution facilities to other countries in order to reduce costs and improve profit margins;
· The loss of some ability to control quality as companies outsource manufacturing, which may lead to product liability problems if defects are not caught and fixed before products are sold to end users;
· Unanticipated costs, such as those associated with gaining access to foreign distribution channels or finding local suppliers of necessary raw materials, natural resources, or other supplies;
· Increased exposure to political risks, such as war, government takeover of foreign assets, bribery of government officials, etc.
· Lack of familiarity with the needs of foreign customers, that may require increased expenditures in market research;
· Employment laws, product liability, tax policies and environmental regulations that differ from one country to another. Companies may incur increased costs as they try to figure our how various laws impact their business;
· Additional costs incurred to coordinate and monitor performance across units when companies have business units scattered around the world;
· Exposure to more competition—companies may become distracted by trying to win the battle in foreign markets—as a result, their position at home may deteriorate;
· Differing laws to protect consumers in different countries. If a company sells products that harm customers in another country, there may be a negative reaction in the home market and demand may decline;
· Difficulty in monitoring actions and decisions across many countries to ensure that they are in line with corporate goals and objectives;
Some things that companies can do to ensure the benefits of their actions outweigh the drawbacks are as follows:
· Identify ways to develop new products/services and/or production processes that have a minimal adverse impact on the environment;
· Hire local residents to be managers, as well as serve in other positions, which helps to gain local knowledge and avoid blunders;
· Develop and follow a code of ethics—incorporate that code of ethics into performance evaluation processes;
· Develop strategic alliances with firms from different countries, learn how to cooperate effectively to satisfy customer needs;
· Develop products and services that people can afford, regardless of whether they live in a poor, emerging economy or a rich, developed one;
· Increase the standard of living and improve working conditions in foreign factories;
· Ensure that people have adequate health care, regardless of where they live;
· Find ways to be profitable and behave ethically at the same time;
· Increase efficiency and reduce waste that is conceptually close to the cost and efficiency savings from automation (e.g. fewer inputs, same, or even greater, output).
Closing CASE: Emerging Markets: Microsoft’s Evolving China Strategy
OVERVIEW
Microsoft’s first decade in China was disastrous. In 1995, Microsoft had its own subsidiary. The firm realized that it didn’t have a market share problem—everybody was using Windows. Except that most of them were using pirated versions. Microsoft‘s attempt to sue the violators proved counterproductive. It was expensive as they frequently lost lawsuits and the Chinese government openly promoted the free open-source Linux operating systems. The Chinese government was afraid that Microsoft’s software might contain spyware for the U.S. government. Efforts to find a solution proved futile and frustrating.
In the mid 2000s, the Chinese government had made it mandatory for all government agencies to use legal software and all PC manufactures to load legal software before selling to consumers. Prior to this, Lenovo, the leading domestic maker, had only shipped about 10% of its PCs that way. The rest of the PCs were sold “naked”, inviting their customers to use cheap illegal software.
This breakthrough was achieved through Microsoft’s persistent efforts to capture the Chinese market. In its second decade in China, its strategy radically altered. In China, it became the “un-Microsoft”: pricing at rock bottom instead of insisting on one very high “global price,” abandoning the confrontational, litigious approach in defense of its intellectual property rights (IPR), and closely partnering with the government as opposed to fighting it.
Microsoft’s China strategy has invited a lot of criticism. “Does Microsoft need China?” question was raised. Opinion was divided. Some members of Microsoft’s think tank were of the opinion that the company did not need China and losing China would not impact it any way. However, China’s support of Linux could pose dangers to Microsoft. Gates, in the early 2000s, rationalized that he would rather have the Chinese using pirated Microsoft software than having them use Linux.
Since 1998, a number of attempts have been made by Microsoft to woo the Chinese customer. In 2003, Tim Chen, a superstar China manager at Motorola, was hired as Corporate Vice President and CEO of Greater China Region for Microsoft. Led by Chen, Microsoft quit suing people and tolerated piracy. Instead, it worked with the National Development Reform Commission to build a software industry, with the Ministry of Information Industry to jointly fund labs, and with the Ministry of Education to finance computer classrooms in rural areas. In response to Chinese government concerns about the alleged US government spyware embedded in Microsoft’s software, in 2003 the firm offered China (and 59 other countries) the fundamental source code for Windows and the right to substitute certain portions with local adaptation—something Microsoft had never done before. Only after such sustained and multidimensional efforts did the Chinese government bless Microsoft’s business by requiring that only legal software be used by government offices and be loaded by PC makers. A legal package of Windows and Office apparently costs only $3.
Microsoft now has its own five-year plan to match the Chinese government’s plans. But it continues to share an uneasy relationship with the Chinese government. Problems have erupted on two fronts. First, Microsoft continues to be frustrated by the lack of sufficient progress on IPR. Second, Microsoft has been criticized by free speech and human rights activists for its “cozy” relationship with the Chinese government.
Possible Answers to Case Discussion Questions
1. From an industry-based view, why does Microsoft feel threatened by Linux in China and globally?
The industry-based view focuses on the external opportunities and threats faced by an organization. The opportunity for Microsoft was capturing the Chinese market with a population of over 1.3 billion. The threat was from Linux, an operating system that is available free of cost. In order to sustain its business, Microsoft needed to find innovative ways to compete with a similar service which was available absolutely free.
2. From a resource-based view, what valuable and unique resources and capabilities does Microsoft have in the eyes of the Chinese users and the government?
The resource-based view concentrates on internal strengths and weaknesses. Microsoft used its considerable resources to formulate a strategy on China. It has worked with the National Development Reform Commission to build the software industry. It has collaborated with the Ministry Information Industry and the Ministry of Education to fund labs and to finance computer classrooms in rural areas. It has invested close to $100 million in local firms. It has reworked its pricing strategy and its software is apparently available at $3.
3. From an institution-based view, what are the major lessons from Microsoft’s strategic changes?
The institution-based view, in addition to industry-level and firm-level conditions, focuses on the impact of government policies and economic reforms on the performance of firms. Microsoft realized that the only way to succeed in China was to collaborate with the government. A strategy which was confrontational proved futile and costly. The Chinese government paranoid about security openly promoted Linux.
In the mid-2000s, Microsoft changed its strategy completely. It abandoned its confrontational, litigious approach in defense of its intellectual property rights. In response to the Chinese government concerns about the alleged U.S. government spyware in Microsoft’s software in 2003, the firm offered China the fundamental source code for Windows and the rights to substitute certain portions with local adaptation - an unprecedented offer in Microsoft’s history.
4. From a “strategy as theory” perspective, why is it hard to change strategy? How are strategic changes made?
The “strategy as theory” perspective integrates both the planning and the action schools. It emphasizes the concept of theory which is used to explain an outcome and predict the future. This perspective also realizes that a particular theory that is successful in a particular context may not be successful elsewhere. It helps us understand why it is often difficulty to change strategy. Dogma and resistance to change can prevent companies from changing their strategies. In the context of China, Microsoft’s confrontational, litigious approach did not work. It was forced to change its strategy in order to make its presence visible in China. Collaborating with government agencies and offering to share its source code were some of the ways used by Microsoft to win over the Chinese government.
5. As a Microsoft spokesperson, how do you respond to free speech and human rights critics?
Answers might vary. This controversy was first debated when it was discovered that technology sold by Microsoft to the Chinese government had been used to censor the Internet. Amnesty International has accused Microsoft of helping China to imprison its political opponents. Microsoft’s response has been weak. It almost borders on shirking of responsibility. A spokesperson claimed that they were only in the business of delivering the “best technology” to people and could not control how this technology was used. In theory, however, Microsoft officially has claimed that it opposed censorship of the Internet. It is yet to come with a concrete plan of action to fight this.
[A1]South Africa is now part of this. BRICS
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Chapter 1: The Global Marketing Imperative
TRUE/FALSE
1. Firms that operate in North America (domestic only) pay significantly higher wages than international firms.
ANS: F PTS: 1 DIF: Moderate REF: Page 4
2. In the definition of global marketing, the major foundation of this process is the planning, coordination, and integration of marketing activities across multiple country markets.
ANS: T PTS: 1 DIF: Easy REF: Page 5
3. Due to their greater profitability and longevity, workplace security is greater for employees working for local firms than for those working for global firms.
ANS: F PTS: 1 DIF: Moderate REF: Page 4
4. In global marketing, the firm is no longer dealing with a familiar set of cultural, social, economic, political, and market conditions.
ANS: T PTS: 1 DIF: Easy REF: Page 5
5. Those who do not participate in global marketing transactions are still exposed to global marketing and subject to its changing influences.
ANS: T PTS: 1 DIF: Moderate REF: Page 10
6. Wider market reach and more customers have resulted in international firms achieving lower costs and higher profits abroad in comparison to home.
ANS: F PTS: 1 DIF: Difficult REF: Page 3
7. To achieve success in the art of international marketing, it is necessary to know a lot about its technological aspects.
ANS: F PTS: 1 DIF: Difficult REF: Page 11
8. Given all the advantages of global marketing, all practitioners are eager to participate in the international market.
ANS: F PTS: 1 DIF: Moderate REF: Page 4
9. Global marketing is a result of the recognition of the potential advantages of strategy integration across country’s markets.
ANS: T PTS: 1 DIF: Easy REF: Page 12
10. The effect of closer global linkages on the economics of countries has been dramatic.
ANS: T PTS: 1 DIF: Moderate REF: Page 13
11. The terms global marketing and international marketing are often used interchangeably because they mean the exact same thing.
ANS: F PTS: 1 DIF: Difficult REF: Page 8
12. Globalization of markets refers to the ability of firms to shift their manufacturing operations to countries around the world to take advantage of lower wage rates and government incentives.
ANS: F PTS: 1 DIF: Difficult REF: Page 8
13. A Canadian manufacturer may service global markets in any part of the world, depending on the relative costs associated with doing business in each locale.
ANS: T PTS: 1 DIF: Easy REF: Page 16
14. In many cases, expanded market participation and activity concentration can slow down the accumulation of learning and experience.
ANS: F PTS: 1 DIF: Difficult REF: Page 18
15. Economies of scope refers to the reduction in per unit cost of production as the firm expands its level of production.
ANS: F PTS: 1 DIF: Moderate REF: Page 11
16. Many firms do not participate in the global market because they feel international marketing should only be carried out by large, multinational corporations.
ANS: T PTS: 1 DIF: Moderate REF: Page 17
17. Small firms cannot be major players in the world market.
ANS: F PTS: 1 DIF: Moderate REF: Page 17
18. In a recent research project, Canada was ranked second most globalized country in the world.
ANS: F PTS: 1 DIF: Moderate REF: Page 14
19. All Canadian firms are able to participate in global markets without restrictions.
ANS: F PTS: 1 DIF: Moderate REF: Page 15
20. International marketing is much more than the science and art of business; it includes economics, anthropology, cultural studies, geography, history, languages, jurisprudence, statistics, demographics, and many other fields.
ANS: T PTS: 1 DIF: Moderate REF: Page 5
MULTIPLE CHOICE
1. Which of the following is the best definition of international marketing?
a.
Planning and conducting economic forecasting in developing countries
b.
Creating a subsidiary in a neighboring country
c.
The process of planning, coordination, and integration of marketing activities across multiple country markets.
d.
Hiring employees from other countries to assist with advertising messages.
ANS: C PTS: 1 DIF: Moderate REF: Page 8
2. Which of the following is a benefit of global marketing?
a.
Higher costs
b.
Market unification
c.
Lower production costs
d.
Workforce similarity
ANS: C PTS: 1 DIF: Moderate REF: Page 3
3. Firms learn much from which of the following?
a.
Their home managers
b.
Their competitors
c.
Their customers
d.
Their foreign managers
ANS: B PTS: 1 DIF: Difficult REF: Page 4
4. Which of the following groups of people benefit the most from global marketing activities as a result of greater profitability and longevity?
a.
Workers
b.
Retailers
c.
Competitors
d.
Wholesalers
ANS: A PTS: 1 DIF: Moderate REF: Page 4
5. Which of the following is a benefit that consumers experience as a result of free enterprise and global markets?
a.
Better quality of life
b.
Less product choice
c.
Higher prices
d.
Reduced product availability
ANS: C PTS: 1 DIF: Moderate REF: Page 4
6. Global marketing results in:
a.
A more separated society
b.
Varied efficiency in business transactions
c.
Inefficiencies in production
d.
Improved quality of life
ANS: D PTS: 1 DIF: Moderate REF: Page 6
7. Which of the following is correct with regards to economies of scale?
a.
Longer production runs and lower output translates into lower cost per unit
b.
Shorter production runs and lower output translates into higher cost per unit
c.
Longer production runs and lower output translates into higher cost per unit
d.
Longer production runs and increased output translates into lower cost per unit
ANS: D PTS: 1 DIF: Difficult REF: Page 11
8. The fall of government barriers in the last several years has:
a.
Facilitated the globalization of markets and the activities of marketers within them
b.
Complicated the globalization of markets and the buying patterns of consumers
c.
Facilitated the development of products and the increasing of prices
d.
Fragmented the markets in a significant way
ANS: A PTS: 1 DIF: Difficult REF: Page 12
9. The removal of ____ barriers is indicative of the changes taking place around the world on a greater scale.
a.
Social
b.
Fiscal
c.
Scientific
d.
Competitive
ANS: B PTS: 1 DIF: Moderate REF: Page 12
10. Globalization of production differs from globalization of markets in that it refers to the ability of firms to shift their manufacturing operations to countries around the world to take advantage of:
a.
Higher wage rates
b.
Lower wage rates
c.
Convergence of consumer tastes
d.
Global brands
ANS: B PTS: 1 DIF: Moderate REF: Page 10
11. Globalization reflects a business orientation based on the belief that the world is becoming:
a.
More heterogeneous and that distinctions between national markets are fading
b.
More homogeneous and that distinctions between domestic markets are increasing
c.
More heterogeneous and that distinctions between national markets are increasing
d.
More homogeneous and that distinctions between national markets are fading
ANS: D PTS: 1 DIF: Difficult REF: Page 11
12. The drivers of globalization can be divided into:
a.
Market, price, environmental, competitive factors
b.
Price, market, competitive, and domestic factors
c.
Market, cost, environmental, and competitive factors
d.
Market, cost, environmental, and customer factors
ANS: C PTS: 1 DIF: Moderate REF: Page 12
13. ____ is the definition of economies of scope:
a.
The reduction in per unit cost of production as the firm expands its level of production
b.
Reduced cost per unit as the firms spreads its total costs over a larger number or brands, product lines, or target markets
c.
Increased cost per unit as the firms spreads its total costs over a larger number or brands, product lines, or target markets
d.
The increase in unit cost of production as the firm expands its level of production
ANS: B PTS: 1 DIF: Difficult REF: Page 11
14. In many cases, expanded market penetration and activity concentration can ____ the accumulation of learning and experience:
a.
Decrease
b.
Improve
c.
Eliminate
d.
Accelerate
ANS: D PTS: 1 DIF: Moderate REF: Page 12
15. Research has shown that the vast majority of large firms generate most of their sales:
a.
In their home regions
b.
In their overseas regions
c.
By increasing prices overseas
d.
By increasing product variety
ANS: A PTS: 1 DIF: Moderate REF: Page 9
16. “Glocal Marketing” reflects the need for balance between:
a.
Standardization and local marketing
b.
Global marketing and global thinking
c.
Local marketing and standardization
d.
Global marketing and local marketing
ANS: D PTS: 1 DIF: Easy REF: Page 13
17. ____ are networks of companies that collaborate in the achievement of specific, mutually beneficial corporate objectives.
a.
Multinational companies
b.
Competitive alliances
c.
Strategic alliances
d.
International companies
ANS: C PTS: 1 DIF: Moderate REF: Page 9
18. Global marketing requires that:
a.
Firms sell at higher prices in home markets than in foreign markets
b.
Operate in multiple countries simultaneously
c.
The same products be offered in all markets
d.
The products be sold at the same prices in all markets
ANS: B PTS: 1 DIF: Moderate REF: Page 9
19. The difference between transactions that take place in global marketing and those that take place in domestic marketing is that transactions that take place in global marketing are:
a.
Between entities in similar countries
b.
Between customers in similar countries
c.
