Question 1

The form of global organization that provides the highest potential for return on investment as well as the highest level of risk is contract manufacturing.

Accepted Answer

A) True 
 B)False

Question 2

Apple,Inc.has partnerships with wireless carriers in Japan,Spain,and a handful of other European countries.Apple works with suppliers and retailers worldwide.This means that Apple is a:

Accepted Answer

A) multinational corporation 
B) worldwide competitor 
C) marketplace competitor 
D) domestic corporation 
E) foreign investor 
A) multinational corporation 
B) worldwide competitor 
C) marketplace competitor 
D) domestic corporation 
E) foreign investor

Question 3

All of the following statements about the use of the Internet in global marketing are true EXCEPT:

Accepted Answer

A) Opening an e-commerce site on the Internet immediately puts a company in the international marketplace. 
B) The new Internet economy is being restrained by the old brick-and-mortar rules,regulations,and habits. 
C) Software has been developed to ease currency conversions by allowing customers to pay for products in the currency of their choice. 
D) FedEx is a global shipper that helps solve international e-commerce distribution. 
E) Language barriers are limiting the potential of the Internet in international marketing. 
A) Opening an e-commerce site on the Internet immediately puts a company in the international marketplace. 
B) The new Internet economy is being restrained by the old brick-and-mortar rules,regulations,and habits. 
C) Software has been developed to ease currency conversions by allowing customers to pay for products in the currency of their choice. 
D) FedEx is a global shipper that helps solve international e-commerce distribution. 
E) Language barriers are limiting the potential of the Internet in international marketing.

Question 4

The Group of Twenty is the largest free trade agreement in the world.

Accepted Answer

A) True 
 B)False

Question 5

Global marketing standardization:

Accepted Answer

A) is becoming less popular with the large multinationals. 
B) encourages product,packaging,and advertising variations for each nation or local market. 
C) actually raises production costs. 
D) presumes markets throughout the world are becoming more alike. 
E) is more popular with consumer products than with industrial goods. 
A) is becoming less popular with the large multinationals. 
B) encourages product,packaging,and advertising variations for each nation or local market. 
C) actually raises production costs. 
D) presumes markets throughout the world are becoming more alike. 
E) is more popular with consumer products than with industrial goods.

Question 6

Disney sells the rights for an investment company to run a Disneyland theme park in Tokyo.The investment company gains most of the profits from the enterprise while paying Disney a percentage in royalties.This is an example of:

Accepted Answer

A) a joint venture 
B) exporting 
C) direct investment 
D) licensing 
E) capital-intensive manufacturing 
A) a joint venture 
B) exporting 
C) direct investment 
D) licensing 
E) capital-intensive manufacturing

Question 7

Global marketing research is not any more difficult than domestic marketing research.

Accepted Answer

A) True 
 B)False

Question 8

If a country's currency appreciates,more of that currency will be needed to buy another country's currency.

Accepted Answer

A) True 
 B)False

Question 9

Many people fear world trade because it:

Accepted Answer

A) will inevitably lead to inflation. 
B) will cause living standards to increase at a slower rate. 
C) causes some people to lose their jobs as production shifts abroad. 
D) has brought entire nations out of poverty. 
E) has increased per capita income for some countries. 
A) will inevitably lead to inflation. 
B) will cause living standards to increase at a slower rate. 
C) causes some people to lose their jobs as production shifts abroad. 
D) has brought entire nations out of poverty. 
E) has increased per capita income for some countries.

Question 10

The Patton Awning Company produces tents,tarps,awnings,and other canvas products.The firm is in the first stage of creating its global business.This means that Patton Awning Company:

Accepted Answer

A) operates in one country and sells to others. 
B) has set up a foreign subsidiary. 
C) operates an entire line of business in another country. 
D) has top executives and core corporate functions in different countries. 
E) operates in every country in the world. 
A) operates in one country and sells to others. 
B) has set up a foreign subsidiary. 
C) operates an entire line of business in another country. 
D) has top executives and core corporate functions in different countries. 
E) operates in every country in the world.

Question 11

A multinational company that makes a labor-intensive product would be interested in the _____ makeup of countries.Factors such as median age,gender,and literacy rates would determine the success of its global expansion.

Accepted Answer

A) demographic 
B) lifestyle 
C) natural 
D) cultural 
E) economic 
A) demographic 
B) lifestyle 
C) natural 
D) cultural 
E) economic

Question 12

U.S.-based Procter & Gamble and Italian-based Fater agreed to produce and market diapers for the European market.This is an example of a joint franchise.

Accepted Answer

A) True 
 B)False

Question 13

The role of a domestic company that sells to an export merchant (also called a buyer for export)is to:

Accepted Answer

A) guide the marketing actions of the merchant as the goods are sold in foreign countries. 
B) pay all transportation,warehousing,and marketing expenses. 
C) sell the product to that merchant who resells the product in the foreign country without the aid or input of the original manufacturer. 
D) broker a partnership agreement such as a joint venture. 
E) dictate conditions of sale in foreign countries. 
A) guide the marketing actions of the merchant as the goods are sold in foreign countries. 
B) pay all transportation,warehousing,and marketing expenses. 
C) sell the product to that merchant who resells the product in the foreign country without the aid or input of the original manufacturer. 
D) broker a partnership agreement such as a joint venture. 
E) dictate conditions of sale in foreign countries.

