Question 1

Restrictive product standards are ________.

Accepted Answer

A)  tariffs 
B)  excise duties 
C)  quotas 
D)  nontariff trade barriers 
E)  exchange controls 
A)  tariffs 
B)  excise duties 
C)  quotas 
D)  nontariff trade barriers 
E)  exchange controls

Question 2

________ consists of creating something new to meet the needs of consumers in a given country.

Accepted Answer

A)  Product adaptation 
B)  Straight product extension 
C)  Undifferentiated marketing 
D)  Product invention 
E)  Standardized manufacturing 
A)  Product adaptation 
B)  Straight product extension 
C)  Undifferentiated marketing 
D)  Product invention 
E)  Standardized manufacturing

Question 3

Providing a host-country partner the right to use a company's manufacturing process,trademark,patent,trade secret,or other item of value is referred to as ________.

Accepted Answer

A)  joint ownership 
B)  direct exporting 
C)  direct investment 
D)  management contracting 
E)  licensing 
A)  joint ownership 
B)  direct exporting 
C)  direct investment 
D)  management contracting 
E)  licensing

Question 4

Which of the following is most likely a drawback of contract manufacturing?

Accepted Answer

A)  There are low chances of quickly starting the process. 
B)  There is decreased control over the manufacturing process. 
C)  There are significant political and economic risks involved. 
D)  There is little opportunity of later forming a partnership. 
E)  There is no possibility of buying out the local manufacturer. 
A)  There are low chances of quickly starting the process. 
B)  There is decreased control over the manufacturing process. 
C)  There are significant political and economic risks involved. 
D)  There is little opportunity of later forming a partnership. 
E)  There is no possibility of buying out the local manufacturer.

Question 5

________ ventures consist of one company collaborating with foreign investors to create a local business in which they share possession and control.

Accepted Answer

A)  Licensing 
B)  Direct investment 
C)  Contract manufacturing 
D)  Management contracting 
E)  Joint ownership 
A)  Licensing 
B)  Direct investment 
C)  Contract manufacturing 
D)  Management contracting 
E)  Joint ownership

Question 6

Which of the following is a drawback of management contracting?

Accepted Answer

A)  It prevents a company from setting up its own operations for a period of time. 
B)  It is a high-risk method of getting into a foreign market. 
C)  It yields income to the contracting firm only much later in the process. 
D)  It does not provide the option of buying shares in the managed company later on. 
E)  It requires a domestic firm to export its products to a foreign company. 
A)  It prevents a company from setting up its own operations for a period of time. 
B)  It is a high-risk method of getting into a foreign market. 
C)  It yields income to the contracting firm only much later in the process. 
D)  It does not provide the option of buying shares in the managed company later on. 
E)  It requires a domestic firm to export its products to a foreign company.

Question 7

Management contracting consists of one company joining forces with foreign investors to create a local business in which they share possession and control.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following is true of the Uruguay Round of the WTO?

Accepted Answer

A)  It promoted short-term global trade growth. 
B)  It increased the world's merchandise tariffs by 50 percent. 
C)  It reduced the influence of the WTO in agriculture. 
D)  It toughened the international protection of intellectual property. 
E)  It consisted of discussions that lasted for two years. 
A)  It promoted short-term global trade growth. 
B)  It increased the world's merchandise tariffs by 50 percent. 
C)  It reduced the influence of the WTO in agriculture. 
D)  It toughened the international protection of intellectual property. 
E)  It consisted of discussions that lasted for two years.

Question 9

Kimlee,a food manufacturer based in China,recognizes the immense demand for noodles in the Australian market.Kimlee forms a new business venture to manufacture instant noodles and decides to share possession and control of the new business with a local food processing company.In this case,Kimlee has entered a foreign market through ________.

Accepted Answer

A)  licensing 
B)  contract manufacturing 
C)  direct investment 
D)  joint ownership 
E)  management contracting 
A)  licensing 
B)  contract manufacturing 
C)  direct investment 
D)  joint ownership 
E)  management contracting

Question 10

What are the factors that a company should consider when deciding which markets to enter?

Accepted Answer

Before going abroad,a company should try

Question 11

To overcome the problem of price escalation when selling to less-affluent consumers in developing countries,many companies make simpler or smaller versions of their products that can be sold at lower prices.