Between entities in different countries
d.
Between customers in different countries
ANS: C PTS: 1 DIF: Moderate REF: Page 10
20. The term “global marketing” was popularized by Theodore Levitt in the ____?
a.
1970’s
b.
1960’s
c.
1990’s
d.
1980’s
ANS: D PTS: 1 DIF: Moderate REF: Page 7
21. The emergence of technology has created new markets for companies. Which of the following represents an example of this new market tendency?
a.
The construction of corner drugstores that replace gas stations
b.
Listing of ingredients on the side panel labels of products distributed worldwide
c.
Newspapers being distributed on-line as opposed to physically on newsprint
d.
Storage facilities rented by the month
ANS: C PTS: 1 DIF: Moderate REF: Page 11
22. Apple’s iPod media player has an estimated ____% of worldwide sales.
a.
30
b.
45
c.
20
d.
25
ANS: D PTS: 1 DIF: Moderate REF: Page 12
23. In contrast to industries such as paper and soft drinks, industries such as government procurement are:
a.
Quite easy to enter
b.
Difficult to enter
c.
Still quite closed
d.
Very competitive
ANS: C PTS: 1 DIF: Moderate REF: Page 12
24. In order to serve the Japanese market, Caterpillar formed a heavy-equipment joint venture with:
a.
Komatsu
b.
Mitsubishi
c.
General Electric
d.
Toyota
ANS: B PTS: 1 DIF: Moderate REF: Page 13
25. Canada is ranked the third most globalized country in the world behind:
a.
Japan and the United States
b.
Sweden and France
c.
Sweden and the United States
d.
Japan and Denmark
ANS: C PTS: 1 DIF: Moderate REF: Page 14
26. The following is an example of a Canadian company that faces restrictions in terms of its participation in global markets:
a.
Lululemon
b.
Canadian Superstore
c.
La Senza
d.
Caron’s Farm
ANS: D PTS: 1 DIF: Moderate REF: Page 15
27. Maple syrup accounts for ____% of Quebec’s agriculture.
a.
5
b.
10
c.
2
d.
20
ANS: C PTS: 1 DIF: Moderate REF: Page 15
28. Which of the following was trashed by angry protestors in Switzerland in February 2000?
a.
McDonald’s
b.
Burger King
c.
Government offices
d.
Residential homes
ANS: A PTS: 1 DIF: Moderate REF: Page 15
29. One way to guard against market saturation of a product is:
a.
to lower interest rates.
b.
to delay introduction of a new product.
c.
to personalize the message to the customer.
d.
to lengthen or rejuvenate product life cycles in other countries.
ANS: D PTS: 1 DIF: Difficult REF: Page 12
30. Export-import trade, licensing, joint ventures, wholly owned subsidiaries, turnkey operations, and management contracts are examples of what?
a.
Global positioning systems
b.
Transparent industries
c.
Televisual optimization
d.
International marketing
ANS: D PTS: 1 DIF: Moderate REF: Page 9
31. Many firms commit grave mistakes, which lead to inefficiency, lack of consumer acceptance, and sometimes even corporate failure because executives believe that:
a.
parents of children in domestic families watch too much television.
b.
the influence of music on the masses dictates morals for a new generation.
c.
Incomplete research affects the learning curve.
d.
that international customers are just like the ones the firm deals with at home.
ANS: D PTS: 1 DIF: Moderate REF: Page 17
32. Size of the market expected to be global in the early 21st century is well over ____:
a.
$30 billion
b.
$25 billion
c.
$15 billion
d.
$21 billion
ANS: D PTS: 1 DIF: Difficult REF: Page 17
33. According to the text, international marketing differs from domestic marketing in three substantial ways. What are the three differences that marketers must take into account when conducting business internationally?
a.
Distance, products, and ideas
b.
Threats, exceptions, and tolerance
c.
Postage rates, telephone signals, and personal contact
d.
Different laws, cultures, and societies
ANS: D PTS: 1 DIF: Difficult REF: Page 7
34. Common cultural pressures result in similar social phenomena and behavior around the world. To what does the text attribute more frequent shopping worldwide?
a.
The emergence of uniform currency worldwide
b.
More dual-income families
c.
Common ancestral beginnings
d.
The rise in nuclear family units
ANS: B PTS: 1 DIF: Moderate REF: Page 14
35. Which of the following is an example of industries that are near extinction because of the inability of these groups to adjust to new technology?
a.
VCRs in the U.S
b.
toy makers
c.
air conditioning manufacturers
d.
shopping malls
ANS: A PTS: 1 DIF: Moderate REF: Page 11
SHORT ANSWER
1. What is the difference between economies of scale and economies of scope?
ANS:
Economies of scale refers to the reduction in per unit cost of production as the firm expands its level of production. Economies of scope, on the other hand, refers to reduced cost per unit as the firm spreads its total costs (production, marketing, and R&D) over a larger number or brands, product lines, or target markets.
PTS: 1 DIF: Moderate REF: Page 11
2. What are the two forms of globalization?
ANS:
The two forms are globalization of markets and the globalization of production. Globalization of markets refers to the convergence of consumer tastes around the world and the globalization of production refers to the ability of firms to shift their manufacturing operations to countries around the world to take advantage of lower wage rates and government incentives.
PTS: 1 DIF: Difficult REF: Page 6
3. What are FDI and Strategic Alliance forms of and what is the difference between FDI and Strategic Alliance?
ANS:
FDI and Strategic Alliance are two forms of foreign market entry methods. FDI refers to capital inflows from abroad that are used to create or expand a company’s long-term interest in an enterprise. Strategic Alliances are networks of companies that collaborate in the achievement of specific, mutually beneficial corporate objectives. Companies form strategic alliances as a way of developing new markets and sharing the risk of foreign market entry.
PTS: 1 DIF: Moderate REF: Page 8-9
#Test Bank Global Marketing Foreign Entry Market Development and Strategy Implementation 1st Edition
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Test Bank Global Marketing Contemporary Theory Practice and Cases 1st Edition
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Chapter 1
Understanding Global Markets and Marketing
Multiple Choice Questions
1.
The three activities included in the global marketing framework are:
A.
assessment, strategy development, and marketing mix construction.
B.
economic, political, and cultural development.
C.
the Internet, e-commerce, and digital communication.
D.
gaining market share, capturing prospective customers, and retaining new customers.
True / False Questions
2.
The term ‘global village’ refers to the fact that people who are physically separated by time and space are interconnected by electronic media. True False
3.
Because of expanded demand for a country’s products and the free movement of investment, technology, and know-how globalization has not experienced any negative publicity. True False
Multiple Choice Questions
4.
During the next six months, Greta and Abdul will be researching markets in the European Union for their line of interactive flat screen televisions. They will next identify which country in the region should be their target and determine what method they will use to enter it, and with what product marketing strategies. In short, Greta and Abdul are implementing __________.
A.
global operations
B.
the global marketing framework
C.
a strategic plan
D.
global outsourcing
5.
The process of interaction and integration among people, companies, and governments of many nations is known as__________________.
A.
multinational marketing
B.
social networking
C.
e-commerce
D.
globalization
True / False Questions
6.
Most people around the world have positive attitudes toward globalization. True False
7.
Because regional, integrated markets like the EU have brought us further towards a borderless world, consumer motivations and preferences across markets have become very much the same. True False
Multiple Choice Questions
8.
A global marketing approach requires that a firm attend to all of the following EXCEPT ___________.
A.
coordinate and integrate production, marketing, and other functions across countries
B.
develop strategies on a country by country basis
C.
focus efforts world-wide
D.
optimize resources and reduce costs
9.
Attaining worldwide coordination, rationalization, and integration of all marketing activities is the specific objective of __________________.
A.
the World Trade Organization
B.
regional and integrated markets such as NAFTA
C.
global marketing
D.
global markets
10.
The Cage Distance Framework suggests that the distance between countries can be measured along four dimensions. These include:
A.
cultural, administrative, geographic, and economic
B.
cultural, administrative, geographic, and environmental
C.
climate, administrative, geographic, and ethnicity
D.
culture, agreements, geography, and economy
11.
An overall decline in worldwide population growth contributes to all of the following EXCEPT:
A.
increased pension payments
B.
an aging population
C.
changes in work patterns
D.
greater pressure on the planet’s resources
12.
Shakeena’s Canadian firm has just entered into an arrangement to distribute upscale handbags and accessories to retailers and consumers in Taiwan. While research indicates that her product’s designs are compatible with other fashion-oriented items sold in Taiwan, she is still concerned. She perceives that the differences in culture between Canada and Taiwan are so significant that they will prevent a successful marketing effort. Shakeena is struggling with the phenomenon of ________________.
A.
cultural distance
B.
psychic distance
C.
multinational distance
D.
actual distance
13.
The EPRG framework proposes four orientations by which a firm’s foreign market operations are managed. These include:
A.
environment, population, commerce, and geography
B.
exports, purchases, resources, and goals
C.
ethnocentric, polycentric, regiocentric, and geocentric
D.
earnings, profits, revenues, and goals
14.
Within the EPRG framework, firms that believe their domestic strategies are superior to foreign strategies and thus leverage their domestic strategy in all global markets are considered to have a(n) ________________ orientation.
A.
geocentric
B.
ethnocentric
C.
polycentric
D.
regiocentric
15.
Within the EPRG framework, global firms whose strategies differ significantly from country to country are likely operating with a(n) ________________ orientation.
A.
geocentric
B.
regiocentric
C.
polycentric
D.
ethnocentric
16.
Within the EPRG framework, a global marketer who orients a marketing strategy to the European Union exhibits a(n) _____________ orientation.
A.
ethnocentric
B.
regiocentric
C.
polycentric
D.
geocentric
17.
The global marketer who confidently proclaims, “The world is my market!” has a(n) ________________ orientation according to the EPRG framework.
A.
geocentric
B.
polycentric
C.
regiocentric
D.
ethnocentric
True / False Questions
18.
A completely standardized marketing mix is common among global companies. True False
Multiple Choice Questions
19.
All of these are benefits to standardized marketing strategies on a global basis EXCEPT___________.
A.
uniformity of product design
B.
lowered R&D costs
C.
the ability to discretely address local market needs
D.
economies of scale in production and marketing
20.
Creating value by some form of company-customer interaction at the fabrication/assembly stage of the operations level to create customized products with production cost and monetary price similar to those of mass-produced products defines ___________ .
A.
customer relationship marketing
B.
mass customization
C.
customized marketing
D.
mass production
21.
The concept of customization views each consumer as ______________.
A.
unaffected by cultural differences
B.
price-driven
C.
a member of an undifferentiated market
D.
an individual market segment
True / False Questions
22.
If products are standardized, then all accompanying elements of the marketing mix can be standardized as well. True False
23.
A Nescafe commercial airing in Chile would convey the same promotional message if run in France. True False
24.
Dell's famous "build-to-order" model that facilitated its rise to dominance in the PC industry is an example of successful consumer goods customization. True False
Multiple Choice Questions
25.
Longer waiting times for customized products, longer searching times for retail outlets and higher prices are challenges inherent in _______________.
A.
customization
B.
standardization
C.
mass production
D.
team production
26.
The sequence of activities required to make a product or provide a service is known as a ______________.
A.
chain of command
B.
value chain
C.
competitive advantage
D.
modus operandi (M.O.)
27.
Inbound logistics, marketing and sales, and operations are all considered elements of __________________.
A.
service and after sales support
B.
research and development
C.
secondary value chain activities
D.
primary value chain activities
28.
Secondary value chain activities include all of these elements except __________.
A.
after sales support
B.
human resources
C.
technology development
D.
procurement
29.
The difference between the total value (the price the consumer is willing to pay) and the cost of performing all the activities in the value chain is referred to as __________.
A.
profit
B.
margin
C.
value differential
D.
value system
True / False Questions
30.
In a global marketing system, there is a growing spatial dispersion of activities that comprise a value chain. True False
Multiple Choice Questions
31.
The major tools by which a global value chain is managed are ___________________ and ___________________.
A.
configuration, coordination
B.
research, development
C.
sales, service
D.
shipping, receiving
True / False Questions
32.
Cross-subsidization is applicable when firms can benefit from sharing costs and/or revenues. True False
Multiple Choice Questions
33.
All of these elements are considered internal drivers of global marketing strategy except ___________________.
A.
global vision
B.
financing
C.
international experience
D.
culture
34.
All of these are considered external drivers of global marketing strategy except ______________________.
A.
international experience
B.
economy
C.
culture
D.
political-legal systems
True / False Questions
35.
While market and consumer oriented metrics measure overall firm performance, financial outcomes are better indicators of marketing success. True False
36.
The Booz Allen Hamilton consulting firm found that firms having the highest rates of R&D spending as a percentage of sales are more likely than other companies in their industries to achieve superior gross margins. True False
Multiple Choice Questions
37.
The ability to look into the future; the capacity to visualize the image that the company is seeking to create on a world-wide basis is known as ________________.
A.
a mission statement
B.
global vision
C.
strategic vision
D.
foreign mission
38.
All of these are consumer measures of marketing performance except _______________.
A.
brand equity
B.
purchase intention
C.
market share
D.
brand recognition
39.
New products launched and revenue from new products/total turnover are elements of the ______________ measurement of marketing performance.
A.
innovation
B.
market
C.
consumer
D.
financial
Chapter 1 Understanding Global Markets and Marketing Answer Key
Multiple Choice Questions
1.
The three activities included in the global marketing framework are:
A.
assessment, strategy development, and marketing mix construction.
B.
economic, political, and cultural development.
C.
the Internet, e-commerce, and digital communication.
D.
gaining market share, capturing prospective customers, and retaining new customers.
Correct!
True / False Questions
2.
The term ‘global village’ refers to the fact that people who are physically separated by time and space are interconnected by electronic media. TRUE
Correct!
3.
Because of expanded demand for a country’s products and the free movement of investment, technology, and know-how globalization has not experienced any negative publicity. FALSE
Globalization has in fact become quite controversial in recent years due to issues regarding labor conditions and many others.
Multiple Choice Questions
4.
During the next six months, Greta and Abdul will be researching markets in the European Union for their line of interactive flat screen televisions. They will next identify which country in the region should be their target and determine what method they will use to enter it, and with what product marketing strategies. In short, Greta and Abdul are implementing __________.
A.
global operations
B.
the global marketing framework
C.
a strategic plan
D.
global outsourcing
Operations implies a step in implementation as opposed to implementing a marketing framework.
5.
The process of interaction and integration among people, companies, and governments of many nations is known as__________________.
A.
multinational marketing
B.
social networking
C.
e-commerce
D.
globalization
Multinational marketing is one subset of globalized business but does not include all global business activities.
True / False Questions
6.
Most people around the world have positive attitudes toward globalization. TRUE
Correct!
7.
Because regional, integrated markets like the EU have brought us further towards a borderless world, consumer motivations and preferences across markets have become very much the same. FALSE
In spite of the removal of trade and other barriers that result from integrated markets, consumer preferences within individual markets are still quite varied.
Multiple Choice Questions
8.
A global marketing approach requires that a firm attend to all of the following EXCEPT ___________.
A.
coordinate and integrate production, marketing, and other functions across countries
B.
develop strategies on a country by country basis
C.
focus efforts world-wide
D.
optimize resources and reduce costs
Coordination of these elements is critical to a global marketing approach.
9.
Attaining worldwide coordination, rationalization, and integration of all marketing activities is the specific objective of __________________.
A.
the World Trade Organization
B.
regional and integrated markets such as NAFTA
C.
global marketing
D.
global markets
The WTO, or World Trade Organization, is concerned with and promoting fair trade and prosperity worldwide and is not specifically focused on marketing.
10.
The Cage Distance Framework suggests that the distance between countries can be measured along four dimensions. These include:
A.
cultural, administrative, geographic, and economic
B.
cultural, administrative, geographic, and environmental
C.
climate, administrative, geographic, and ethnicity
D.
culture, agreements, geography, and economy
Correct!
11.
An overall decline in worldwide population growth contributes to all of the following EXCEPT:
A.
increased pension payments
B.
an aging population
C.
changes in work patterns
D.
greater pressure on the planet’s resources
Increased pension payments are an indirect result of the aging population associated with the decline of worldwide population growth.
12.
