Question 1

Which of the following is an advantage of licensing?

Accepted Answer

A) Licensing is the most economical method of going global. 
B) The firm has equal control over the licensee as it would over its own operations. 
C) The licensee gains a name without having to start from scratch. 
D) If the licensee is successful, the firm earns more profits than it would do on its own. 
E) The firm does not have the risk of creating a future competitor in the form of the licensee once the contract ends. 
A) Licensing is the most economical method of going global. 
B) The firm has equal control over the licensee as it would over its own operations. 
C) The licensee gains a name without having to start from scratch. 
D) If the licensee is successful, the firm earns more profits than it would do on its own. 
E) The firm does not have the risk of creating a future competitor in the form of the licensee once the contract ends. C

Question 2

Which of the following is true of free trade zones?

Accepted Answer

A) Free trade zones are groups of nations organized to work toward common goals in the regulation of international trade. 
B) Free trade zones were replaced by the World Trade Organization. 
C) Free trade zones mediate global trade disputes. 
D) Free trade zones are established only among the United States, Mexico, and Canada. 
E) Free trade zones are countries that barter their output for simple goods and services. 
A) Free trade zones are groups of nations organized to work toward common goals in the regulation of international trade. 
B) Free trade zones were replaced by the World Trade Organization. 
C) Free trade zones mediate global trade disputes. 
D) Free trade zones are established only among the United States, Mexico, and Canada. 
E) Free trade zones are countries that barter their output for simple goods and services. A

Question 3

Strawberry Fizz is a renowned bottled juice manufacturer in the U.S.It exports its products to Mexico,has a joint venture in Hong Kong,and owns a subsidiary in South Africa.The company has organized an export department to manage its international marketing activities.Do you think it has made the right decision? If yes,why? If no,which marketing organization do you suggest?

Accepted Answer

Organizing an export department is not the correct decision.An export department is established when the firm has expanded its international sales by shipping out its products.If the firm moves into joint ventures or direct investment,the export department will no longer be adequate.Strawberry Fizz should create international divisions or subsidiaries to handle all its international activities.International divisions are organized in a variety of ways.An international division's corporate staff consists of marketing,manufacturing,research,finance,planning,and personnel specialists.It plans for and provides services to various operating units,which can be organized in one of three ways.They can be geographical organizations,with country managers who are responsible for salespeople,sales branches,distributors,and licensees in their respective countries.Or the operating units can be world product groups,each responsible for worldwide sales of different product groups.Finally,operating units can be international subsidiaries,each responsible for their own sales and profits.

Question 4

Explain joint ownership with an example.What are its advantages and disadvantages?

Accepted Answer

Joint ownership is a type of joint ventu

Question 5

Give an account of the functions of the World Trade Organization (WTO)and the formation of WTO from GATT.

Accepted Answer

The General Agreement on Tariffs and Tra

Question 6

Which of the following is a benefit of contract manufacturing?

Accepted Answer

A) The home company keeps full control over the manufacturing process. 
B) Contract manufacturing helps the company make greater profits on manufacturing. 
C) Contract manufacturing gives the company a chance to start faster, with less risk. 
D) There is development of foreign-based manufacturing facilities. 
E) Contract manufacturing does not require an overseas marketing organization or network. 
A) The home company keeps full control over the manufacturing process. 
B) Contract manufacturing helps the company make greater profits on manufacturing. 
C) Contract manufacturing gives the company a chance to start faster, with less risk. 
D) There is development of foreign-based manufacturing facilities. 
E) Contract manufacturing does not require an overseas marketing organization or network.

Question 7

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 and 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 has a(n)________ economy.

Accepted Answer

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

Question 8

The first step in straight product extension is to market a product as is and find customers for it.

Accepted Answer

A) True 
 B)False

Question 9

Differentiate between industrializing economies and industrial economies.Give a few examples of each.

Accepted Answer

A country's industrial structure shapes

Question 10

Collectively,global brands account for the overwhelming majority of consumers' purchases.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following is a drawback of contract manufacturing?

Accepted Answer

A) The chances of quickly starting the process are very low. 
B) There is decreased control over the manufacturing process. 
C) The risks involved are relatively high. 
D) There is little opportunity of forming a partnership. 
E) The scope of buying out the local manufacturer is limited. 
A) The chances of quickly starting the process are very low. 
B) There is decreased control over the manufacturing process. 
C) The risks involved are relatively high. 
D) There is little opportunity of forming a partnership. 
E) The scope of buying out the local manufacturer is limited.

Question 12

________ is a method of entering a foreign market by associating with foreign companies to produce or market products or services.

Accepted Answer

A) Joint venturing 
B) Indirect exporting 
C) Direct investment 
D) Greenfield investment 
E) Direct exporting 
A) Joint venturing 
B) Indirect exporting 
C) Direct investment 
D) Greenfield investment 
E) Direct exporting

Question 13

Which of the following is a drawback of management contracting?

Accepted Answer

A) Management contracting prevents the company from setting up its own operations for a period of time. 
B) Management contracting is a high-risk method of getting into a foreign market. 
C) Management contracting yields income much later on in the process. 
D) Management contracting does not provide the option of buying shares in the managed company. 
E) The domestic firm lacks the management know-how. 
A) Management contracting prevents the company from setting up its own operations for a period of time. 
B) Management contracting is a high-risk method of getting into a foreign market. 
C) Management contracting yields income much later on in the process. 
D) Management contracting does not provide the option of buying shares in the managed company. 
E) The domestic firm lacks the management know-how.

