Question 1

Which of the following is an important indicator of a nation's increasing purchasing power?

Accepted Answer

A)  a growing proportion of middle-income households 
B)  declining per capita income 
C)  stable household incomes 
D)  stable incomes for the wealthiest consumers 
E)  a large gap developing or persisting between top incomes and lowest incomes 
A)  a growing proportion of middle-income households 
B)  declining per capita income 
C)  stable household incomes 
D)  stable incomes for the wealthiest consumers 
E)  a large gap developing or persisting between top incomes and lowest incomes

Question 2

Why has Amazon been aggressively pursuing the Indian market since 2013?

Accepted Answer

A)  U.S. sales had begun to decrease. 
B)  Amazon believed it would be inexpensive to begin operations in India. 
C)  There was no competition to speak of for Amazon's e-commerce channel in India. 
D)  There were fewer restrictions in retailing in India. 
E)  The India market offered significant growth potential. 
A)  U.S. sales had begun to decrease. 
B)  Amazon believed it would be inexpensive to begin operations in India. 
C)  There was no competition to speak of for Amazon's e-commerce channel in India. 
D)  There were fewer restrictions in retailing in India. 
E)  The India market offered significant growth potential.

Question 3

Countertrade refers to

Accepted Answer

A)  the illegal agreement of one country to buy products exclusively from another. 
B)  the legal agreement of one country to buy and sell certain products exclusively from one another. 
C)  the practice of using barter rather than money for making global sales. 
D)  the sale of industrial goods from a brick and mortar outlet rather than directly from the manufacturer. 
E)  the use of foreign currency in making global purchases to minimize risk from currency fluctuation. 
A)  the illegal agreement of one country to buy products exclusively from another. 
B)  the legal agreement of one country to buy and sell certain products exclusively from one another. 
C)  the practice of using barter rather than money for making global sales. 
D)  the sale of industrial goods from a brick and mortar outlet rather than directly from the manufacturer. 
E)  the use of foreign currency in making global purchases to minimize risk from currency fluctuation.

Question 4

Thirteen- to nineteen-year-olds in Europe, North and South America, and the industrialized nations of Asia

Accepted Answer

A)  are more similar than different regarding their purchase behaviors. 
B)  are becoming more similar, but still differ significantly in terms of fashion and design. 
C)  are rebelling against the Americanization of fashion and culture. 
D)  have very different tastes in fashions and music. 
E)  are more influenced by Asian culture than European culture. 
A)  are more similar than different regarding their purchase behaviors. 
B)  are becoming more similar, but still differ significantly in terms of fashion and design. 
C)  are rebelling against the Americanization of fashion and culture. 
D)  have very different tastes in fashions and music. 
E)  are more influenced by Asian culture than European culture.

Question 5

Define licensing, cite its advantages and disadvantages, and explain what franchising is.

Accepted Answer

Licensing offers the right to a company

Question 6

The World Trade Organization (WTO) refers to

Accepted Answer

A)  the world's largest banking institution responsible for establishing and maintaining equitable exchange rates for all member nations. 
B)  the world's largest licensing institution responsible for the certification of products distributed to a global market. 
C)  an institution that sets rules governing trade between its members through panels of trade experts who decide on trade disputes between members and issue binding decisions. 
D)  a multinational trade organization composed of the world's wealthiest nations whose primary purpose is to aid in the economic growth of developing nations. 
E)  a multinational trade organization comprised of the world's wealthiest nations whose primary purpose is to promote free trade economies. 
A)  the world's largest banking institution responsible for establishing and maintaining equitable exchange rates for all member nations. 
B)  the world's largest licensing institution responsible for the certification of products distributed to a global market. 
C)  an institution that sets rules governing trade between its members through panels of trade experts who decide on trade disputes between members and issue binding decisions. 
D)  a multinational trade organization composed of the world's wealthiest nations whose primary purpose is to aid in the economic growth of developing nations. 
E)  a multinational trade organization comprised of the world's wealthiest nations whose primary purpose is to promote free trade economies.

Question 7

The ________ arrangement between Ericsson, a Swedish telecommunications firm, and CGCT, a French switch maker, enabled them together to beat out AT&T for a $100 million French contract.

Accepted Answer

A)  franchising 
B)  protectionism 
C)  joint venture 
D)  direct investment 
E)  exporting 
A)  franchising 
B)  protectionism 
C)  joint venture 
D)  direct investment 
E)  exporting

Question 8

What global market entry strategy did Mary Kay use when it entered India?

Accepted Answer

A)  direct importing 
B)  licensing 
C)  indirect exporting 
D)  joint venture 
E)  direct exporting 
A)  direct importing 
B)  licensing 
C)  indirect exporting 
D)  joint venture 
E)  direct exporting

Question 9

Global companies have five strategies for matching products and their promotion efforts to global markets. Designing a product to serve the unmet needs of a foreign nation is which type of global marketing product and promotion strategy?