Shakeena’s Canadian firm has just entered into an arrangement to distribute upscale handbags and accessories to retailers and consumers in Taiwan. While research indicates that her product’s designs are compatible with other fashion-oriented items sold in Taiwan, she is still concerned. She perceives that the differences in culture between Canada and Taiwan are so significant that they will prevent a successful marketing effort. Shakeena is struggling with the phenomenon of ________________.
A.
cultural distance
B.
psychic distance
C.
multinational distance
D.
actual distance
Cultural distance refers to a measure of the actual differences or similarities between cultures, whereas psychic differences exist in the minds of the individuals, in this case, Shakeena.
13.
The EPRG framework proposes four orientations by which a firm’s foreign market operations are managed. These include:
A.
environment, population, commerce, and geography
B.
exports, purchases, resources, and goals
C.
ethnocentric, polycentric, regiocentric, and geocentric
D.
earnings, profits, revenues, and goals
These elements serve to explain the environment in which the global firm is operating but do not represent how the firm actually operates within that environment.
14.
Within the EPRG framework, firms that believe their domestic strategies are superior to foreign strategies and thus leverage their domestic strategy in all global markets are considered to have a(n) ________________ orientation.
A.
geocentric
B.
ethnocentric
C.
polycentric
D.
regiocentric
A geocentric firm seeks to standardize one global strategy which may or may not be based upon its domestic strategy.
15.
Within the EPRG framework, global firms whose strategies differ significantly from country to country are likely operating with a(n) ________________ orientation.
A.
geocentric
B.
regiocentric
C.
polycentric
D.
ethnocentric
A geocentric firm seeks to standardize one global strategy for all global markets, while a polycentric firm implements discrete strategies for each market.
16.
Within the EPRG framework, a global marketer who orients a marketing strategy to the European Union exhibits a(n) _____________ orientation.
A.
ethnocentric
B.
regiocentric
C.
polycentric
D.
geocentric
This variable would deal with cultural as opposed to regional issues.
17.
The global marketer who confidently proclaims, “The world is my market!” has a(n) ________________ orientation according to the EPRG framework.
A.
geocentric
B.
polycentric
C.
regiocentric
D.
ethnocentric
Correct!
True / False Questions
18.
A completely standardized marketing mix is common among global companies. FALSE
While companies continually strive to standardize the marketing mix in order to take advantage of benefits such as economies of scale and consistent product quality, few firms can claim to have achieved this goal.
Multiple Choice Questions
19.
All of these are benefits to standardized marketing strategies on a global basis EXCEPT___________.
A.
uniformity of product design
B.
lowered R&D costs
C.
the ability to discretely address local market needs
D.
economies of scale in production and marketing
Uniformity of product design is a benefit to standardization, as common technical and production standards are applied to products.
20.
Creating value by some form of company-customer interaction at the fabrication/assembly stage of the operations level to create customized products with production cost and monetary price similar to those of mass-produced products defines ___________ .
A.
customer relationship marketing
B.
mass customization
C.
customized marketing
D.
mass production
Customer relationship marketing refers to creating value by the development of personal interactions with customers and their resultant sense of trust in the brand and the company.
21.
The concept of customization views each consumer as ______________.
A.
unaffected by cultural differences
B.
price-driven
C.
a member of an undifferentiated market
D.
an individual market segment
Customized products are designed to address specific consumer preferences based upon culture.
True / False Questions
22.
If products are standardized, then all accompanying elements of the marketing mix can be standardized as well. FALSE
Each product whether standardized or customized may have to adopt communication, pricing, or distribution to different target markets.
23.
A Nescafe commercial airing in Chile would convey the same promotional message if run in France. FALSE
This is illustrated in the example provided in your text.
24.
Dell's famous "build-to-order" model that facilitated its rise to dominance in the PC industry is an example of successful consumer goods customization. TRUE
Correct!
Multiple Choice Questions
25.
Longer waiting times for customized products, longer searching times for retail outlets and higher prices are challenges inherent in _______________.
A.
customization
B.
standardization
C.
mass production
D.
team production
Correct!
26.
The sequence of activities required to make a product or provide a service is known as a ______________.
A.
chain of command
B.
value chain
C.
competitive advantage
D.
modus operandi (M.O.)
This refers to organizational hierarchy and not manufacturing or marketing.
27.
Inbound logistics, marketing and sales, and operations are all considered elements of __________________.
A.
service and after sales support
B.
research and development
C.
secondary value chain activities
D.
primary value chain activities
Service and sales support are elements of primary value chain activities.
28.
Secondary value chain activities include all of these elements except __________.
A.
after sales support
B.
human resources
C.
technology development
D.
procurement
Correct!
29.
The difference between the total value (the price the consumer is willing to pay) and the cost of performing all the activities in the value chain is referred to as __________.
A.
profit
B.
margin
C.
value differential
D.
value system
This is a traditional definition of revenue minus cost and does not reflect the complete scope of the value chain.
True / False Questions
30.
In a global marketing system, there is a growing spatial dispersion of activities that comprise a value chain. TRUE
Correct!
Multiple Choice Questions
31.
The major tools by which a global value chain is managed are ___________________ and ___________________.
A.
configuration, coordination
B.
research, development
C.
sales, service
D.
shipping, receiving
Correct!
True / False Questions
32.
Cross-subsidization is applicable when firms can benefit from sharing costs and/or revenues. TRUE
Correct!
Multiple Choice Questions
33.
All of these elements are considered internal drivers of global marketing strategy except ___________________.
A.
global vision
B.
financing
C.
international experience
D.
culture
This is indeed considered an internal driver of global marketing strategy.
34.
All of these are considered external drivers of global marketing strategy except ______________________.
A.
international experience
B.
economy
C.
culture
D.
political-legal systems
Correct!
True / False Questions
35.
While market and consumer oriented metrics measure overall firm performance, financial outcomes are better indicators of marketing success. FALSE
It is actually market and consumer metrics that are considered to be better indicators of marketing success.
36.
The Booz Allen Hamilton consulting firm found that firms having the highest rates of R&D spending as a percentage of sales are more likely than other companies in their industries to achieve superior gross margins. TRUE
Correct!
Multiple Choice Questions
37.
The ability to look into the future; the capacity to visualize the image that the company is seeking to create on a world-wide basis is known as ________________.
A.
a mission statement
B.
global vision
C.
strategic vision
D.
foreign mission
This is a statement of the company's organizational goals and objectives.
38.
All of these are consumer measures of marketing performance except _______________.
A.
brand equity
B.
purchase intention
C.
market share
D.
brand recognition
This is considered a consumer measure of marketing performance.
39.
New products launched and revenue from new products/total turnover are elements of the ______________ measurement of marketing performance.
A.
innovation
B.
market
C.
consumer
D.
financial
Correct!
0 notes
Text
Test Bank Global Marketing 8th Edition
For Order This And Any Other Test
Banks And Solutions Manuals, Course,
Assignments, Discussions, Quizzes, Exams,
Contact us At: [email protected]
Global Marketing, 8e (Keegan/Green)
Chapter 1 Introduction to Global Marketing
1) The market development strategy involves seeking new customers by introducing existing products or services to a new market segment.
Answer: TRUE
Difficulty: Easy
Chapter LO: 1
AACSB: Reflective thinking
Course LO: Discuss the fundamental concepts of marketing
2) Starbucks is building on its loyalty card and rewards program in the United States with a smartphone app that enables customers to pay for purchases electronically. This is an example of Market Penetration.
Answer: TRUE
Difficulty: Moderate
Chapter LO: 1
AACSB: Reflective thinking
Course LO: Discuss the fundamental concepts of marketing
3) The perceived value equation can be represented as Value = Price/Benefits.
Answer: FALSE
Difficulty: Easy
Chapter LO: 2
AACSB: Analytical thinking
Course LO: Discuss the fundamental concepts of marketing
4) Companies can increase prices if costs are low because of process efficiencies in manufacturing.
Answer: FALSE
Difficulty: Easy
Chapter LO: 2
AACSB: Reflective thinking
Course LO: Identify and describe the processes and tools of strategic marketing
5) If Nestlé 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.
Answer: FALSE
Difficulty: Moderate
Chapter LO: 2
AACSB: Reflective thinking
Course LO: Identify and describe the processes and tools of strategic marketing
6) The Yugo automobile achieved a modest level of U.S. sales in the 1980s despite a "don't buy" rating from a consumer magazine.
Answer: TRUE
Difficulty: Easy
Chapter LO: 2
AACSB: Reflective thinking
Course LO: Identify and describe the processes and tools of strategic marketing
7) Walmart's recent exit from the German market was due, in part, to the fact that German shoppers could find lower prices at stores known as "hard discounters."
Answer: TRUE
Difficulty: Moderate
Chapter LO: 2
AACSB: Reflective thinking
Course LO: Identify and describe the processes and tools of strategic marketing
8) Nike dropped their well-known tag line "Just do it" in advertising women's clothing in Europe and replaced it by the slogan "Here I am" since college-age women in Europe are not as competitive about sports as men are.
Answer: TRUE
Difficulty: Moderate
Chapter LO: 2
AACSB: Analytical thinking
Course LO: Identify and describe the processes and tools of strategic marketing
9) From a global marketing perspective, the history of the Beatles' records is an interesting case study in both product adaptation and product extension.
Answer: TRUE
Difficulty: Moderate
Chapter LO: 2
AACSB: Reflective thinking
Course LO: Identify and describe the processes and tools of strategic marketing
10) In an effort to "Americanize" the sound of the Beatles' recordings, a studio effect known as reverb was added to some tracks.
Answer: TRUE
Difficulty: Moderate
Chapter LO: 3
AACSB: Reflective thinking
Course LO: Identify and describe the processes and tools of strategic marketing
11) McDonald's global marketing strategy is based primarily on local marketing mix elements.
Answer: FALSE
Difficulty: Moderate
Chapter LO: 3
AACSB: Reflective thinking
Course LO: Identify and describe the processes and tools of strategic marketing
12) Starbucks opened an experimental store in Amsterdam that serves as a testing ground for new design concepts such as locally sourced and recycled building materials.
Answer: TRUE
Difficulty: Moderate
Chapter LO: 3
AACSB: Reflective thinking
Course LO: Identify and describe the processes and tools of strategic marketing
13) Tang drink powder became a $1 billion brand as regional managers in the Middle East added mango and pineapple flavors.
Answer: TRUE
Difficulty: Easy
Chapter LO: 3
AACSB: Reflective thinking
Course LO: Describe the global marketing environment today and explain the options companies consider as they go global
14) About 75 percent of the Coca-Cola Company's operating income and two-thirds of its operating revenue are generated outside North America.
Answer: TRUE
Difficulty: Moderate
Chapter LO: 4
AACSB: Reflective thinking
Course LO: Identify and describe the processes and tools of strategic marketing
15) Ethnocentric companies that conduct business outside the home country adhere to the notion that the products that succeed in the home country will succeed anywhere.
Answer: TRUE
Difficulty: Difficult
Chapter LO: 5
AACSB: Application of knowledge
Course LO: Identify and describe the processes and tools of strategic marketing
16) The term "polycentric" describes management's belief or assumption that each country in which a company does business is the same as the home country business.
Answer: FALSE
Difficulty: Moderate
Chapter LO: 5
AACSB: Analytical thinking
Course LO: Identify and describe the processes and tools of strategic marketing
17) Unilever's Rexona deodorant brand had 30 different package designs and 48 different formulations. This is an example of ethnocentrism.
Answer: FALSE
Difficulty: Easy
Chapter LO: 5
AACSB: Application of knowledge
Course LO: Identify and describe the processes and tools of strategic marketing
18) A U.S. company that focuses on the countries included in the North American Free Trade Agreement (NAFTA) has a regiocentric orientation.
Answer: TRUE
Difficulty: Moderate
Chapter LO: 5
AACSB: Analytical thinking
Course LO: Describe the global marketing environment today and explain the options companies consider as they go global
19) A European company that focuses its attention on Europe can be considered to have geocentric orientation.
Answer: FALSE
Difficulty: Difficult
Chapter LO: 5
AACSB: Reflective thinking
Course LO: Describe the global marketing environment today and explain the options companies consider as they go global
20) A company with a geocentric orientation views the world as a potential market and strives to develop integrated global strategies.
Answer: TRUE
Difficulty: Difficult
Chapter LO: 5
AACSB: Diverse and multicultural work environment
Course LO: Describe the global marketing environment today and explain the options companies consider as they go global
21) A true transnational company would be characterized as "stateless."
Answer: TRUE
Difficulty: Difficult
Chapter LO: 6
AACSB: Application of knowledge
Course LO: Describe the global marketing environment today and explain the options companies consider as they go global
22) One way to assess a company's "degree of transnationality" is to compute the ratio between the sales outside the home country to total sales.
Answer: TRUE
Difficulty: Difficult
Chapter LO: 6
AACSB: Application of knowledge
Course LO: Describe the global marketing environment today and explain the options companies consider as they go global
23) Economic growth has reduced resistance that might otherwise have developed in response to the entry of foreign firms into domestic economies.
Answer: TRUE
Difficulty: Difficult
Chapter LO: 6
AACSB: Diverse and multicultural work environment
Course LO: Describe the global marketing environment today and explain the options companies consider as they go global
24) In the context of global marketing, leverage means some type of advantage that a company enjoys by virtue of the fact that it has experience in its home country.
Answer: FALSE
Difficulty: Difficult
Chapter LO: 6
AACSB: Analytical thinking
Course LO: Describe the global marketing environment today and explain the options companies consider as they go global
25) Evidence of the company's ongoing commitment to innovation can be seen in continuous new product introduction.
Answer: TRUE
Difficulty: Moderate
Chapter LO: 6
AACSB: Analytical thinking
Course LO: Discuss the fundamental concepts of marketing
26) Most global markets do not exist in nature.
Answer: TRUE
Difficulty: Moderate
Chapter LO: 6
AACSB: Reflective thinking
Course LO: Discuss the fundamental concepts of marketing
27) A global company can leverage its experience in any market in the world.
Answer: TRUE
Difficulty: Moderate
Chapter LO: 5
AACSB: Reflective thinking
Course LO: Describe the global marketing environment today and explain the options companies consider as they go global
28) Nontariff barriers (NTBs) are monetary restrictions on cross-border trade.
Answer: FALSE
Difficulty: Moderate
Chapter LO: 6
AACSB: Reflective thinking
Course LO: Describe the global marketing environment today and explain the options companies consider as they go global
29) Anheuser-Busch, the brewer of Budweiser beer, lost its independence after years of focusing primarily on the U.S. market.
Answer: TRUE
Difficulty: Moderate
Chapter LO: 6
AACSB: Analytical thinking
Course LO: Describe the global marketing environment today and explain the options companies consider as they go global
30) The term globaphobia is used to describe an attitude of hostility towards trade agreements and global brands.
Answer: TRUE
Difficulty: Easy
Chapter LO: 5
AACSB: Reflective thinking
Course LO: Describe the global marketing environment today and explain the options companies consider as they go global
31) When you call United Airlines for a reservation on a toll-free number and get a response from an operator in Mumbai, this is an example of:
A) anti-globalization.
B) global marketplace.
C) multilingual expression.
D) discrimination.
E) E-ticketing.
Answer: B
Difficulty: Moderate
Chapter LO: 1
AACSB: Reflective thinking
Course LO: Describe the global marketing environment today and explain the options companies consider as they go global
32) 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: D
Difficulty: Moderate
Chapter LO: 1
AACSB: Reflective thinking
Course LO: Describe the global marketing environment today and explain the options companies consider as they go global
33) Slumdog Millionaire, a movie which received several awards and an Oscar in 2009, was filmed on a location in and around:
A) London.
B) San Francisco.
C) Cancun.
D) Mumbai.
E) Moscow.
Answer: D
Difficulty: Easy
Chapter LO: 1
AACSB: Reflective thinking
Course LO: Discuss the fundamental concepts of marketing
34) Starbucks has launched several new ventures in global markets, including music CDs and movie production. This is an example of:
A) Market Penetration.
B) Market Development.
C) Market Diversification.
D) Product Development.
E) Global Marketing.
Answer: C
Difficulty: Moderate
Chapter LO: 1
AACSB: Analytical thinking
Course LO: Describe the global marketing environment today and explain the options companies consider as they go global
35) 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.
