Question 1

Indirect exporting refers to

Accepted Answer

A) offering the right to a trademark,patent,trade secret,or similarly valued item of intellectual property in return for a royalty or fee. 
B) selling a firm's domestically produced products in a foreign country without interference by that government. 
C) contracting with a foreign firm to manufacture products according to stated specifications. 
D) avoiding the use of additional parties when a firm sells its domestically produced products in another country. 
E) selling a firm's domestically produced products in a foreign country through an intermediary. 
A) offering the right to a trademark,patent,trade secret,or similarly valued item of intellectual property in return for a royalty or fee. 
B) selling a firm's domestically produced products in a foreign country without interference by that government. 
C) contracting with a foreign firm to manufacture products according to stated specifications. 
D) avoiding the use of additional parties when a firm sells its domestically produced products in another country. 
E) selling a firm's domestically produced products in a foreign country through an intermediary.

Question 2

When Nestlé actually owns a subsidiary or division in a foreign country,such as its own ice cream manufacturing operation in China,this global market entry strategy is known as ________ and represents the greatest commitment a company can make to international sales.

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 3

Yum! Brands,the restaurant division of PepsiCo,has 12,600 KFC restaurants abroad,with more than 3,700 restaurants in China.Many of the latter are locally owned and subject to a contractual agreement that allows the owners to operate the business under the established KFC brand name and according to specific rules.Yum! Brands is engaged in

Accepted Answer

A) contract assembly. 
B) a joint venture. 
C) contract manufacturing. 
D) a partnership. 
E) franchising. 
A) contract assembly. 
B) a joint venture. 
C) contract manufacturing. 
D) a partnership. 
E) franchising.

Question 4

Customs are

Accepted Answer

A) what is considered normal and expected about the way people do things in a specific country. 
B) those actions or activities within a community that are unique or distinctly different from any other group. 
C) actions or behaviors that are repeated over time and carry a specific meaning to a unique group,nationality,or ethnicity. 
D) traditions among a group of people,a nation,or ethnicity that affect their purchase behaviors. 
E) what would be considered unusual or unexpected,and even unacceptable,about the way people do things in a specific country. 
A) what is considered normal and expected about the way people do things in a specific country. 
B) those actions or activities within a community that are unique or distinctly different from any other group. 
C) actions or behaviors that are repeated over time and carry a specific meaning to a unique group,nationality,or ethnicity. 
D) traditions among a group of people,a nation,or ethnicity that affect their purchase behaviors. 
E) what would be considered unusual or unexpected,and even unacceptable,about the way people do things in a specific country.

Question 5

All of the following should be understood and appreciated about another society for a thorough cross-cultural analysis except which?

Accepted Answer

A) economics 
B) symbols 
C) values 
D) languages 
E) customs 
A) economics 
B) symbols 
C) values 
D) languages 
E) customs

Question 6

Mars,America's second-largest candy company,began doing business in Russia in the late 1980s.The Snickers bar is one of the top-selling candies in Russia and is marketed in much the same way as it is in the United States.What type of global company is Mars?

Accepted Answer

A) international firm 
B) multidomestic firm 
C) transnational firm 
D) meganational firm 
E) multinational firm 
A) international firm 
B) multidomestic firm 
C) transnational firm 
D) meganational firm 
E) multinational firm

Question 7

Figure 7-2
  
-The question mark in Figure 7-2 above leads to which of the following as a result of the imposition of tariffs and quotas?

Accepted Answer

A) an increase in world trade 
B) a decrease in world trade 
C) a limit on exports 
D) an increase in exports 
E) countertrade 
A) an increase in world trade 
B) a decrease in world trade 
C) a limit on exports 
D) an increase in exports 
E) countertrade

Question 8

The U.S.motorcycle manufacturer Harley-Davidson uses intermediaries to sell its motorcycles in numerous nations outside the United States.Harley-Davidson uses

Accepted Answer

A) direct exporting. 
B) licensing. 
C) contract manufacturing. 
D) indirect exporting. 
E) foreign assembly. 
A) direct exporting. 
B) licensing. 
C) contract manufacturing. 
D) indirect exporting. 
E) foreign assembly.

Question 9

What is considered normal and expected about the way people do things in a specific country is referred to as

Accepted Answer

A) morals. 
B) ethics. 
C) values. 
D) customs. 
E) beliefs. 
A) morals. 
B) ethics. 
C) values. 
D) customs. 
E) beliefs.

Question 10

KFC in Japan sells tempura crispy strips.In northern England,it stresses gravy and potatoes.In Thailand,it offers fresh rice.In Holland,instead of potatoes,KFC offers customers a potato and onion croquette.In France,KFC sells pastries alongside its chicken.These examples illustrate that KFC exhibits an appreciation for the ________ of other societies.

Accepted Answer

A) demographics 
B) symbols 
C) sensitivities 
D) customs 
E) values 
A) demographics 
B) symbols 
C) sensitivities 
D) customs 
E) values

Question 11

Which market entry option allows a company to make the least number of changes in terms of its product,its organization,and even its corporate goals?