Accepted Answer

A)  product extension 
B)  product customization 
C)  product adaptation 
D)  product invention 
E)  product integration 
A)  product extension 
B)  product customization 
C)  product adaptation 
D)  product invention 
E)  product integration

Question 10

To eliminate the need to continually monitor currency exchange rates, ________ of the countries in the European Union (EU) have adopted a common currency called the euro.

Accepted Answer

A)  11 
B)  16 
C)  20 
D)  28 
E)  32 
A)  11 
B)  16 
C)  20 
D)  28 
E)  32

Question 11

The clandestine collection of trade secrets or proprietary information about a company's competitors is referred to as

Accepted Answer

A)  trade piracy. 
B)  transnational fraud. 
C)  economic espionage. 
D)  competitive duplicity. 
E)  transcorporation intelligence. 
A)  trade piracy. 
B)  transnational fraud. 
C)  economic espionage. 
D)  competitive duplicity. 
E)  transcorporation intelligence.

Question 12

The European Union is an economic and political union of ________ member countries that have eliminated most barriers to the free flow of products, services, capital, and labor across their borders.

Accepted Answer

A)  17 
B)  20 
C)  27 
D)  30 
E)  37 
A)  17 
B)  20 
C)  27 
D)  30 
E)  37

Question 13

A global marketer selling consumer products should consider what the ________ is among a country's consumers and how income is distributed to determine the nation's purchasing power.

Accepted Answer

A)  buying capacity 
B)  currency exchange risk 
C)  tariff 
D)  per capita income 
E)  cost of living 
A)  buying capacity 
B)  currency exchange risk 
C)  tariff 
D)  per capita income 
E)  cost of living

Question 14

Yum! Brands, the parent company of KFC, has pursued an aggressive growth strategy in China. There are now more than 3,700 restaurants in 650 Chinese cities, and KFC has a 40 percent market share of the entire fast-food industry there. Yum! Brands China owns and directly manages about 90 percent of its Chinese stores, so it appears that the company prefers ________ in this market.

Accepted Answer

A)  licensing 
B)  local assembly 
C)  a joint venture 
D)  direct investment 
E)  local manufacturing 
A)  licensing 
B)  local assembly 
C)  a joint venture 
D)  direct investment 
E)  local manufacturing

Question 15

Which of the following statements about the dynamics of world trade is most accurate?

Accepted Answer

A)  Manufactured products and commodities account for only 25 percent of world trade. 
B)  Services such as telecommunications, transportation, and banking accounts are not included in calculations of world trade. 
C)  The United States has replaced China as the biggest country in terms of world trade. 
D)  Europe is the largest region involved in world trade. 
E)  The dollar value of world trade has roughly doubled in the past decade. 
A)  Manufactured products and commodities account for only 25 percent of world trade. 
B)  Services such as telecommunications, transportation, and banking accounts are not included in calculations of world trade. 
C)  The United States has replaced China as the biggest country in terms of world trade. 
D)  Europe is the largest region involved in world trade. 
E)  The dollar value of world trade has roughly doubled in the past decade.

Question 16

A global market entry strategy that entails a domestic firm actually investing in and owning a foreign subsidiary or division is referred to as

Accepted Answer

A)  licensing. 
B)  local assembly. 
C)  a joint venture. 
D)  direct investment. 
E)  local manufacturing. 
A)  licensing. 
B)  local assembly. 
C)  a joint venture. 
D)  direct investment. 
E)  local manufacturing.

Question 17

The European Union (EU) consists of 27 countries with more than 510 million consumers. The EU has eliminated most barriers to the free flow of products, capital, and labor across its borders. Which of the following countries is not a member of the EU?

Accepted Answer

A)  Poland 
B)  Greece 
C)  Ireland 
D)  Switzerland 
E)  Finland 
A)  Poland 
B)  Greece 
C)  Ireland 
D)  Switzerland 
E)  Finland

Question 18

Describe the elements in a global channel of distribution.

Accepted Answer

Figure 6-6 outlines the channel through

Question 19

Gross domestic product refers to

Accepted Answer

A)  the monetary value of all products and services produced by a single manufacturer during one year. 
B)  the monetary value of all domestic exports of a nation during one year. 
C)  the monetary value of all products and services produced in a country during one year. 
D)  the monetary value of all domestic imports of a nation during one year. 
E)  the difference between all domestic exports and imports for any nation during the course of one fiscal year. 
A)  the monetary value of all products and services produced by a single manufacturer during one year. 
B)  the monetary value of all domestic exports of a nation during one year. 
C)  the monetary value of all products and services produced in a country during one year. 
D)  the monetary value of all domestic imports of a nation during one year. 
E)  the difference between all domestic exports and imports for any nation during the course of one fiscal year.

Question 20

Sony electronics, Gillette razors, and Nike apparel and shoes are being sold in the same form in many countries. This is an example of which type of global marketing product and promotion strategy?

Accepted Answer

A)  product customization 
B)  product adaptation 
C)  product extension 
D)  product integration 
E)  product invention 
A)  product customization 
B)  product adaptation 
C)  product extension 
D)  product integration 
E)  product invention

Which of the following is an important indicator of a nation's increasing purchasing power?