Answer: B
Difficulty: Moderate
Chapter LO: 1
AACSB: Application of knowledge
Course LO: Describe the global marketing environment today and explain the options companies consider as they go global
36) Starbucks is building on its loyalty card and rewards program in the United States with a smartphone app that enables customers to pay for purchases electronically. The app displays a bar code that the barista can scan. This is an example of:
A) Market Penetration.
B) Market Development.
C) Market Diversification.
D) Product Development.
E) Global Marketing.
Answer: A
Difficulty: Moderate
Chapter LO: 1
AACSB: Information technology
Course LO: Describe the global marketing environment today and explain the options companies consider as they go global
37) Starbucks is entering India via an alliance with the Tata Group. Phase 1 calls for sourcing coffee beans in India and marketing them at Starbucks stores throughout the world. This is an example of:
A) Market Penetration.
B) Market Development.
C) Market Diversification.
D) Product Development.
E) Regular Marketing.
Answer: B
Difficulty: Moderate
Chapter LO: 1
AACSB: Analytical thinking
Course LO: Describe the global marketing environment today and explain the options companies consider as they go global
38) 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.
Answer: B
Difficulty: Difficult
Chapter LO: 1
AACSB: Analytical thinking
Course LO: Discuss the fundamental concepts of marketing
39) The marketing mix is integral to the value equation which is represented by:
A) Value = Price/Benefits.
B) Value = Benefits/Price.
C) Value = Benefits × Price.
D) Value = Benefits - Price.
E) Value = Benefits + Price.
Answer: B
Difficulty: Difficult
Chapter LO: 1
AACSB: Analytical thinking
Course LO: Discuss the fundamental concepts of marketing
40) Renault and its rivals are racing to offer middle-class consumers a new value proposition by selling cars for the equivalent of $10,000 or less. On the heels of Renault's success with Dacia Logan came the $2,500 Nano from India's Tata Motors. This illustrates that:
A) consumers are looking for low price irrespective of quality.
B) Renault is overcharging for their cars compared to their competitors.
C) higher product development costs are a driving force behind globalization.
D) market success depends on reaching a threshold of acceptable quality for consumers.
E) cars are not very popular in emerging markets like India.
Answer: D
Difficulty: Difficult
Chapter LO: 1
AACSB: Analytical thinking
Course LO: Discuss the fundamental concepts of marketing
41) Walmart's exit from the German market was due, in part, to the fact that German shoppers could find lower prices at stores known as:
A) All-in-one stores.
B) Dollar stores.
C) Discount sores.
D) Hard discounters.
E) Fresh & Easy stores.
Answer: D
Difficulty: Moderate
Chapter LO: 1
AACSB: Analytical thinking
Course LO: Discuss the fundamental concepts of marketing
42) According to Michael Porter, a global industry is one in which ________ can be achieved by integrating and leveraging operations on a worldwide scale.
A) marketing mix
B) competitive advantage
C) cross border infiltration
D) ration analysis
E) production capability
Answer: B
Difficulty: Moderate
Chapter LO: 2
AACSB: Reflective thinking
Course LO: Discuss the fundamental concepts of marketing
43) The former chairman of Nestlé recently told an interviewer: "We are food and beverages. We are not running bicycle shops. Even in food we are not in all fields. There are certain areas we do not touch. Also, we have no soft drinks because I have said we either buy Coca-Cola or we leave it alone." What strategic marketing principle does the chairman's comment emphasize most specifically?
A) customer value
B) competitive advantage
C) focus
D) myopia
E) policy of dealing only with Swiss businesses
Answer: C
Difficulty: Difficult
Chapter LO: 2
AACSB: Reflective thinking
Course LO: Discuss the fundamental concepts of marketing
44) Nike recently adopted the slogan "Here I am" for its pan-European clothing advertising targeting women. The decision to drop the famous "Just do it" tag line was based on the research indicating that:
A) the famous slogan did not have accurate translation in European languages.
B) Europeans do not like tag lines that portray American thinking.
C) college-age women in Europe are not as competitive about sports as men are.
D) the old slogan conveys superiority of men over women.
E) European women want to differentiate themselves from men.
Answer: C
Difficulty: Moderate
Chapter LO: 2
AACSB: Diverse and multicultural work environment
Course LO: Identify and describe the processes and tools of strategic marketing
45) The decision to enter one or more particular markets outside the home country depends on all of the mentioned factors except:
A) company's resources.
B) company's age.
C) company's managerial mind-set.
D) nature of opportunities.
E) threats.
Answer: B
Difficulty: Easy
Chapter LO: 2
AACSB: Reflective thinking
Course LO: Identify and describe the processes and tools of strategic marketing
46) From the global marketing perspective, the customization of the Beatles' records is a good example of:
A) product adaptation.
B) market penetration.
C) diversification.
D) product development.
E) marketing mix.
Answer: A
Difficulty: Easy
Chapter LO: 2
AACSB: Reflective thinking
Course LO: Identify and describe the processes and tools of strategic marketing
47) In an effort to "Americanize" the sound of the Beatles' recordings, a studio effect known as reverb was added to some tracks. This is an example of:
A) product adaptation.
B) market penetration.
C) diversification.
D) product development.
E) marketing mix.
Answer: A
Difficulty: Easy
Chapter LO: 2
AACSB: Reflective thinking
Course LO: Identify and describe the processes and tools of strategic marketing
48) Two decades ago, professor Ted Levitt wrote a classic Harvard Business Review article titled "The Globalization of Markets." Which of the following statements about the author and the article is accurate?
A) Levitt urged companies to adopt products on a country-by-country basis.
B) There was universal agreement about his thesis that the world is becoming homogeneous.
C) Levitt urged companies to develop standardized products that could be marketed worldwide with little adaptation.
D) Levitt warned of the coming backlash against globalization.
E) Levitt did not recommend developing standardized products.
Answer: C
Difficulty: Difficult
Chapter LO: 2
AACSB: Reflective thinking
Course LO: Identify and describe the processes and tools of strategic marketing
49) Coca-Cola achieved success in the Japanese market primarily by:
A) standardization of marketing mix elements.
B) global localization.
C) vending machine operations.
D) selecting market mix options.
E) homogenization.
Answer: B
Difficulty: Moderate
Chapter LO: 2
AACSB: Reflective thinking
Course LO: Identify and describe the processes and tools of strategic marketing
50) A company that succeeds in global marketing:
A) pursues a "one size fits all" strategy by creating identical products for homogeneous markets.
B) customizes special products for each world country or region.
C) creates both standardized and localized products.
D) nurtures an ethnocentric management orientation.
E) uses localized products only.
Answer: C
Difficulty: Moderate
Chapter LO: 2
AACSB: Reflective thinking
Course LO: Identify and describe the processes and tools of strategic marketing
51) An important managerial task in global marketing is learning to recognize the extent to which it is possible to extend marketing plans as well as the extent to which adaptation is desired. The way a company addresses this task is a reflection of the company's:
A) market penetration.
B) market diversification.
C) global marketing strategy.
D) product development.
E) product standardization.
Answer: C
Difficulty: Difficult
Chapter LO: 2
AACSB: Reflective thinking
Course LO: Identify and describe the processes and tools of strategic marketing
52) One of the dimensions of global marketing strategy which pertains to marketing management is:
A) concentration of market penetration.
B) coordination of market diversification.
C) integration of competitive moves.
D) coordination of product development.
E) product standardization.
Answer: C
Difficulty: Difficult
Chapter LO: 3
AACSB: Reflective thinking
Course LO: Identify and describe the processes and tools of strategic marketing
53) Statements that illustrate the success of global marketing include all of the following except:
A) the Coca-Cola Company supports its Coke brand by utilizing global and local marketing mix.
B) Apple is synonymous with cutting-edge innovation and high-tech design.
C) Italy's Benetton utilizes marketing as a knee-jerk reaction to world marketing needs.
D) the backbone of Caterpillar's global success is its network of dealers.
E) Germany's reputation for engineering and manufacturing provides a competitive advantage.
Answer: C
Difficulty: Moderate
Chapter LO: 3
AACSB: Diverse and multicultural work environment
Course LO: Identify and describe the processes and tools of strategic marketing
54) McDonald's serves McAloo Tikki Burger in India, McRice Burger in Malaysia, McOZ Burger in Australia, Kiwi Burger in New Zealand, and McHuevo Burger in Uruguay and McSamurai Burger in Thailand. These menu variations are examples of:
A) a combination of global and local marketing mix elements.
B) a reflection of failure of U.S. menu items in those countries.
C) a deviation from successful marketing practices.
D) a replacement of standard menu names with fancy names.
E) a selection of menu items that can be sold eventually in U.S. markets.
Answer: A
Difficulty: Easy
Chapter LO: 3
AACSB: Diverse and multicultural work environment
Course LO: Describe the global marketing environment today and explain the options companies consider as they go global
55) All of the following correctly states McDonald's approach to standardization and adaptation of the marketing mix except:
A) McDonald's standardizes some product elements and adapts others.
B) McDonald's standardizes some place elements and adapts others.
C) McDonald's standardizes some promotion elements and adapts others.
D) McDonald's standardizes some price elements and adapts others.
E) McDonald's standardizes all product elements.
Answer: E
Difficulty: Moderate
Chapter LO: 3
AACSB: Diverse and multicultural work environment
Course LO: Describe the global marketing environment today and explain the options companies consider as they go global
56) Examples of effective global marketing by McDonald's include both standardized and localized marketing mix elements. Which of the following does not represent a localized element?
A) It serves McAloo tikki potato burger in India.
B) It uses the advertising slogan "I'm lovin' it."
C) It operates themed dining cars on the Swiss national rail system.
D) It has home delivery service in India.
E) It has slang nicknames such as MakDo in Philippines and McDo in France.
Answer: B
Difficulty: Moderate
Chapter LO: 3
AACSB: Diverse and multicultural work environment
Course LO: Describe the global marketing environment today and explain the options companies consider as they go global
57) Uniqlo, a division of Japan's Fast Retail, operates about 850 stores in Japan and currently has six stores in the United States. Their plans call for a total of 200 U.S. stores by 2020. The fulfillment of their plan will depend on:
A) industry conditions.
B) sources of competitive advantage.
C) the condition of the apparel market worldwide.
D) the demand in Japan for U.S. style garments.
E) all of the above
Answer: E
Difficulty: Moderate
Chapter LO: 4
AACSB: Analytical thinking
Course LO: Identify and describe the processes and tools of strategic marketing
58) Measured by national income, the United States represents the world's largest single market for goods and services. Roughly what percentage of world income is found outside the United States?
A) 25%
B) 50%
C) 75%
D) 95%
E) 35%
Answer: C
Difficulty: Moderate
Chapter LO: 4
AACSB: Analytical thinking
Course LO: Identify and describe the processes and tools of strategic marketing
59) Even though Germany is the largest single-country market in Europe, what percent of the world market potential for German companies is outside Germany?
A) 40%
B) 55%
C) 74%
D) 94%
E) 85%
Answer: D
Difficulty: Easy
Chapter LO: 4
AACSB: Analytical thinking
Course LO: Identify and describe the processes and tools of strategic marketing
60) According to the Fortune global 500 companies for 2012, the largest corporation based on revenue is:
A) Exxon Corporation.
B) Toyota Motors.
C) Royal Dutch Shell.
D) General Electric.
E) Walmart stores.
Answer: C
Difficulty: Easy
Chapter LO: 4
AACSB: Analytical thinking
Course LO: Identify and describe the processes and tools of strategic marketing
61) Based on 2012 rankings of Fortune Global 500 companies, the world's most valuable car company is:
A) GM.
B) Daimler AG.
C) Toyota.
D) Ford.
E) Chrysler.
Answer: C
Difficulty: Easy
Chapter LO: 4
AACSB: Analytical thinking
Course LO: Identify and describe the processes and tools of strategic marketing
62) Based on the size of the market in U.S. dollars, the leading consumer products are:
A) cell phones.
B) bottled water.
C) cigarettes.
D) video games.
E) recorded music.
Answer: C
Difficulty: Easy
Chapter LO: 4
AACSB: Analytical thinking
Course LO: Identify and describe the processes and tools of strategic marketing
63) Based on the size of the market in U.S. dollars, the second highest consumer products are:
A) luxury goods.
B) cell phones.
C) cigarettes.
D) bottled water.
E) recorded music.
Answer: A
Difficulty: Easy
Chapter LO: 4
AACSB: Analytical thinking
Course LO: Identify and describe the processes and tools of strategic marketing
64) Based on the total annual units sold in the worldwide market, the leading product category is:
A) flat-panel TV sets.
B) cigarettes.
C) cell phone handsets.
D) cars and light trucks.
E) HDTV sets.
Answer: B
Difficulty: Easy
Chapter LO: 4
AACSB: Analytical thinking
Course LO: Identify and describe the processes and tools of strategic marketing
65) A person who assumes that his or her home country is superior to the rest of the world is said to have:
A) ethnocentric orientation.
B) polycentric orientation.
C) regiocentric orientation.
D) geocentric orientation.
E) None of the above
Answer: A
Difficulty: Moderate
Chapter LO: 5
AACSB: Application of knowledge
Course LO: Describe the global marketing environment today and explain the options companies consider as they go global
66) Nissan's earlier vehicles were difficult to start in many parts of the United States during the cold
winter months. In northern Japan, it was customary for many car owners to put blankets over the hoods of their cars during winter months. Nissan's assumption was that Americans would do the same thing. This is an example of:
A) ethnocentric orientation.
B) polycentric orientation.
C) regiocentric orientation.
D) geocentric orientation.
E) geopolitic orientation.
Answer: A
Difficulty: Moderate
Chapter LO: 5
AACSB: Application of knowledge
Course LO: Describe the global marketing environment today and explain the options companies consider as they go global
67) The cell phone divisions of Toshiba, Sharp, and other Japanese companies prospered by focusing on the domestic market. When handset sales in Japan slowed a few years ago, the Japanese companies realized that Nokia, Motorola, and Samsung already dominated key world markets. Atsutoshi Nishida, president of Toshiba, noted, "We were thinking only about Japan. We really missed our chance." This example illustrates:
A) geocentric orientation.
B) regiocentric orientation.
C) polycentric orientation.
D) ethnocentric orientation.
E) poor globalization orientation.
Answer: D
Difficulty: Moderate
Chapter LO: 6
AACSB: Application of knowledge
Course LO: Describe the global marketing environment today and explain the options companies consider as they go global
68) Unilever, the Anglo-Dutch consumer products company, at one time had 30 different package designs and 48 different formulations for its Rexona deodorant brand. This is an example of:
A) ethnocentric orientation.
B) polycentric orientation.
C) regiocentric orientation.
D) geocentric orientation.
E) transnational orientation.
Answer: B
Difficulty: Moderate
Chapter LO: 6
AACSB: Application of knowledge
Course LO: Describe the global marketing environment today and explain the options companies consider as they go global
69) Transnational companies, such as Toyota and Honda, have characteristic features that include:
A) being in both global markets and utilizing global supply chains.
B) characterized by a mind-set of being "stateless."
C) using both localized and standardized elements in marketing programs.
D) decisions made on the basis of ongoing research.
E) all of the above
Answer: E
Difficulty: Moderate
Chapter LO: 5
AACSB: Application of knowledge
Course LO: Describe the global marketing environment today and explain the options companies consider as they go global
70) Nestlé, Unilever, GlaxoSmithKline, and Royal Philips Electronics can be considered transnational companies on the basis of:
A) sales outside the home country to total sales.
B) assets outside the home country to total assets.
C) employees outside the home country to total employees.
D) headquartered in a relatively small home-country market.
E) all of the above
Answer: E
Difficulty: Moderate
Chapter LO: 6
AACSB: Application of knowledge
Course LO: Describe the global marketing environment today and explain the options companies consider as they go global
71) A type of advantage that a global company possesses by virtue of the fact that it has experience in more than one country is referred to as:
A) Leverage.
B) Transferability.
C) Flexibility.
D) Capability.
E) Enability.
Answer: A
Difficulty: Moderate
Chapter LO: 6
AACSB: Application of knowledge
Course LO: Describe the global marketing environment today and explain the options companies consider as they go global
72) A number of multilateral trade agreements have accelerated the pace of global integration which include:
A) NAFTA.