Question 14

Patch Products is an Australian company that has given permission to several Latin American companies to manufacture and market its patented Spanish/English children's frame tray puzzles.Because Patch uses licensing as its global marketing strategy,it:

Accepted Answer

A) must only pay a minimal royalty to the licensed companies. 
B) cannot control how the puzzles are manufactured. 
C) has involved itself in the global marketing strategy that gives it the greatest amount of control. 
D) cannot have any control over how the puzzles are promoted or distributed. 
E) chose a method of global marketing that created minimal risk. 
A) must only pay a minimal royalty to the licensed companies. 
B) cannot control how the puzzles are manufactured. 
C) has involved itself in the global marketing strategy that gives it the greatest amount of control. 
D) cannot have any control over how the puzzles are promoted or distributed. 
E) chose a method of global marketing that created minimal risk.

Question 15

Currency markets operate under a system in which the prices of different currencies move up or down based on the demand for and supply of each currency.This practice is called:

Accepted Answer

A) Countertrading. 
B) floating exchange rates. 
C) variable purchasing power. 
D) flexible monetary policies. 
E) purchasing power elasticity. 
A) Countertrading. 
B) floating exchange rates. 
C) variable purchasing power. 
D) flexible monetary policies. 
E) purchasing power elasticity.

Question 16

What went wrong with the Tails-for-Tails campaign shows the power of __________ in undoing the good will that a company wants associated with its brands.

Accepted Answer

A) Facebook 
B) social media 
C) Twitter 
D) a plant-based diet 
E) all of the above 
A) Facebook 
B) social media 
C) Twitter 
D) a plant-based diet 
E) all of the above

Question 17

H.J.Heinz,the ketchup company,gets over half of its revenue from international sales.This shows that:

Accepted Answer

A) U.S.citizens are using less ketchup. 
B) their market share should increase. 
C) Heinz needs to abandon the U.S.market. 
D) sales need to be increased domestically. 
E) adopting a global vision can pay off. 
A) U.S.citizens are using less ketchup. 
B) their market share should increase. 
C) Heinz needs to abandon the U.S.market. 
D) sales need to be increased domestically. 
E) adopting a global vision can pay off.

Question 18

A U.S.executive had no idea that Germans tend to be very risk-averse.When the executive arrived at a meeting in Berlin,he simply stressed the price of his firm's products without emphasizing their bottom-line benefits,promoting the company's strong service support,or guaranteeing their effectiveness.As a result,the multimillion dollar deal failed.The U.S.executive overlooked the importance of which environmental factor?

Accepted Answer

A) Culture 
B) Demographics 
C) Natural resources 
D) Economic development 
E) Political structure 
A) Culture 
B) Demographics 
C) Natural resources 
D) Economic development 
E) Political structure

Question 19

Which method of entering the global marketplace would be most risky?

Accepted Answer

A) Licensing 
B) Direct investment 
C) Contract manufacturing 
D) Joint ventures 
E) Exporting 
A) Licensing 
B) Direct investment 
C) Contract manufacturing 
D) Joint ventures 
E) Exporting

Question 20

What is a multinational corporation? Discuss two multinational corporations with which you are familiar.

Accepted Answer

A company that is heavily engaged in int

Exam 5: Developing a Global Vision

The form of global organization that provides the highest potential for return on investment as well as the highest level of risk is contract manufacturing.

Apple,Inc.has partnerships with wireless carriers in Japan,Spain,and a handful of other European countries.Apple works with suppliers and retailers worldwide.This means that Apple is a:

All of the following statements about the use of the Internet in global marketing are true EXCEPT:

The Group of Twenty is the largest free trade agreement in the world.

Global marketing standardization:

Disney sells the rights for an investment company to run a Disneyland theme park in Tokyo.The investment company gains most of the profits from the enterprise while paying Disney a percentage in royalties.This is an example of:

Global marketing research is not any more difficult than domestic marketing research.

If a country's currency appreciates,more of that currency will be needed to buy another country's currency.

Many people fear world trade because it:

The Patton Awning Company produces tents,tarps,awnings,and other canvas products.The firm is in the first stage of creating its global business.This means that Patton Awning Company:

A multinational company that makes a labor-intensive product would be interested in the _____ makeup of countries.Factors such as median age,gender,and literacy rates would determine the success of its global expansion.

U.S.-based Procter & Gamble and Italian-based Fater agreed to produce and market diapers for the European market.This is an example of a joint franchise.

The role of a domestic company that sells to an export merchant (also called a buyer for export)is to:

Patch Products is an Australian company that has given permission to several Latin American companies to manufacture and market its patented Spanish/English children's frame tray puzzles.Because Patch uses licensing as its global marketing strategy,it:

Currency markets operate under a system in which the prices of different currencies move up or down based on the demand for and supply of each currency.This practice is called:

What went wrong with the Tails-for-Tails campaign shows the power of __________ in undoing the good will that a company wants associated with its brands.

H.J.Heinz,the ketchup company,gets over half of its revenue from international sales.This shows that:

Which method of entering the global marketplace would be most risky?

What is a multinational corporation? Discuss two multinational corporations with which you are familiar.

An Overview of Marketing

Strategic Planning for Competitive Advantage

Ethics and Social Responsibility

The Marketing Environment

Consumer Decision Making

Business Marketing

Segmenting and Targeting Markets

Decision Support Systems and Marketing Research

Product Concepts

Developing and Managing Products

Services and Nonprofit Organization Marketing

Marketing Channels

Supply Chain Management

Retailing

Integrated Marketing Communications

Advertising and Public Relations

Sales Promotion and Personal Selling

Pricing Concepts

Setting the Right Price

Customer Relationship Management Crm

Social Media and Marketing

Filters