Why has Amazon been aggressively pursuing the Indian market since 2013?

Countertrade refers to

Thirteen- to nineteen-year-olds in Europe, North and South America, and the industrialized nations of Asia

Define licensing, cite its advantages and disadvantages, and explain what franchising is.

The World Trade Organization (WTO) refers to

The ________ arrangement between Ericsson, a Swedish telecommunications firm, and CGCT, a French switch maker, enabled them together to beat out AT&T for a $100 million French contract.

What global market entry strategy did Mary Kay use when it entered India?

Global companies have five strategies for matching products and their promotion efforts to global markets. Designing a product to serve the unmet needs of a foreign nation is which type of global marketing product and promotion strategy?

To eliminate the need to continually monitor currency exchange rates, ________ of the countries in the European Union (EU) have adopted a common currency called the euro.

The clandestine collection of trade secrets or proprietary information about a company's competitors is referred to as

The European Union is an economic and political union of ________ member countries that have eliminated most barriers to the free flow of products, services, capital, and labor across their borders.

A global marketer selling consumer products should consider what the ________ is among a country's consumers and how income is distributed to determine the nation's purchasing power.

Which of the following statements about the dynamics of world trade is most accurate?

A global market entry strategy that entails a domestic firm actually investing in and owning a foreign subsidiary or division is referred to as

The European Union (EU) consists of 27 countries with more than 510 million consumers. The EU has eliminated most barriers to the free flow of products, capital, and labor across its borders. Which of the following countries is not a member of the EU?

Describe the elements in a global channel of distribution.

Gross domestic product refers to

Sony electronics, Gillette razors, and Nike apparel and shoes are being sold in the same form in many countries. This is an example of which type of global marketing product and promotion strategy?

Creating Customer Relationships and Value Through Marketing

Developing Successful Organizational and Marketing Strategies

Understanding the Marketing Environment, Ethical Behavior, and Social Responsibility

Understanding Consumer Behavior

Understanding Organizations As Customers

Marketing Research: From Customer Insights to Actions

Market Segmentation, Targeting, and Positioning

Developing New Products and Services

Managing Successful Products, Services, and Brands

Pricing Products and Services

Managing Marketing Channels and Supply Chains

Retailing and Wholesaling

Implementing Interactive and Multichannel Marketing

Integrated Marketing Communications and Direct Marketing

Advertising, Sales Promotion, and Public Relations

Using Social Media and Mobile Marketing to Connect With Consumers

Personal Selling and Sales Management

Filters

Exam 6: Understanding and Reaching Global Consumers and Markets

Which of the following is an important indicator of a nation's increasing purchasing power?

Why has Amazon been aggressively pursuing the Indian market since 2013?

Countertrade refers to

Thirteen- to nineteen-year-olds in Europe, North and South America, and the industrialized nations of Asia

Define licensing, cite its advantages and disadvantages, and explain what franchising is.

The World Trade Organization (WTO) refers to

The ________ arrangement between Ericsson, a Swedish telecommunications firm, and CGCT, a French switch maker, enabled them together to beat out AT&T for a $100 million French contract.

What global market entry strategy did Mary Kay use when it entered India?

Global companies have five strategies for matching products and their promotion efforts to global markets. Designing a product to serve the unmet needs of a foreign nation is which type of global marketing product and promotion strategy?

To eliminate the need to continually monitor currency exchange rates, ________ of the countries in the European Union (EU) have adopted a common currency called the euro.

The clandestine collection of trade secrets or proprietary information about a company's competitors is referred to as

The European Union is an economic and political union of ________ member countries that have eliminated most barriers to the free flow of products, services, capital, and labor across their borders.

A global marketer selling consumer products should consider what the ________ is among a country's consumers and how income is distributed to determine the nation's purchasing power.

Which of the following statements about the dynamics of world trade is most accurate?

A global market entry strategy that entails a domestic firm actually investing in and owning a foreign subsidiary or division is referred to as

The European Union (EU) consists of 27 countries with more than 510 million consumers. The EU has eliminated most barriers to the free flow of products, capital, and labor across its borders. Which of the following countries is not a member of the EU?

Describe the elements in a global channel of distribution.

Gross domestic product refers to

Sony electronics, Gillette razors, and Nike apparel and shoes are being sold in the same form in many countries. This is an example of which type of global marketing product and promotion strategy?

Creating Customer Relationships and Value Through Marketing

Developing Successful Organizational and Marketing Strategies

Understanding the Marketing Environment, Ethical Behavior, and Social Responsibility

Understanding Consumer Behavior

Understanding Organizations As Customers

Marketing Research: From Customer Insights to Actions

Market Segmentation, Targeting, and Positioning

Developing New Products and Services

Managing Successful Products, Services, and Brands

Pricing Products and Services

Managing Marketing Channels and Supply Chains

Retailing and Wholesaling

Implementing Interactive and Multichannel Marketing

Integrated Marketing Communications and Direct Marketing

Advertising, Sales Promotion, and Public Relations

Using Social Media and Mobile Marketing to Connect With Consumers

Personal Selling and Sales Management

Filters