B) GATT.
C) WTO.
D) EU.
E) all of the above
Answer: E
Difficulty: Easy
Chapter LO: 6
AACSB: Application of knowledge
Course LO: Describe the global marketing environment today and explain the options companies consider as they go global
73) Pfizer, Merck, Novartis, and other pharmaceutical companies have little choice but to engage in global marketing since:
A) there is little demand for their products in home countries.
B) their research centers are located overseas.
C) no single market is large enough to recover costs incurred in research.
D) there is more demand overseas for their products.
E) technology is not available in home countries.
Answer: C
Difficulty: Moderate
Chapter LO: 6
AACSB: Reflective thinking
Course LO: Describe the global marketing environment today and explain the options companies consider as they go global
74) In their book, Daniel Yergin and Joseph Stanislaw wrote "It is the greatest sale in the history of the world. Governments are getting out of businesses by disposing of what amounts to trillions of dollars of assets. Everything is going—from steel plants and phone companies . . . to hotels, restaurants, and nightclubs." This is an indication of:
A) the fact that governments can make more money by selling assets.
B) privatization is becoming a driving force for global marketing.
C) these businesses are considered as closed markets.
D) foreign companies are competing with governments.
E) there is less demand for these type of companies.
Answer: B
Difficulty: Difficult
Chapter LO: 6
AACSB: Analytical thinking
Course LO: Identify factors that influence a company's micro environment and macro environment
75) When a country like China is experiencing rapid economic growth, policymakers are likely to:
A) look more favorably on outsiders.
B) look less favorably on outsiders.
C) experience more resistance toward outsiders.
D) feel threatened by outsiders.
E) None of the above
Answer: A
Difficulty: Moderate
Chapter LO: 6
AACSB: Analytical thinking
Course LO: Identify factors that influence a company's micro environment and macro environment
76) H.F. Iskander, general manager of Chevron's Kuwait office, stated "Chevron is pumping oil in different locations all over the world . . . there isn't a rock we haven't drilled through. We centralize all that knowledge at our headquarters, analyze it, sort it out, and that enables us to solve any oil-drilling problem anywhere." From the global marketing point of view this is an example of a global company:
A) that is hungry to exploit natural resources.
B) that is trying to be first to explore oil.
C) that it is trying to solve world problems.
D) that gains leverage through experience transfers.
E) that does not have easy access to information.
Answer: D
Difficulty: Moderate
Chapter LO: 6
AACSB: Analytical thinking
Course LO: Identify factors that influence a company's micro environment and macro environment
77) Japan's giant Matsushita Electric Company achieved scale economies by exporting VCRs, televisions, and other consumer electronics products throughout the world from world-scale factories in Japan. This is an example of the fact that:
A) scale economies were a cornerstone of Japanese success in the 1970s and 1980s.
B) leverage from scale economies is not limited to manufacturing.
C) a global company can achieve the same economies on a global scale.
D) the larger scale of the global company also creates opportunities to improve corporate staff competence and quality.
E) all of the above
Answer: E
Difficulty: Moderate
Chapter LO: 6
AACSB: Analytical thinking
Course LO: Identify factors that influence a company's micro environment and macro environment
78) Anheuser-Busch, the brewer of Budweiser beer, lost its independence after years of focusing primarily on the domestic U.S. market. This is most likely a result of:
A) management myopia.
B) national controls.
C) opposition to globalization.
D) newcomers from emerging markets.
E) organizational culture.
Answer: A
Difficulty: Moderate
Chapter LO: 6
AACSB: Analytical thinking
Course LO: Identify factors that influence a company's micro environment and macro environment
79) In the United States, some people believe that globalization has depressed the wages of American workers and resulted in the loss of both blue-collar and white-collar jobs. This is an example of:
A) discrimination.
B) domination.
C) globaphobia.
D) management myopia.
E) economic crisis.
Answer: C
Difficulty: Moderate
Chapter LO: 6
AACSB: Analytical thinking
Course LO: Identify factors that influence a company's micro environment and macro environment
80) McDonald's restaurants are found in more than 118 countries. To ensure high levels of consistency and quality, the company's far-flung restaurant system incorporates many standardized elements (e.g. restaurant design, burgers/fries/soft drinks as basic menu offerings). However, McDonald's also prides itself on sourcing many of its food inputs (e.g. potatoes and dairy products) in individual host countries. McDonald's strives to be locally responsive—it creates new menu items specifically designed with local eating customs and preferences in mind. Typically, McDonald's forms joint ventures with local partners, a tactic that ensures that a local "face" is associated with the company. Finally, McDonald's has been in many country markets long enough that a new generation of consumers has grown up with McDonald's and are not aware of the company's U.S. origins. On the basis of this summary, what is the highest stage of corporate development that McDonald's arguably has achieved?
A) international
B) multinational
C) global
D) transnational
E) myopic
Answer: D
Difficulty: Difficult
Chapter LO: 6
AACSB: Analytical thinking
Course LO: Identify factors that influence a company's micro environment and macro environment
81) What is "global marketing" and how does it differ from "regular marketing"? Giving examples of at least one major corporation, explain these differences.
Answer: Marketing is an organizational function and a set of processes for creating, communicating, and delivering value to customers. An organization that engages in global marketing focuses its resources and competencies on global market opportunities and threats. A fundamental difference between "regular marketing" and "global marketing" is the scope of activities. A company that engages in global marketing conducts important business activities outside the home-country market. For example, as Walmart expands into Guatemala and other Central America countries, it is implementing a market development strategy.
Difficulty: Easy
Chapter LO: 1
AACSB: Application of knowledge
Course LO: Discuss the fundamental concepts of marketing
82) What is meant by competitive advantage? Explain, giving examples as to how globalization presents companies with unprecedented opportunities to reconfigure themselves.
Answer: When a company succeeds in creating more value for customers than its competitors, that company is said to enjoy "competitive advantage." It is measured relative to rivals in a given industry. For example, Coca-Cola and Pepsi are trying to maintain a competitive advantage in global markets. Globalization presents companies with unprecedented opportunities as well as challenges. Achieving competitive advantage in a global industry requires executives and managers to maintain a well-defined strategic focus. Globalization provides companies to develop new products, get new ideas, develop markets, expand brand recognition, and eventually profits.
Difficulty: Moderate
Chapter LO: 2
AACSB: Application of knowledge
Course LO: Discuss the fundamental concepts of marketing
83) What are the dimensions of global marketing strategy (GMS) that pertain to marketing management? Explain in detail giving examples.
Answer: GMS has three dimensions that pertain to marketing management. First, "concentration of marketing activities" such as promotional campaigns or pricing decisions is performed in one or a few country locations. The second, "coordination of marketing activities," refers to the extent to which marketing activities related to the marketing mix are planned and executed interdependently around the globe. Finally, "integration of competitive moves" is the extent to which a firm's competitive marketing tactics in different parts of the world are interdependent. In essence, GMS should enhance the firm's performance on a worldwide basis.
Difficulty: Moderate
Chapter LO: 3
AACSB: Application of knowledge
Course LO: Discuss the fundamental concepts of marketing
84) Describe how the global marketing strategy is different when compared to that of single country marketing.
Answer: In single country marketing, choosing a target market and developing a marketing mix are two important considerations. The same two aspects are also important in global marketing; however, they are viewed from a different perspective. There is standardization or adaptation in each of the marketing mix components in each country where business is conducted. Global marketing strategy has three additional dimensions that pertain to marketing management: concentration of marketing activities, coordination of marketing activities, and integration of competitive moves.
Difficulty: Moderate
Chapter LO: 3
AACSB: Application of knowledge
Course LO: Discuss the fundamental concepts of marketing
85) The Coca-Cola Company has convincingly demonstrated that the ability to think globally and act locally can be a source of competitive advantage. Justify this statement using examples.
Answer: Coke achieved success in Japan by spending a great deal of time and money to become an insider. The company built a complete local infrastructure with its sales force and vending machine operations. Coke's success in Japan is a function of its ability to achieve "global localization," being as much of an insider as a local company but still reaping the benefits of world-wide operations. The company is adept at adapting sales promotion, distribution, and customer service efforts to local needs. Coke has become one of the brands that have spent time and money getting this experience in unknown territories.
Difficulty: Difficult
Chapter LO: 2
AACSB: Application of knowledge
Course LO: Discuss the fundamental concepts of marketing
86) Using McDonald's as an example, show how effective global marketing can be successfully achieved.
Answer: The particular approach to global marketing that a company adopts will depend on industry conditions and its source or sources of competitive advantage. McDonald's standardized product is Big Mac which is localized in various countries, such as McAloo Tikka Burger in India. Similar products with local slang names were used adapting to tastes in different countries. For promotion the standardized slogan "I'm lovin' it" is used whereas individual promotion is used in different countries. Freestanding restaurants are a standardized version, which is localized in several countries by having kiosks or home delivery. Similarly, the average price of Big Mac is used as a standard which is localized on the basis of currency fluctuation and affordability.
Difficulty: Moderate
Chapter LO: 3
AACSB: Application of knowledge
Course LO: Discuss the fundamental concepts of marketing
87) In an effort to "Americanize" the sound of the Beatles' recordings, a studio effect known as reverb was added to some tracks. From the global marketing perspective, what does this change represent?
Answer: The early albums released in the United Kingdom differed from releases in the United States as well as in other countries. EMI sent master tapes to various countries, often customizing them at the request of the local company. Reverb makes a dry (unprocessed) sound compared to the wetter echo-like sound preferred by Americans. In addition, some of the original mono and stereo tracks were remixed for the American market. Converting it to suit the local market is referred to as both product adaptation and product extension.
Difficulty: Moderate
Chapter LO: 3
AACSB: Application of knowledge
Course LO: Discuss the fundamental concepts of marketing
88) How do ethnocentric orientations of a company differ from polycentric orientations? Give examples of how companies react under both orientations.
Answer: 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. Polycentric orientation is the opposite of ethnocentric orientation, where a manager assumes that each country in which a company does business is unique. In ethnocentric orientation, foreign operations or markets are typically viewed as being secondary or subordinate to domestic ones. For example Nissan's ethnocentric orientation caused the managers to believe that consumers all over the world should be able to behave as Japanese. In Northern Japan, people would put blankets over the hoods of their cars during cold winters and managers assumed that people in the United States should be able to do the same. Citicorp's financial company executives have polycentric orientation, where the assumption was that each country is different, and there is a need for a localized or adaptation approach.
Difficulty: Moderate
Chapter LO: 5
AACSB: Application of knowledge
Course LO: Discuss the fundamental concepts of marketing
89) Global marketing does not necessarily mean operating everywhere since there are forces affecting global integration and global marketing. Justify this statement using examples based on the world economic trends.
Answer: Economic growth in key developing countries creates market opportunities that provide a major incentive for companies to expand globally. Due to the rising per capita incomes in India, China, and elsewhere, the growing ranks of middle-class consumers have more money to spend than in the past. At the same time, slow growth in industrialized countries has compelled management to look ahead for opportunities in nations or regions with high rates of growth. Also, the economic growth has reduced resistance that might otherwise have developed in response to the entry of foreign firms into domestic economies. The worldwide movement toward free markets, deregulation, and privatization is also a driving force. The trend toward privatization is opening up formerly closed markets creating tremendous opportunities.
Difficulty: Easy
Chapter LO: 6
AACSB: Application of knowledge
Course LO: Discuss the fundamental concepts of marketing
90) List and briefly describe the forces affecting local integration and global marketing.
Answer: The forces affecting local integration and global marketing are (a) Multilateral Trade Agreements such as NAFTA which has expanded trade among the United States, Canada, and Mexico; (b) converging market needs and wants and the information revolution: the development of technology has a considerable impact on the market needs and wants; (c) transportation and communication improvements: the technology for transportation and communication is changing rapidly; (d) product development costs: new products require major investments and considerable time; (e) world economic trends: growing economies worldwide have an impact on global marketing; and (f) leverage: it is an advantage that a company enjoys by virtue of having experience in more than one country.
Difficulty: Moderate
Chapter LO: 6
AACSB: Application of knowledge
Course LO: Discuss the fundamental concepts of marketing
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CHAPTER 1
INTRODUCTION TO GLOBAL MARKETING
SUMMARY
A. Marketing is an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders. A company that engages in global marketing focuses resources on global market opportunities and threats. Successful global marketers such as Nestlé, Coca-Cola, and Honda use familiar marketing mix elements – the four Ps – to create global marketing programs.
B. Marketing, R&D, manufacturing, and other activities comprise a firm’s value chain the value equation (V =B/P) expresses the relationship between values and the marketing mix.
C. Global companies also maintain strategic focus while pursuing competitive advantage. The marketing mix, value chain, competitive advantage, and focus are universal in their applicability, irrespective of whether a company does business only in the home country or has a presence in many markets around the world. However, in a global industry, companies that fail to pursue global opportunities risk being pushed aside by stronger global competitors.
D. A firm’s global marketing strategy (GMS) can enhance its worldwide performance. The GMS addresses several issues. First is the nature of the marketing program in terms of the balance between a standardization (extension) approach to the marketing mix and a localization (adaptation) approach that is responsive to country or regional differences. Second is the concentration of marketing activities in a few countries or the dispersal of such activities across many countries. Companies that engage in global marketing can also engage in coordination of marketing activities. Finally, a firm’s GMS will address the issue of global market participation.
E. The importance of global marketing today can be seen in the company rankings compiled by the Wall Street Journal, Fortune, Financial Times, and other publications. Whether ranked by revenues, market capitalization, or some other measure, most of the world’s major corporations are active regionally or globally. The size of global markets for individual industries or product categories helps explain why companies “go global”. Global markets for some product categories represent hundreds of billions of dollars in annual sales; other markets are much smaller. Whatever the size of the opportunity, successful industry competitors find that increasing revenues and profits means seeking markets outside the home country.
F. Company management can be classified in terms of its orientation toward the world: ethnocentric, polycentric, regiocentric, or geocentric. The terms reflect progressive levels of development or evolution. An ethnocentric orientation characterizes domestic and international companies; international companies pursue marketing opportunities outside the home market by extending various elements of the marketing mix. A polycentric worldview predominates at a multinational company, where the marketing mix is adapted by country managers operating autonomously. Managers at global and transnational companies are regiocentric or geocentric in their orientation and pursue both extension and adaptation strategies in global markets.
G. The dynamic interplay of several driving and restraining forces shapes the importance of global marketing. Driving forces include market needs and wants, technology, transportation and communication improvements, product costs, quality, world economic trends, and recognition of opportunities to develop leverage by operating globally. Restraining forces include market differences, management myopia, organizational culture, and national controls such as nontariff barriers (NTBs).
OUTLINE OF THE BOOK
The book is divided into five parts.
Part 1: An overview of global marketing and the basic theory of global marketing.
Part 2: The environments of global marketing.
Part 3: Approaching global markets (global strategy)
Part 4: The marketing mix in global marketing.
Part 5: Corporate strategy, leadership, and the impact of the digital revolution on global marketing.
LEARNING OBJECTIVES
1 Use the product/market growth matrix to explain the various ways a company can expand globally
2 Describe how companies in global industries pursue competitive advantage
3 Compare and contrast single-country marketing strategy with global marketing strategy (GMS)
4 Identify the companies at the top of the Global 500 rankings
5 Explain the stages a company goes through as its management orientation evolves from domestic and ethnocentric to global and geocentric.
6 Discuss the driving and restraining forces affecting global integration today.
DISCUSSION QUESTIONS
1-4. What are the basic goals of marketing? Are these goals relevant to global marketing?
Marketing activities represent an organization’s efforts to satisfy customer wants and needs by offering products and services that create value. These goals are relevant in virtually every part of the world; however, when an organization pursues market opportunities outside of its home country (domestic) market, managers need an understanding of additional conceptual tools and guidelines in order to do business in these other countries – in other words, to create value and satisfy consumer needs and wants.
1-5. What is meant by “global localization?” Is Coca-Cola a global product? Explain.