Accepted Answer

A) True 
 B)False

Question 12

The simplest way to enter a foreign market is through ________.

Accepted Answer

A)  joint ownership 
B)  exporting 
C)  direct investment 
D)  licensing 
E)  contract manufacturing 
A)  joint ownership 
B)  exporting 
C)  direct investment 
D)  licensing 
E)  contract manufacturing

Question 13

Under management contracting,a domestic firm ________.

Accepted Answer

A)  adopts management know-how from a foreign company 
B)  manufactures the products of a foreign company 
C)  exports its products to a foreign company 
D)  provides financial capital to a foreign company 
E)  exports management services to a foreign company 
A)  adopts management know-how from a foreign company 
B)  manufactures the products of a foreign company 
C)  exports its products to a foreign company 
D)  provides financial capital to a foreign company 
E)  exports management services to a foreign company

Question 14

________ is a method of going global in which a company makes agreements with producers in the foreign market to produce its product or provide its service.

Accepted Answer

A)  Contract manufacturing 
B)  Direct investment 
C)  Acquisition 
D)  Exporting 
E)  Management contracting 
A)  Contract manufacturing 
B)  Direct investment 
C)  Acquisition 
D)  Exporting 
E)  Management contracting

Question 15

________ means marketing a product in a foreign market without making any changes to the product.

Accepted Answer

A)  Product adaptation 
B)  Straight product extension 
C)  Communication extension 
D)  Product invention 
E)  Communication adaptation 
A)  Product adaptation 
B)  Straight product extension 
C)  Communication extension 
D)  Product invention 
E)  Communication adaptation

Question 16

Which of the following is a disadvantage of licensing?

Accepted Answer

A)  The licensing company gains entry into a foreign market at a high risk. 
B)  It takes a lot of time for the licensee to gain production expertise and name. 
C)  Licensing is a complex way for a manufacturer to enter international marketing. 
D)  The licensor potentially creates a competitor in the form of the licensee. 
E)  The licensee is restricted from gaining knowledge about the licensor's intellectual property. 
A)  The licensing company gains entry into a foreign market at a high risk. 
B)  It takes a lot of time for the licensee to gain production expertise and name. 
C)  Licensing is a complex way for a manufacturer to enter international marketing. 
D)  The licensor potentially creates a competitor in the form of the licensee. 
E)  The licensee is restricted from gaining knowledge about the licensor's intellectual property.

Question 17

A country in South America has large reserves of copper and tin.Mining forms the pillar of its economy.A major part of its revenue is generated from exporting these resources.This country is poor in many other ways.It is a good market for large equipment,tools,supplies,and trucks.Since there are many foreign residents in this country and a wealthy upper class,it is also a market for luxury goods.This country most likely has a(n)________ economy.

Accepted Answer

A)  subsistence 
B)  raw material exporting 
C)  emerging 
D)  developed 
E)  industrial 
A)  subsistence 
B)  raw material exporting 
C)  emerging 
D)  developed 
E)  industrial

Question 18

Compared to standardized global marketing,adapted global marketing ________.

Accepted Answer

A)  uses the same marketing mix elements in all target markets 
B)  lowers marketing costs by using home country sales teams 
C)  modifies marketing strategies to meet local needs 
D)  maintains uniformity across all markets 
E)  results in greater brand power 
A)  uses the same marketing mix elements in all target markets 
B)  lowers marketing costs by using home country sales teams 
C)  modifies marketing strategies to meet local needs 
D)  maintains uniformity across all markets 
E)  results in greater brand power

Question 19

Which of the following is true of international divisions that are structured as geographical organizations?

Accepted Answer

A)  Geographical organizations are operating units under the export department. 
B)  Geographical organizations are usually formed to implement whole-channel supply chains. 
C)  Geographical organizations are managed by product managers, each responsible for different product groups. 
D)  Geographical organizations are inadequate if the firm moves into joint ventures or direct investments. 
E)  Geographical organizations are managed by country managers responsible for salespeople, distributors, and licensees in their respective countries. 
A)  Geographical organizations are operating units under the export department. 
B)  Geographical organizations are usually formed to implement whole-channel supply chains. 
C)  Geographical organizations are managed by product managers, each responsible for different product groups. 
D)  Geographical organizations are inadequate if the firm moves into joint ventures or direct investments. 
E)  Geographical organizations are managed by country managers responsible for salespeople, distributors, and licensees in their respective countries.