Question 14

The four types of joint ventures are licensing,contract manufacturing,management contracting,and joint ownership.

Accepted Answer

A) True 
 B)False

Question 15

In an emerging economy,the vast majority of people engage in simple agriculture.

Accepted Answer

A) True 
 B)False

Question 16

Briefly explain the three basic market entry strategies of entering a foreign market.

Accepted Answer

Once a company has decided to sell in a

Question 17

An emerging economy is one in which ________.

Accepted Answer

A) the country imports large amounts of finished textiles and automobiles 
B) the vast majority of people engage in simple agriculture 
C) the country is rich in one or more resources but poor in other ways 
D) there are very few imports of raw textile materials and steel 
E) fast growth in manufacturing results in rapid overall economic growth 
A) the country imports large amounts of finished textiles and automobiles 
B) the vast majority of people engage in simple agriculture 
C) the country is rich in one or more resources but poor in other ways 
D) there are very few imports of raw textile materials and steel 
E) fast growth in manufacturing results in rapid overall economic growth

Question 18

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

Accepted Answer

A) The Uruguay Round promoted short-term global trade growth. 
B) The Uruguay Round further reduced the world's remaining merchandise tariffs by 50 percent. 
C) The Uruguay Round did not protect intellectual property. 
D) The Uruguay Round toughened the international protection of copyrights and patents. 
E) The Uruguay Round began in late 2001 and concluded in 2005. 
A) The Uruguay Round promoted short-term global trade growth. 
B) The Uruguay Round further reduced the world's remaining merchandise tariffs by 50 percent. 
C) The Uruguay Round did not protect intellectual property. 
D) The Uruguay Round toughened the international protection of copyrights and patents. 
E) The Uruguay Round began in late 2001 and concluded in 2005.

Question 19

In managing their international marketing activities,most companies first organize a(n)________.

Accepted Answer

A) international subsidiary 
B) international division 
C) geographical organization 
D) world product group 
E) export department 
A) international subsidiary 
B) international division 
C) geographical organization 
D) world product group 
E) export department

Question 20

Global organizations think of themselves as national marketers who sell abroad.

Accepted Answer

A) True 
 B)False

Which of the following is an advantage of licensing?

Which of the following is true of free trade zones?

Explain joint ownership with an example.What are its advantages and disadvantages?

Give an account of the functions of the World Trade Organization (WTO)and the formation of WTO from GATT.

Which of the following is a benefit of contract manufacturing?

The first step in straight product extension is to market a product as is and find customers for it.

Differentiate between industrializing economies and industrial economies.Give a few examples of each.

Collectively,global brands account for the overwhelming majority of consumers' purchases.

Which of the following is a drawback of contract manufacturing?

________ is a method of entering a foreign market by associating with foreign companies to produce or market products or services.

Which of the following is a drawback of management contracting?

The four types of joint ventures are licensing,contract manufacturing,management contracting,and joint ownership.

In an emerging economy,the vast majority of people engage in simple agriculture.

Briefly explain the three basic market entry strategies of entering a foreign market.

An emerging economy is one in which ________.

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

In managing their international marketing activities,most companies first organize a(n)________.

Global organizations think of themselves as national marketers who sell abroad.

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

Product,Services,and Brands: Building Customer Value

Developing New Products and Managing the Product Life Cycle

Pricing: Understanding and Capturing Customer Value

Marketing Channels Delivering Customer Value

Retailing and Wholesaling

Communicating Customer Value

Personal Selling and Sales Promotion

Direct and Online Marketing: Building Direct Customer Relationships

Sustainable Marketing: Social Responsibility and Ethics

Filters

Exam 15: The Global Marketplace

Which of the following is an advantage of licensing?

Which of the following is true of free trade zones?

Explain joint ownership with an example.What are its advantages and disadvantages?

Give an account of the functions of the World Trade Organization (WTO)and the formation of WTO from GATT.

Which of the following is a benefit of contract manufacturing?

The first step in straight product extension is to market a product as is and find customers for it.

Differentiate between industrializing economies and industrial economies.Give a few examples of each.

Collectively,global brands account for the overwhelming majority of consumers' purchases.

Which of the following is a drawback of contract manufacturing?

________ is a method of entering a foreign market by associating with foreign companies to produce or market products or services.

Which of the following is a drawback of management contracting?

The four types of joint ventures are licensing,contract manufacturing,management contracting,and joint ownership.

In an emerging economy,the vast majority of people engage in simple agriculture.

Briefly explain the three basic market entry strategies of entering a foreign market.

An emerging economy is one in which ________.

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

In managing their international marketing activities,most companies first organize a(n)________.

Global organizations think of themselves as national marketers who sell abroad.

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

Product,Services,and Brands: Building Customer Value

Developing New Products and Managing the Product Life Cycle

Pricing: Understanding and Capturing Customer Value

Marketing Channels Delivering Customer Value

Retailing and Wholesaling

Communicating Customer Value

Personal Selling and Sales Promotion

Direct and Online Marketing: Building Direct Customer Relationships

Sustainable Marketing: Social Responsibility and Ethics

Filters