The phrase “global localization” represents an attempt to capture the spirit of the rallying cry for organizations in the 21st century, namely, “think globally, act locally, and manage regionally.” Most students will agree that Coca-Cola is a global product by virtue of the fact that it is available in more than 195 countries in red cans bearing the distinctive signature style. It must be noted, however, that customer service efforts are adapted to the needs of particular markets (for example, vending machines in Japan). Thus, Coca-Cola is both global and local.
1-6. A company’s global marketing strategy (GMS) is a crucial, competitive tool. Describe some of the global marketing strategies available to companies. Give examples of companies that use the different strategies.
This question invites reference to Table 1-2. Strategies include global branding (Coca-Cola, Marlboro), product design (McDonald’s restaurants and menu items), positioning (Harley-Davidson), packaging (Gillette Sensor), distribution (Benetton), customer service (Caterpillar), and sourcing (Toyota, Gap).
1-7. UK-based Burberry is a luxury fashion brand that appeals to both genders and all ages. To improve Burberry’s competitiveness in the luxury goods market, CEO Angela Ahrendts recently unveiled a new strategy that includes all the elements of the marketing mix. Their strategy also addresses key markets that Burberry will participate in, as well as the integration and coordination of marketing activities. Search for recent articles about Burberry and write a brief summary that outlines Burberry’s GMS.
Student answers will vary, but all should contain the facts that the new CEO intends to broaden the brand’s appeal and introduce two new logos.
1-8. Discuss the differences between the global marketing strategies of Harley-Davidson and Toyota?
Harley-Davidson motorcycles are known the world over as “the” all-American motorcycle. Harley’s mystique and heritage are associated with America. The company backs up this positioning with exports from two U.S. manufacturing locations. By contrast, Toyota builds some models (e.g. Camry) for the U.S. market in the U.S., a fact that Toyota stresses in its American advertising. Thus, Harley-Davidson serves global markets while sourcing locally, while Toyota’s strategy calls for serving world markets and using the world as a source of supply.
1-9. Describe the difference between ethnocentric, polycentric, regiocentric, and geocentric management orientations.
The premise of an ethnocentric orientation is that home country products and management processes are superior. An ethnocentric company that neither sources inputs from, nor seeks market opportunities in the world outside the home country may be classified as an international company. A company that does business abroad while still presuming the superiority of the home country may be classified as an international company. Such a company would rely on an extension strategy whereby it would export, without adaptation, products designed for the domestic market.
The polycentric orientation that predominates at a multinational company leads to a view of the world in which each country market is different from the others. Local country managers operating with a high degree of autonomy adapt the marketing mix in a polycentric, multinational company. Managers who are regiocentric or geocentric in their orientations recognize both similarities and differences in world markets. Market opportunities are pursued using both extension and adaptation strategies. The regiocentric and geocentric orientations are characteristic of global transnational companies.
1-10. Identify and briefly describe some of the forces that have resulted in increased global integration and the growing importance of global marketing.
The dynamic involving driving and restraining forces is shown diagrammatically in Figure 1-2. 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.
1-11. Define leverage and explain the different types of leverage utilized by companies with global operations.
Webster’s New World Dictionary defines “leverage” as an “increased means of accomplishing some purpose.” A global company can take advantage of several types of leverage in pursuit of corporate goals such as profit or revenue growth. These include experience transfers, scale economies, enhanced resource utilization, and global strategy.
1-12. Each July, Fortune publishes its Global 500 listing of the world’s largest companies.
You can find the current rankings online at: http://money.cnn.com/magazines/fortune/
global500/2012/full list. Alternatively, you can consult the print edition of Fortune.
Browse through the list and choose any company that interests you. Compare its 2012
ranking with the most recent ranking. Has the company’s ranking changed? Consult
additional sources (e.g., magazine articles, annual reports, the company’s Web site) to
get a better understanding of the factors and forces that contributed to the company’s
move up or down in the rankings. Write a brief summary of your findings.
Each student’s answer will vary based upon the company they chose.
1-13. There’s a saying in the business world that “nothing fails like success”. Take Gap, for example. How can a fashion retailer that was once the source for wardrobe staples such as chinos and white T-shirts suddenly lose its marketing edge? Motorola has also fallen victim to its own success. The company’s Razr cell phone was a huge hit, but Motorola struggled to leverage that success. Now, Google owns Motorola Mobility. Also, Starbucks CEO Howard Shultz recently warned that his company and brand risk becoming commoditized. And, as noted in Case 1-3, some industry observers are saying that Apple has “lost its cool”. If you were to make separate recommendations to management at each of these companies, what would you say?
Each student’s answer will vary but their answers should incorporate such terms as global marketing, marketing mix strategy, value chain, V = B/P, strategic focus, global marketing strategy, extension, adaption, ethnocentric, polycentric, regiocentric, or geocentric orientations in their responses. Perhaps, a phrase that could be said to each of these chief executives is “think globally, act locally”.
OVERVIEW
The growing importance of global marketing is one aspect of a sweeping transformation that has profoundly affected the people and industries of many nations during the past 160 years.
Four decades ago, the phrase global marketing did not even exist. Today businesspeople utilize global marketing to realize their companies’ full commercial potential. However, there is another, even more critical reason why companies need to take global marketing seriously: survival. A management team that fails to understand the importance of global marketing risks losing its domestic business to competitors with lower costs, more experience, and better products.
But what is global marketing? How does it differ from “regular” marketing? Marketing can be defined as the activity, set of institutions, and processes for creating, communicating, and delivering value for customers, clients, partners, and society at large.
Marketing activities center on an organization’s efforts to satisfy customer wants and needs with products and services that offer competitive value and for managing customer relationships in ways that benefit the organization and its stakeholders. The marketing mix (product, price, place, and promotion) comprises a contemporary marketer’s primary tools. Marketing is a universal discipline – as applicable in Argentina as it is in Zimbabwe.
ü (Learning Objective #1)
This book is about global marketing. An organization that engages in global marketing focuses its resources and competencies on global market opportunities and threats. A fundamental difference between regular marketing and global marketing is the scope of activities. A company that engages in global marketing conducts important business activities outside the home-country market. The scope issue can be conceptualized in terms of the familiar product/market matrix of growth strategies (see Table 1-1). Some companies pursue a market development strategy; this involves seeking new customers by introducing existing products or services to a new market segment or to a new geographical market.
Global marketing can also take the form of a diversification strategy in which a company creates new product or service offerings targeting a new segment, a new country, or a new region. Four of the growth strategies shown in Table 1-1:
(Chapter 1, Page 5)
Four Stages - Starbucks
Market penetration: Starbucks is building on its loyalty card and rewards program in the United States with a smartphone app that enables customers to pay for purchases electronically. The app displays a bar code that the barista can scan.
Market development: Starbucks is entering India via an alliance with the Tata Group. Phase one calls for sourcing coffee beans in India and marketing them at Starbucks stores throughout the world. The next phase will likely involve opening Starbucks outlets in Tata’s upscale Taj hotels in India.
Product development: Starbucks created a brand of instant coffee, Via, to enable its customers to enjoy coffee at the office and other locations where brewed coffee is not available. After a successful launch in the United States, Starbucks rolled out Via in Great Britain, Japan, South Korea, and several other Asian countries.
Diversification: Starbucks has launched several new ventures, including music CDs and movie production. Next up: Revamping stores so they can serve as wine bars and attract new customers in the evening.
Companies that engage in global marketing frequently encounter unique or unfamiliar features in specific countries or regions of the world. In some regions of the world, bribery and corruption are deeply entrenched. A successful global marketer understands specific concepts and has a broad and deep understanding of the world’s varied business environments. He or she also must understand the strategies that, when skillfully implemented in conjunction with universal marketing fundamentals, increase the likelihood of market success.
ANNOTATED LECTURE/OUTLINE
Principles of Marketing: A Review
Marketing is one of the functional areas of business – distinct from finance and operations.
Marketing is the set of activities and processes that (along with product design, manufacturing, and transportation) comprises a firm’s value chain.
Decisions at every stage of the process – from idea conceptualization to customer support after the sale – should be assessed in terms of their ability to create value for customers.
The core of marketing is to surpass the competition in creating perceived value for customers. The value equation is the guide to this task:
Value = Benefits / Price (money, time, effort, etc.)
The marketing mix is central to this equation because benefits are a combination of the product, promotion, and distribution components of the mix.
Value to the customer can be increased in two ways – 1) an improved bundle of benefits or 2) a lower price (or both):
1) Marketers may improve the product, design new channels of distribution, communicate better – or a combination of all three.
2) Marketers may seek ways to cut costs or lower the price. Nonmonetary costs may be lowered by decreasing the time and effort customers must expend to learn about or acquire a product.
If a company is able to offer a combination of superior product, distribution, and promotion of the benefits AND offer lower prices than its competition, it should enjoy an extremely advantageous position. Recall the definition of a market: people or organizations that are both able and willing to buy. In order to achieve market success, a product or brand must measure up to a threshold of acceptable quality and be consistent with buyer behavior, expectations, and preferences
Competitive Advantage, Globalization, and Global Industries
ü (Learning Objective #2)
When a company succeeds in creating more value for customers than its competitors, that company is said to enjoy competitive advantage in an industry. Competitive advantage is measured relative to rivals with whom you compete in the industry – whether that is on a local, national, or global level.
Global marketing is essential if a company competes in a global industry or one that is globalizing.
The process of globalization is the transformation of formerly local or national industries into global ones.
From a marketing point of view, globalization presents companies with tantalizing opportunities—and challenges—as executives decide whether to offer their products and services everywhere.
As defined by management guru Michael Porter, a global industry is one in which competitive advantage can be achieved by integrating and leveraging operations on a worldwide scale. Put another way, an industry is global to the extent that a company’s industry position in one country is interdependent with its industry position in other countries. Indicators of globalization include the ratio of cross-border trade to total worldwide production, the ratio of cross-border investment to total capital investment, and the proportion of industry revenue generated by companies that compete in all key world regions. One way to determine the degree of globalization in an industry sector is to calculate the ratio of the annual value of global trade in the sector—including components shipped to various countries during the production process—to the annual value of industry sales.
Achieving competitive advantage in a global industry requires executives and managers to maintain a well-defined strategic focus. Focus is simply the concentration of attention on a core business or competence. Companies that understand and engage in global marketing can offer more overall value to customers than companies that do not have that understanding.
Global Marketing: What It Is and What It Isn’t
The discipline of marketing is universal. It is natural, however, that marketing practices will vary from country to country, for the simple reason that the countries and peoples of the world are different. A successful marketing approach in one country may not necessarily succeed in another. Customer preferences, competitors, channels of distribution, and communication media may differ. An important managerial task in global marketing is learning to recognize the extent to which it is possible to extend marketing plans and programs worldwide, as well as the extent to which adaptation is required.
ü (Learning Objective #3)
The way a company addresses this task is a reflection of its global marketing strategy (GMS). In single-country marketing, strategy development addresses two fundamental issues: choosing a target market and developing a marketing mix. The same two issues are at the heart of a firm’s GMS, although they are viewed from a somewhat different perspective (see Table 1-2).
The Cultural Commentary from Great Britain
Tells the story about how the rock band the Kinks were a hit in the US and other western countries in the 60’s due to their globalization of their music and the story of Ford’s plant in England now accounting for 25% of the company’s engine manufacturing.
a) Global market participation – is the extent to which a company has operations in major world markets.
b) Standardization versus adaptation – is the extent to which each marketing mix element can be standardized (used the same way) or must be adapted (used in different ways) in different country markets.
c) Concentration of marketing activities – is the extent to which activities related to the marketing mix (such as pricing decisions) are performed in one or only a few country locations.
d) Coordination of marketing activities – is the extent to which marketing activities related to the mix are planned and executed interdependently around the globe.
e) Integration of competitive moves – the extent to which a firm’s competitive marketing tactics in different parts of the world are interdependent.
The decision to enter one or more particular markets outside the home country depends on a company’s resources, its managerial mind-set, and the nature of opportunities and threats.
Global marketing does mean widening business horizons to encompass the world in scanning for opportunities and threats.
The four emerging markets of Brazil, Russia, India, and China represent significant growth opportunities. They are known as BRIC. Mexico, Indonesia, Nigeria, and Turkey—the so-called MINTs—also hold great potential.
We can use Burberry as a case study in global marketing strategy. The U.K.-based luxury brand is available in scores of countries, and Burberry’s current expansion plans emphasize several geographical areas. Burberry’s marketing mix strategy includes the following:
Product: Boost sales of handbags, belts, and accessories—products whose sales are less cyclical than clothing.
Price: More expensive than Coach, less expensive than Prada. “Affordable luxury” is central to the value proposition.
Place: Burberry intends to open more independent stores in the United States.
Promotion: Roll out new logo to reduce “plaid overexposure.” Use social media such as Twitter and www.artofthetrench.com.
The issue of standardization versus adaption has been at the center of a long-standing controversy among both academicians and business practitioners. Much of the controversy dates back to the days of Theodore Levitt’s (1983) “homogenized global market.” Levitt envisioned a global community where standardized, high-quality world products would be marketed in a standardized manner.
The “homogenized global market” view didn’t work. Even those companies that have become global successes have not done so through total standardization of the product.
Global marketing made Coke a worldwide success. However, that success was not based on a total standardization of marketing mix elements.
Coca-Cola succeeded through the application of global localization. What does the term “global localization” really mean? Global localization: Think globally, act locally (refer to Table 1-3).
a) For example, Cinnabon’s customers in Central and South America prefer dulce de leche. Products developed in those regions being introduced in the U.S., where the Hispanic population is a key segment.
b) Starbucks opened an experimental store in Amsterdam that serves as a testing ground for new design concepts such as locally sourced and recycled building materials.
c) Kraft’s Tang powder became a $ 1 billion brand as regional managers in Latin American and the Middle East moved beyond orange (the top-seller) into popular local flavors such as mango and pineapple. Kraft plans to use these lessons learned on the U.S. market.
Global marketing may include a combination of standard and nonstandard approaches. Global marketing requires marketers to think and act in a way that is both global and local by responding to similarities and differences in world markets (refer to Exhibit 1-4).
The particular approach to global marketing that a company employs will depend on industry conditions and its sources of competitive advantage.
For example, McDonald’s global marketing strategy is based on a combination of global and local marketing mix elements (refer to Table 1-4).
a) For example, Harley-Davidson’s competitive advantage is based in part on “Made in the USA.” Moving production to a low-wage country would tarnish its image.
b) Toyota’s and Honda’s success in the US has come through its ability to transfer world-class manufacturing skills to America and advertising that the Camry is “Made in the USA” by Americans.
c) Uniqlo, a division of Japan’s Fast Retail operates about 850 stores in Japan and 300 stores in 12 overseas countries. Uniqlo currently has 6 stores in the U.S. but plans call for a total of 200 stores by 2020.
The Importance of Global Marketing
The largest single market in the world in terms of national income is The United States, representing roughly 25 percent of the total world market for all products and services.
U.S. companies that wish to achieve maximum growth potential must “go global” because 75 percent of the world market potential is outside of their home country.
Non-US companies have an even greater incentive to “go global;” their potential markets include the 300 million people in the US.
Management Orientations
ü (Learning Objective #5)
The form and substance of a company’s response to global market opportunities will depend greatly on its management’s assumptions and beliefs – both conscious and unconscious - about the nature of the world.
The world view of a company’s personnel can be described as ethnocentric, polycentric, regiocentric, and geocentric. The orientations are collectively known as the EPRG framework.
Ethnocentric Orientation:
a) A person who assumes that his/her home country is superior to the rest of the world.
b) Associated with national arrogance or feelings of national superiority.
c) At some companies, the ethnocentric orientation means that opportunities outside of the home country are routinely ignored (domestic companies).
d) Ethnocentric companies that conduct business outside their home country are known as international companies – they believe products that succeed in the home country are superior.
e) Leads to a standardized or extension approach – the belief that products can be sold everywhere without adaptation.
f) Foreign operations or markets are viewed as inferior or subordinate to the home market.
g) Headquarters knowledge is applied everywhere; local knowledge is viewed as unnecessary.
Polycentric Orientation:
a) The opposite view of ethnocentrism.
b) The belief that each country in which you do business is unique.
c) This assumption allows each subsidiary to develop its own unique marketing strategies in order to succeed.
d) The term multinational company is often used to describe such a structure.
e) Leads to a localized or adaptation view that assumes products MUST be adapted to succeed.