Question 20

Explain product invention with the help of suitable examples.

Accepted Answer

Product invention consists of creating s

Restrictive product standards are ________.

________ consists of creating something new to meet the needs of consumers in a given country.

Providing a host-country partner the right to use a company's manufacturing process,trademark,patent,trade secret,or other item of value is referred to as ________.

Which of the following is most likely a drawback of contract manufacturing?

________ ventures consist of one company collaborating with foreign investors to create a local business in which they share possession and control.

Which of the following is a drawback of management contracting?

Management contracting consists of one company joining forces with foreign investors to create a local business in which they share possession and control.

Which of the following is true of the Uruguay Round of the WTO?

What are the factors that a company should consider when deciding which markets to enter?

To overcome the problem of price escalation when selling to less-affluent consumers in developing countries,many companies make simpler or smaller versions of their products that can be sold at lower prices.

The simplest way to enter a foreign market is through ________.

Under management contracting,a domestic firm ________.

________ is a method of going global in which a company makes agreements with producers in the foreign market to produce its product or provide its service.

________ means marketing a product in a foreign market without making any changes to the product.

Which of the following is a disadvantage of licensing?

Compared to standardized global marketing,adapted global marketing ________.

Which of the following is true of international divisions that are structured as geographical organizations?

Explain product invention with the help of suitable examples.

Marketing: Creating and Capturing Customer Value

Company and Marketing Strategy: Partnering to Build Customer Relationships

Analyzing the Marketing Environment

Managing Marketing Information to Gain Customer Insights

Understanding Consumer and Business Buyer Behavior

Customer-Driven Marketing Strategy: Creating Value for Target Customers

Products,Services,and Brands: Building Customer Value

New Product Development and Product Life Cycle Strategies

Pricing: Understanding and Capturing Customer Value

Marketing Channels: Delivering Customer Value

Retailing and Wholesaling

Engaging Consumers and Communicating Customer Value: Advertising and Public Relations

Personal Selling and Sales Promotion

Direct, Online, Social Media, and Mobile Marketing

Social Responsibility and Ethics

Filters

Exam 15: The Global Marketplace

Restrictive product standards are ________.

________ consists of creating something new to meet the needs of consumers in a given country.

Providing a host-country partner the right to use a company's manufacturing process,trademark,patent,trade secret,or other item of value is referred to as ________.

Which of the following is most likely a drawback of contract manufacturing?

________ ventures consist of one company collaborating with foreign investors to create a local business in which they share possession and control.

Which of the following is a drawback of management contracting?

Management contracting consists of one company joining forces with foreign investors to create a local business in which they share possession and control.

Which of the following is true of the Uruguay Round of the WTO?

What are the factors that a company should consider when deciding which markets to enter?

To overcome the problem of price escalation when selling to less-affluent consumers in developing countries,many companies make simpler or smaller versions of their products that can be sold at lower prices.

The simplest way to enter a foreign market is through ________.

Under management contracting,a domestic firm ________.

________ is a method of going global in which a company makes agreements with producers in the foreign market to produce its product or provide its service.

________ means marketing a product in a foreign market without making any changes to the product.

Which of the following is a disadvantage of licensing?

Compared to standardized global marketing,adapted global marketing ________.

Which of the following is true of international divisions that are structured as geographical organizations?

Explain product invention with the help of suitable examples.

Marketing: Creating and Capturing Customer Value

Company and Marketing Strategy: Partnering to Build Customer Relationships

Analyzing the Marketing Environment

Managing Marketing Information to Gain Customer Insights

Understanding Consumer and Business Buyer Behavior

Customer-Driven Marketing Strategy: Creating Value for Target Customers

Products,Services,and Brands: Building Customer Value

New Product Development and Product Life Cycle Strategies

Pricing: Understanding and Capturing Customer Value

Marketing Channels: Delivering Customer Value

Retailing and Wholesaling

Engaging Consumers and Communicating Customer Value: Advertising and Public Relations

Personal Selling and Sales Promotion

Direct, Online, Social Media, and Mobile Marketing

Social Responsibility and Ethics

Filters