Regiocentric Orientation:
a) The region becomes the relevant geographic unit.
b) Management’s goal is to develop a regionally integrated strategy (e.g. NAFTA or the EU).
c) May be viewed as a variant of the multinational view (polycentric).
Geocentric Orientation:
a) Views the entire world as a potential market and strives to develop integrated global strategies.
b) These companies are known as global or transnational companies.
c) Serves world markets from a single country or sources globally for the purposes of focusing on select country markets.
d) Tend to maintain their association with a particular headquarters country. (Harley-Davidson and Waterford serve world markets from the US and Ireland, respectively.)
e) Transnational companies serve global markets and utilize global supply chains.
f) Transnational companies both serve global markets and utilize global supply chains and often have a blurring of national identity. A true transnational would be stateless. (Toyota and Honda are examples of companies that exhibit key characteristics of transnationality (see Exhibit 1-7)
g) A key factor that distinguishes global and transnational companies from international or multinational companies is mind-set: At global and transnational companies, decisions regarding extension and adaptation are not based on assumptions but rather on made on the basis of ongoing research into market needs and wants.
h) It is a synthesis of ethnocentrism and polycentrism – it is a “world view.”
i) Seeks to build a global strategy that is responsive to local needs and wants.
It is a positive sign that, at many companies, management realizes the need to adopt a geocentric orientation. However, the transition to new structures and organizational forms can take time to bear fruit.
A global company can be further described as one that pursues either a strategy of serving world markets from a single country or one that sources globally for the purposes of focusing on select country markets. In addition, global companies tend to retain their association with a particular headquarters country. At global and transnational companies, management uses a combination of standardized (extension) and localized (adaptation) elements in the marketing program.
One way to assess a company’s “degree of transnationality” is to compute an average of three figures: (1) sales outside the home country to total sales, (2) assets outside the home country to total assets, and (3) employees outside the home country to total employees. Viewed in terms of these metrics, Nestlé, Unilever, Royal Philips Electronics, GlaxoSmithKline, and the News Corporation can also be categorized as transnational companies.
Each is headquartered in a relatively small home country market, a fact of life that has compelled management to adopt regiocentric or geocentric orientations to achieve revenue and profit growth.
The geocentric orientation represents a synthesis of ethnocentrism and polycentrism; it is a “worldview” that sees similarities and differences in markets and countries and seeks to create a global strategy that is fully responsive to local needs and wants.
A regiocentric manager might be said to have a worldview on a regional scale; the world outside the region of interest will be viewed with an ethnocentric or a polycentric orientation, or a combination of the two.
However, recent research suggests that many companies are seeking to strengthen their regional competitiveness rather than moving directly to develop global responses to changes in the competitive environment
The ethnocentric company is centralized in its marketing management; the polycentric company is decentralized; and the regiocentric and geocentric companies are integrated on a regional and global scale, respectively. A crucial difference between the orientations is the underlying assumption for each.
The ethnocentric orientation is based on a belief in home-country superiority. The underlying assumption of the polycentric approach is that there are so many differences in cultural, economic, and marketing conditions in the world that it is futile to attempt to transfer experience across national boundaries.
A key challenge facing organizational leaders today is managing a company’s evolution beyond an ethnocentric, polycentric, or regiocentric orientation to a geocentric one. As noted in one highly regarded book on global business,
“The multinational solution encounters problems by ignoring a number of organizational impediments to the implementation of a global strategy and underestimating the impact of global competition.”
Innovation, Entrepreneurship, and the Global Startup
Kevin Plank, Under Armour
In less than 20 years Under Armour is on track to reach $ 1.5 billion in sales. Under Armour is intent on building their brand into “the biggest brand in the land”. In 2012, only 6 percent of Under Armour’s revenues were generated outside of North America. Some industry observers think Under Armour is planning significant global product introductions times to coincide with the 2016 Summer Olympic Games in Brazil.
Forces Affecting Global Integration and Global Marketing
ü (Learning Objective #6)
The remarkable growth of the global economy over the past 65 years has been shaped by the dynamic interplay of various driving and restraining forces. Regional economic agreements, converging market needs and wants, technology advances, and pressures to cut costs, pressures to improve quality, improvements in communications and transportation technology, global economic growth, and opportunities for leverage all represent important driving forces.
Converging Market Needs and Wants and the Information Revolution
A person studying markets around the world will discover cultural universals as well as differences. The common elements in human nature provide an underlying basis for the opportunity to create and serve global markets. Most global markets do not exist in nature – marketing efforts must create them. (For example, no one needs soft drinks.)
Evidence is mounting that consumer needs and wants around the world are converging today as never before. This creates an opportunity for global marketing.
Multinational companies pursuing a strategy of product adaptation run the risk of falling victim to global competitors that have recognized opportunities to serve global customers.
The information revolution — what some refer to as the “democratization of information” — is one reason for the trend toward convergence. Thanks to satellite dishes and globe-spanning TV networks (CNN and MTV), it seems as though almost everyone has the opportunity to compare their lives against everyone else’s.
The Internet is an even stronger driving force. When a company establishes a presence on the Internet, it is automatically a global company.
Transportation and Communication Improvements
Time and cost barriers associated with distance have fallen tremendously over the past 100 years. The jet airplane revolutionized communication by making it possible for people to travel around the world in less than 48 hours.
In 1970, 75 million passengers traveled internationally. By 2011, that figure rose to almost 980 million.
The newest communication technologies, such as e-mail, video teleconferencing, and Wi-Fi, mean that managers, executives, and customers can link up electronically from virtually any part of the globe without traveling at all.
A similar revolution is occurring in transportation technology. The costs associated with physical distribution – in both money and time – have been greatly reduced.
Product Development Costs
The pressure for globalization is intense when new products require major investment and long periods of development time. The pharmaceutical industry provides a good example of this driving force.
Today, the process of developing a new drug and bringing it to market can span 14 years and exceed $400 million. Such cost must be recovered globally because no single national market is likely to be large enough to support investments of this size. (Refer to Table 1- 15).
Quality
Global companies “raise the bar” for all competitors in an industry. When a global company establishes a benchmark for quality, competitors must quickly make their own improvement and come up to par. Global marketing strategies can generate greater revenue and greater operating margins, which, in turn, support design and manufacturing quality.
World Economic Trends
Prior to the global economic crisis that began in 2008, economic growth had been a driving force in the expansion of the international economy and the growth of global marketing for three reasons:
a) Economic growth in key developing countries has created market opportunities that provide a major incentive for companies to expand globally.
b) Economic growth has reduced resistance that might otherwise have developed in response to the entry of foreign firms into domestic economies. (When a country such as China experiences rapid economic growth, policy makers are more likely to look favorably on outsiders.)
c) The worldwide movement toward free markets, deregulation, and privatization is the third driving force. (Telephone company privatization is an example.)
Leverage
A global company possesses the unique opportunity to develop leverage. In the context of global marketing, leverage means some type of advantage that a company enjoys by virtue of the fact that it has experience in more than one country.
Leverage allows a company to conserve resources when pursuing opportunities in new geographical markets.
Four important types of leverage exist:
1) Experience Transfers – A global company can leverage its experience in any market in the world by drawing on management practices, strategies, products, advertising appeals, or sales or promotional ideas that have been market-tested in one country and applied to another.
2) Scale Economies – The global company can take advantage of its greater manufacturing volume to obtain traditional scale advantages. Finished products can be manufactured by combining components manufactured in scale-efficient plants in different countries.
3) Resource Utilization – A global company has the ability to scan the entire world to identify people, money, and raw materials that will enable it to compete most effectively in world markets.
4) Global Strategy – The global company’s greatest advantage is its global strategy. A global strategy is built on an information system that scans the world business environment to identify opportunities, trends, threats, and resources. A global strategy is a design to create a winning strategy on a global scale. Note: A global strategy is NO guarantee of ongoing organizational success. (Consider InBev’s acquisition of Anheuser-Bush, Daimler-Chrysler, and Deutsche Post’s DHL unit.)
Restraining Factors
Despite the impact of the driving forces previously discussed, several restraining forces may slow a company’s efforts to engage in global marketing. Luckily, in today’s world the driving forces predominate over the restraining forces. That is why the importance of global marketing is steadily growing.
Important restraining forces include:
a) Management Myopia and Organizational Culture – Management may simply ignore opportunities to pursue global marketing. A company that is ethnocentric (or “nearsighted”) will not expand geographically. Myopia is a recipe for market disaster if headquarters attempts to dictate when it should listen. Successful global marketing requires a strong local team “on the ground” to provide information about local markets.
b) National Controls – Every country protects the commercial interests of local businesses by maintaining control over market access and entry in both low- and high-tech industries. Today, tariff barriers have been largely removed in high-income countries. Still, nontariff barriers (NTBs), such as “Buy American” campaigns, make it difficult for companies to gain access to local markets.
c) Opposition to Globalization – To many people, globalization represents a threat. Globaphobia is used to describe an attitude of hostility toward trade agreements or global brands. Opponents of globalization include labor unions, university students and nongovernmental organizations (NGOs).
CASES
Case 1-1: The Global Marketplace: The Assignment
Answers given in the text book.
Case 1-1 Discussion Questions
1-14. Anheuser-Busch, which has been described as “an American icon,” is now under the ownership of a company based in Belgium. Responding to reports that some consumers planned to boycott Bud products to protest the deal, one industry observer said, “Brand nationality is all about where it was born, and also the ingredients of that beer and how they make the beer: Basically, it doesn’t matter who owns it. We are in a global world right now”. Do you agree?
Students answers will vary based on their agreement or disagreement with this statement. Good students will introduce key words like ethnocentric, polycentric, regiocentric, and geocentric in their answers to describe their view of the manufacturer of beer and how they “feel” about the national origin(s) of and about the beer they drink.
1-15. Anheuser-Busch, (A-B) has long enjoyed a reputation as a very desirable place to work. Executives were awarded well-appointed corporate suites and traveled on corporate jets; many had secretaries as well as executive assistants. When managers took commercial flights, they flew first class. Most employees received beer for free and could count on donations of beer and merchandise for community events. Tickets to Cardinal home games were also used as a marketing tool. A-B spent heavily on advertising and promotion; various advertising agencies produced about 100 new ads for A-B each year. Given these facts, what changes, if any, would you expect A-B’s new owners to make? Why?
Student answers should explain the differences in / among / between the different management orientations and compare and contrast the ethnocentric orientation of A-B beverage company versus their new Belgium owners. One could argue that A-B InBev, the new owners of A-B practice a polycentric orientation towards selling beer around the world. In that case, the marketing sales and promotional practices previously enjoyed by A-B most likely will continue. However, the executive “perks” will most likely decrease.
1-16. In 2009, Italy’s Fiat acquired a 20 percent stake in Chrysler, another iconic American company. Are you familiar with Fiat? What do you think CEO Sergio Marchionne hope to accomplish with this deal? How might Chrysler benefit from the alliance?
CEO Sergio Marchionne hopes to turn Fiat into a transnational company serving global markets and utilizing global supply chains. His strategy might be to turn Fiat into a geocentric company. Chrysler might benefit from the alliance by becoming a “global” brand instead of just an “American icon.”
1-17. Ben & Jerry’s Homemade is a quirky ice cream marketer based in Burlington, Vermont. Founders Ben Cohen and Jerry Greenfield are legendary for enlightened business practices that include a three-part mission statement: product mission, financial mission, and social mission. When the company was acquired by consumer products giant Unilever, some of the brand’s loyal customers were alarmed. What do you think was the source of their concern?
The form and substance of a company’s response to global market opportunities depends greatly on the management’s assumption or beliefs. In this case, Ben & Jerry consumers were afraid that Unilever’s management orientation would be different from the original owners views—either ethnocentric, polycentric, or regiocentric.
Case 1-2: McDonald’s Expands Globally While Adjusting Its Local Recipe
Overview: Today, McDonald’s golden arches are one of the most recognized symbols in the world, just behind the Olympic rings. While growth within the U.S. has slowed, the picture outside the U.S. has appeared brighter, until recently. However, globally, taste profiles and consumer desires are changing. McDonald’s has responded to these changes by altering their basic products (when necessary) to fit the requirements of the local markets. While not always successful, it has proven to be a winning strategy.
1-18. Identify the key elements in McDonald’s global marketing strategy (GMS). In particular, how does McDonald’s approach the issue of standardization? Does McDonald’s think global and act local? Does it also think local and act global?
The popularity of American-style hamburgers, fries, and soft drinks is growing around the world, supporting Levitt’s view of the global village. Also, the restaurants themselves offer the consumers a chance to experience for themselves a fast food legend. However, students should point out that, in many locations, menu items are adapted according to the customs and tastes of individual countries. McDonald’s offers an ideal example of “global localization.”
With McDonald’s offering of local tastes and a combination of American fare, McDonald’s thinks globally (product adaption) and acts globally (standardization).
1-19. Do you think government officials in developing countries such as Russia, China, and India welcome McDonald’s? Do consumers in these countries welcome McDonald’s? Why or why not?
Despite concerns by governments and citizens in some countries about “cultural imperialism,” McDonald’s and other franchises with well-known brand names are generally welcome. Such businesses provide both much-needed jobs and employee training.
McDonald’s 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. Finally, thanks to changing lifestyles around the globe, more people are embracing the whole concept of fast food.
1-20. The “Plan to Win” initiative is built around five factors that drive McDonald’s 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 P’s of marketing: product, price, promotion, and place. For a service marketer: people and physical evidence are also added to the mix. For McDonald’s people and physical evidence are also important P’s of marketing.
1-21. Is it realistic to expect that McDonald’s – 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 McDonald’s?
McDonald’s 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, McDonald’s 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 McDonald’s U.S. reputation. A German student noted that in Germany, good service is not associated with McDonald’s because counter-help consists of immigrants who do not exhibit the cheerful demeanor of their U.S. counterparts.
CASE 1-3: Apple versus Samsung: The Battle for Smartphone Supremacy Heats Up
Overview: Apple’s reputation was based on its proven ability to disrupt existing markets and create new markets with technical and design innovations. In some circles the launch of the iPhone 5 was viewed as an evolution, rather than a revolution. Samsung makes several versions of their Galaxy S 4 to suit the needs of different markets, Apple does not. In India, the number three smart-phone market, Apple lags far behind Samsung, offering an Android phone for about $ 100. Indian consumers pay $ 500 for an iPhone 4 and about $ 850 for the iPhone 5.
1-22. Do you own a smartphone? If so, which brand did you buy, and why?
Student answers will vary based on which phone they own.
1-23. Should Apple introduce a lower-cost iPhone to attract consumers who are not willing or able to pay a premium for an Apple device?
If Apple wants to stay in the smart-phone market, they will need to introduce a lower-cost option. Samsung’s success has proved that in the emerging country markets, this is necessary to compete.
1-24. Do you think Apple can continue to grow by developing break-through products that create new markets, as it did with the iPod, iPhone, and iPad?
Apple needs to embrace the concept of formal market research. Steve Jobs downplayed the importance of this concept saying that consumers don’t know what they want. Samsung Electronics on the other hand, relies heavily on market research. 60,000 staff members work in dozens of research centers in China, Great Britain, India, Japan, the United States, and elsewhere. Samsung designers have backgrounds in such diverse disciplines as psychology, sociology, and engineering.
1-25. How has Samsung’s global marketing strategy enabled it to compete so effectively against Apple?
In many developing countries, there is a strong demand for inexpensive mobile phones.
Some Android-based models from Android models from Samsung sell for much less than
the iPhone 5. Apple does not offer a lower-cost version of the iPhone. Samsung has
done their research and found the unsatisfied needs of the consumers.
TEACHING TOOLS AND EXERCISES
Additional Cases:
"GENICON: A Surgical Strike into Emerging Markets" by Allen H. Kupetz; Adam P. Tindall; Gary Haberland. June 2010, HBS: 910M41-PDF-ENG.
"Market Stretch" by Gavin Price and Margaret Sutherland. June 2009. HBS: 909M46-PDF-ENG.
“Global Brand Face-Off”, HBR Case Study and Commentary RO 306A. Anand P. Raman, Peter M. Thompson, Jennifer L. Aaker; Harish Manwani; Simon Clift; Masaaki Mike Kotabe.
“Mary Kay Inc: Asian Market Entry (B)”, John A. Quelch. HBS 509067.
Video: This article is from Management International Review, March 2011. It is titled “Effective Global Strategy Implementation: Structural and Process Choices Facilitating Global Integration and Coordination.”
The abstract states that this article offers “a contingency framework of global strategy implementation effectiveness on firm performance. The research question we seek to address is what the structural and process requirements are for MNEs to successfully implement global strategy through increased efficiency and effectiveness of integration and coordination across world markets. Our central premise is that MNEs' capabilities in establishing supporting structural and process mechanisms will enhance the effectiveness and efficiency of implementing their global strategies which would, in turn, lead to better firm performance.”
Link: http://www.freepatentsonline.com/article/Management-International-Review/256930786.html and here is a different link to the PDF of this document: http://www.springerlink.com/content/12181r4440117312/
This next video is just a quick two-minute video showing Pepsi’s marketing throughout the world, and how they differentiate packaging and advertising to adapt to the region in which they are marketing. It provides a good example to show how companies cater their products to different regions.
Link: http://www.youtube.com/watch?v=9q6onCYu0DA
Film: Assign “The Gods Must Be Crazy.” This classic, humor-filled movie examines the life of a bushman unaware of white culture who finds a Coca-Cola bottle in the Kalahari (dropped by a passing pilot) and promptly has his life turned around by this mystical object. It shows how our simplest acts can have far-reaching impacts. This is a great introduction to global awareness.
Out-of-Class Reading: Zou, Shaoming and S. Tamer Cavusgil, “The GMS: A Broad Conceptualization of Global Marketing Strategy and Its Effect on Performance.” Journal of Marketing 66 (October 2002) pp. 40-56.
Internet Exercise: Fortune magazine profiled the world’s richest man (http://money.cnn.com/2007/08/03/news/international/carlosslim.fortune/). Have students read and summarize this piece and use this as the basis for an in-class discussion on the changing face of world business.
Full Semester Research Assignment and Activity
This is a full semester cultural and marketing plan project designed for individuals or groups. Students should choose a country and a product / service that is not currently found in the targeted country and devise a cultural analysis and marketing plan for the chosen country.
For example, students can choose to market an automobile from the United States into a foreign country or can choose to market an automobile into the United States that is not currently available here.
At the Instructors discretion, this project can be spread over the entire semester or used as a “take home” final exam, collected in sections as the material is covered in class or any combination deemed.
Foreign students are especially encouraged to find products / services that they’ve been accustomed to or enjoyed (a favorite type of food product) here in the United States and wish to “export” to their home country.
Cultural Analysis: The data suggested in the cultural analysis includes information that helps the marketer make market-planning decisions. However, its application extends beyond product and market analysis to being an important source of information for someone interested in understanding business customs and other important cultural features of the country. This cultural analysis is composed of two parts: information on the cultural makeup of the country and the economic analysis of the country.
The information in this analysis must be more than a collection of facts. In preparing this material, you should attempt to interpret the meaning of cultural information. With that said, your country analysis should contain at least one paragraph on each of the following areas:
Per the instructor’s discretion, this section could be collected either before or after Part 2 of the text has been discussed in class (Part 2 is chapters 2, 3, 4, and 5).
PART I: Introduction to the Culture of the Country
I. Include short profiles of the company, the product to be exported and the country with which you wish to trade.
II. Brief discussion of the country’s relevant history
III. Geographical setting
a) location
b) climate
c) topography
IV. Social institutions
a) Family
i) The nuclear family
ii) The extended family
iii) Dynamics of the family
(1) Parental roles
(2) Marriage and courtship
b) Education
i) The role of education in society
(1) Primary education (quality, levels of development, etc)
(2) Secondary education (quality, levels of development, etc.)
(3) Higher education (quality, levels of development, etc.)
ii) Literacy rates
c) Political System
i) Political structure
ii) Political Parties
iii) Stability of government
iv) Special taxes
v) Role of local government
d) Legal System
i) Organization of the judiciary system
ii) Code, common, socialist, or Islamic-law country?
iii) Participation in patents, trademarks and other conventions
e) Organizations
i) Group behavior
ii) Social classes
iii) Clubs, other organizations
iv) Race, ethnicity and subcultures
f) Business customs and practices
V. Religion and aesthetics
a) Religion and other belief systems
i) Orthodox doctrines and structures
ii) Relationship with the people
iii) Which religions are prominent?
iv) Membership of each religion
v) Any powerful or influential cults?
b) Aesthetics
i) Visual arts (fine arts, plastics, graphics, public arts, colors etc.)
ii) Music
iii) Drama, ballet, and other performing arts
iv) Folklore and relevant symbols
VI. Living conditions
a) Diet and nutrition
i) Meat and vegetable consumption rates
ii) Typical meals
iii) Malnutrition rates
iv) Foods available
b) Housing
i) Types of housing available
ii) Do most people own or rent?
iii) Do most people live in one-family dwellings or with other families?
c) Clothing
i) National dress
ii) Types of clothing worn at work
d) Recreation, sports, and other leisure activities
i) Types available and in demand
ii) Percentage of income spent on such activities
e) Social security
f) Health Care
VII. Language
a) Official language(s)
b) Spoken versus written language(s)
c) Dialects
VIII. Executive Summary
After completing all of the other sections, prepare a two-page (maximum length) summary of the major points and place it at the front of the report. The purpose of an executive summary is to give the reader a brief glance at the critical points of your report. Those aspects of the culture a reader should know to do business in the country but would not be expected to know or would find different based on his or her home country should be included in this summary.
IX. Sources of information
X. Appendixes
Per the discretion of the instructor, this part could be collected after Part 3 of the textbook has been covered in the class. (Part 3 of the text includes chapter 6, 7, 8, and 9).
PART II: The Economic Analysis of the Country
The reader may find the data collected for the economics analysis guideline are more straightforward than for the cultural analysis guideline. There are two broad categories of information in this guideline: general economic data that serve as a basis for an evaluation of the economic soundness of a country and information on channels of distribution and media availability. As mentioned earlier, the guideline focuses only on broad categories of data and must be adapted to the particular company and its product needs. With that said, write at least one (1) paragraph for each of these sections.
Guideline
I. Introduction
II. Population
a) Total
i) Growth rates
ii) Number of live births
iii) Birth rates
b) Distribution of population
i) Age
ii) Sex
iii) Geographic areas (urban suburban, and rural density and concentration)
iv) Migration rates and patterns
v) Ethnic groups
III. Economic statistics and activity
c) Gross national product (GNP or GDP)
1. Total
2. Rate of growth (Real GNP or GDP)
a. Personal income per capita
b. Average family income
d) Distribution of wealth
i) Income classes
ii) Proportion of the population in each class
iii) Is the distribution distorted?
e) Minerals and resources
f) Surface transportation
i) Mode
ii) Availability
iii) Usage rates
iv) Ports.
g) Communication systems
i) Types
ii) Availability
iii) Usage rates
h) Working conditions
i) Employer-Employee relations
ii) Employee participation
iii) Salaries and benefits
i) Principal industries
i) What proportion of the GNP does each industry contribute?
ii) Ratio of private to publicly owned industries
j) Foreign Investment
i) Opportunities?
ii) Which industries?
k) International trade statistics
i) Major exports
(1) Dollar value
(2) Trends
ii) Major imports
(1) Dollar value
(2) Trends
iii) Balance-of-payments situation
(1) Surplus or deficit?
(2) Recent trends
iv) Exchange rates
(1) Single or multiple exchange rates?
(2) Current rate of exchange
(3) Trends
l) Trade restrictions
i) Embargoes
ii) Quotas
iii) Import taxes
iv) Tariffs
v) Licensing
vi) Customs duties
m) Extent of economic activity not included in cash income activities
i) Counter trades
(1) Products generally offered for counter trading
(2) Types of counter trades requested (i.e. barter, counter purchase, etc.)
(3) Foreign aid received
n) Labor force
i) Size
ii) Unemployment rates
o) Inflation rates
IV. Developments in science and technology
a) Current technology available (computers, machinery, tools etc.)
b) Percentage of GNP invested in research and development
c) Technological skills of the labor force and general population
V. Channels of distribution (macro analysis)
This section reports data on all channel middlemen available within the market. Select a specific channel as part of your distribution strategy for your marketing plan
a) Retailers
i) Number of retailers
ii) Typical size of retail outlets
iii) Customary markup for various classes of goods
iv) Methods of operation (cash/credit)
v) Scale of operation (large/small)
vi) Role of chain stores, department stores specialty shops
b) Wholesale middlemen
i) number and size
ii) Customary markup for various classes of goods
iii) Method of operation (cash/credit)
c) Import/Export agents
d) Warehousing
e) Penetration of urban and rural markets
VI. Media
This section reports data on all media available within the country or market. Select specific media as part of the promotional mix and strategy for your marketing plan.
a) Availability of media
b) Costs
i) Television
ii) Radio
iii) Print
iv) Other media (cinema, outdoor etc.)
c) Agency assistance
d) Coverage of various media
e) Percentage of population reached by each of the media
VII. Executive summary
After completing the research for this report, prepare a two-page (maximum) summary of the major economic points and place it at the front of the report
VIII. Sources of information
IX. Appendixes
Per the instructor’s discretion, this section can be used as a final exam, a take home writing assignment or group work. It can / could be used in conjunction with Part 4 of the textbook, which are chapters 10, 11, 12, 13, 14, and 15).
THE MARKETING PLAN
Market-oriented firms build strategic market plans around company objectives, markets and the competitive environment. Planning for marketing can be complicated even for one country, but when a company is doing business internationally, the problems are multiplied. Company objectives may vary from market to market and from time to time; the structure of international markets also changes periodically and from country to country; and the competitive, governmental, and economic parameters affecting market planning are in a constant state of flux. These variations require international marketing executives to be specially flexible and creative in their approach to strategic marketing planning.
PART III: Market Audit and Competitive Market Analysis
Of the guidelines presented, this is the most product or brand specific. Information in the other guidelines is general in nature, focusing on product categories, whereas data in this guideline are brand specific and are used to determine competitive market conditions and market potential.
Two different components of the planning process are reflected in this guideline. Information in Parts I and II, Cultural Analysis and Economic Analysis, serve as the basis for an evaluation of the product or brand in a specific country market.
Information in this guideline provides an estimate of market potential and an evaluation of the strengths and weaknesses of competitive marketing efforts. The data generated in this step are used to determine the extent of adaptation of the company’s marketing mix necessary for successful market entry and to develop the final step, the action plan.
The detailed information needed to complete this guideline is not necessarily available without conducting a thorough marketing research investigation. Thus another purpose of this part of the country notebook is to identify the correct questions to ask in a formal market study.
Write at least one (1) paragraph on each in each of these areas.
I. Introduction
II. The Product
A. Evaluate the product as an innovation as it is perceive by the intended market.
1. Relative advantage
2. Compatibility
3. Complexity
4. Trialability
5. Observability
B Major problems and resistance to product acceptance based on the preceding evaluation
III. The Market
A. Describe the market(s) in which the product is to be sold
1. Geographical region(s)
2. Forms of transportation and communication available in that (those) region(s)
3. Consumer buying habits
a. Product-use patterns
b. Product feature preferences
c. Shopping habits
4. Distribution of the product
a. typical retail outlets
b. Product sales by other middlemen
5. Advertising and promotion
a. Advertising media usually used to reach your target market(s)
b. Sales promotions customarily used (sampling, coupons, etc.)
6. Pricing strategy
a. Customary markup
b. Types of discounts available
B. Compare and contrast your product and the competition’s product(s).
1. Competitor’s product(s)
a. Brand name
b. Features
c. Package
2. Competitor’s prices
3. Competitor’s promotion and advertising methods
4. Competitor’s distribution channels
C. Market size
1. Estimated industry sales for the planning year
2. Estimated sales for your company for the planning Year
D. Government participation in the marketplace
1. Agencies that can help you.
2. Regulations you must follow
IV. Executive Summary
Based on your analysis of the market, briefly summarize (two-page maximum) the major problems and opportunities requiring attention in your marketing mix, and place the summary at the front of the report
V. Sources of information
VI. Appendixes
SUGGESTED READINGS
Books
Arnold, David. The Mirage of Global Markets. Upper Saddle River, NJ: Pearson Education, 2004.
Barnet, Richard J., and John Cavanaugh. Global Dreams: Imperial Corporations and the New World Order. New York: Simon & Schuster, 1994.
Bartlett, Christopher A., Sumantra Ghoshal, and Paul W. Beamish. Transnational Management, 5th edition. New York: McGraw-Hill/Irwin, 2006.
Bryan, Lowell. Race for the World: Strategies to Build a Great Global Firm. Boston: Harvard Business School Press, 1999.
Doremus, Paul. The Myth of the Global Corporation. Princeton, NJ: Princeton University Press, 1998.
Friedman, Thomas L. The World Is Flat 3.0: A Brief History of the Twenty-First Century, New York, Picador 2005.
Friedman, Thomas L. The Lexus and the Olive Tree. New York: Anchor Books, 2000.
Garten, Jeffrey. World View: Global Strategies for the New Economy. Cambridge, MA: Harvard University Press, 2000.
Greider, William. One World, Ready or Not: The Manic Logic of Global Capitalism. New York: Simon & Schuster, 1997.
Johnson, Chalmers. Japan, Who Governs? The Rise of the Developmental State. New York: W. W. Norton, 1995.
Kets de Vries, Manfred F.R., and Elizabeth Florent-Treacy. The New Global Leaders: Richard Branson, Percy Barnevik, David Simon and the Remaking of International Business. San Francisco: Jossey-Bass, 1999.
Kynge, James. China Shakes the World. New York: Houghton Mifflin, 2006.
McGregor, James. One Billion Customers: Lessons from the Front Lines of Doing Business with China. New York: Free Press, 2005.
Micklethwait, John, and Adrian Wooldridge. A Future Perfect: The Challenge and Hidden Promise of Globalization. New York: Crown Publishers, 2000.
Ohmae, Kenichi. The End of the Nation State: The Rise of Regional Economies. New York: Free Press, 1995.
Watson, James L., ed. Golden Arches East: McDonald's in East Asia. Stanford, CA: Stanford University Press, 1997.
Wendt, Henry. Global Embrace: Corporate Challenges in a Transnational World. New York: HarperBusiness, 1993.
Yergin, Daniel, and Joseph Stanislaw. The Commanding Heights. New York: Simon & Schuster, 1998.
Articles
Bartlett, Christopher A., and Sumantra Ghoshal. “Going Global: Lessons from Late Movers.” Harvard Business Review 78, no. 2 (March-April 2000), pp. 132-142.
Craig, C. Samuel, and Susan P. Douglas. “Responding to the Challenges of Global Markets: Change, Complexity, Competition, and Conscience.” Columbia Journal of World Business 31, no. 4 (Winter 1996), pp. 6-18.
Griffith, David A. "Understanding Multi-level Institutional Convergence Effects on International Market Segments and Global Marketing Strategy" Journal of World Business Volume 45, Issue 1, January 2010, Pages 59–67.
Halal, William E. “Global Strategic Management in a New World Order.” Business Horizons 36, no. 6 (November-December 1993), pp. 5-10.
Hu, Tao-Su. “Global or Stateless Corporations are National Firms with International Operations.” California Management Review 34, no. 2 (Winter 1992), pp.107-126.
Lazer, William. “Changing Dimensions of International Marketing Management.” Journal of International Marketing 1, no. 3 (1993), pp. 93-103.
Li Jiato, and Stephen Guisinger, “How Well Do Foreign Firms Compete in the United States?” Business Horizons 34, No. 6 (November-December 1991), pp. 49-53.
Morrison, Allen J., David A. Ricks, and Kendall Roth. “Globalization Versus Regionalization: Which Way for the Multinational?” Organizational Dynamics (Winter 1991), pp. 17-29.
Quelch, John A. and Edward J. Hoff. “Customizing Global Marketing.” Harvard Business Review (May-June 1986), pp. 59-68.
Zou, Shaoming, and S. Tamer Cavusgil. “The GMS: A Broad Conceptualization of Global Marketing Strategy and Its Effect on Performance.” Journal of Marketing 66 (October 2002), pp. 40-56.
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