Accepted Answer

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

Question 12

A country's income distribution is important because it gives a more reliable picture of a country's ________ than just per capita income alone.

Accepted Answer

A) consumer tastes 
B) taxable income 
C) purchasing power 
D) discretionary income 
E) cost of living 
A) consumer tastes 
B) taxable income 
C) purchasing power 
D) discretionary income 
E) cost of living

Question 13

All of the following are disadvantages of licensing except which?

Accepted Answer

A) The licensor has reduced potential profits compared to direct investment. 
B) The foreign country does not benefit from increases in local employment for product manufacturing. 
C) The licensor forgoes control of its product. 
D) Should the licensee prove to be a poor choice,the name or reputation of the company may be harmed. 
E) The licensor may be creating its own competition. 
A) The licensor has reduced potential profits compared to direct investment. 
B) The foreign country does not benefit from increases in local employment for product manufacturing. 
C) The licensor forgoes control of its product. 
D) Should the licensee prove to be a poor choice,the name or reputation of the company may be harmed. 
E) The licensor may be creating its own competition.

Question 14

Figure 7-4
  
-Once a company has decided to enter the global marketplace,it must select a means of market entry.One of the four general options is

Accepted Answer

A) licensing 
B) accreditation 
C) countertrading 
D) cooperative 
E) internationalization 
A) licensing 
B) accreditation 
C) countertrading 
D) cooperative 
E) internationalization

Question 15

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

Accepted Answer

Licensing offers the right to a company

Question 16

The Parthenon evokes strong feelings from consumers in Greece and is referred to as the "holy rock." Coca-Cola marketers did not expect that this ________,when used in a marketing campaign that replaced the columns with Coke bottles,would arouse such an angry response in that country.

Accepted Answer

A) cultural symbol 
B) anthropomorphic code 
C) back translation 
D) semantic representation 
E) civil analysis 
A) cultural symbol 
B) anthropomorphic code 
C) back translation 
D) semantic representation 
E) civil analysis

Question 17

Another term for a gray market is

Accepted Answer

A) equivalent exporting. 
B) back-channel market. 
C) mature marketing. 
D) parallel importing. 
E) transparent market. 
A) equivalent exporting. 
B) back-channel market. 
C) mature marketing. 
D) parallel importing. 
E) transparent market.

Question 18

The prominent global market-entry strategy among small- and medium-sized companies is

Accepted Answer

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

Question 19

In Europe,North America,South America,and the industrialized nations of Asia,those 13 to 19 years old

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 20

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

Accepted Answer

A) As the largest international importer and exporter,the U.S.accounts for 65 percent of world trade. 
B) World trade is calculated to include only the exchange of money for products or services. 
C) An estimated 35 percent of world trade involves countertrade. 
D) China,the United States,and Germany far outpace other countries in terms of imports and exports. 
E) Because of NAFTA,North American intratrade is no longer counted in calculations of world trade. 
A) As the largest international importer and exporter,the U.S.accounts for 65 percent of world trade. 
B) World trade is calculated to include only the exchange of money for products or services. 
C) An estimated 35 percent of world trade involves countertrade. 
D) China,the United States,and Germany far outpace other countries in terms of imports and exports. 
E) Because of NAFTA,North American intratrade is no longer counted in calculations of world trade.

Exam 7: Understanding and Reaching Global Consumers and Markets

Indirect exporting refers to

When Nestlé actually owns a subsidiary or division in a foreign country,such as its own ice cream manufacturing operation in China,this global market entry strategy is known as ________ and represents the greatest commitment a company can make to international sales.

Customs are

All of the following should be understood and appreciated about another society for a thorough cross-cultural analysis except which?

Mars,America's second-largest candy company,began doing business in Russia in the late 1980s.The Snickers bar is one of the top-selling candies in Russia and is marketed in much the same way as it is in the United States.What type of global company is Mars?

Figure 7-2 -The question mark in Figure 7-2 above leads to which of the following as a result of the imposition of tariffs and quotas?

The U.S.motorcycle manufacturer Harley-Davidson uses intermediaries to sell its motorcycles in numerous nations outside the United States.Harley-Davidson uses

What is considered normal and expected about the way people do things in a specific country is referred to as

Which market entry option allows a company to make the least number of changes in terms of its product,its organization,and even its corporate goals?

A country's income distribution is important because it gives a more reliable picture of a country's ________ than just per capita income alone.

All of the following are disadvantages of licensing except which?

Figure 7-4 -Once a company has decided to enter the global marketplace,it must select a means of market entry.One of the four general options is

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

The Parthenon evokes strong feelings from consumers in Greece and is referred to as the "holy rock." Coca-Cola marketers did not expect that this ________,when used in a marketing campaign that replaced the columns with Coke bottles,would arouse such an angry response in that country.

Another term for a gray market is

The prominent global market-entry strategy among small- and medium-sized companies is

In Europe,North America,South America,and the industrialized nations of Asia,those 13 to 19 years old

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

Creating Customer Relationships and Value Through Marketing

Developing Successful Organizational and Marketing Strategies

Scanning the Marketing Environment

Ethical and Social Responsibility for Sustainable Marketing

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

Services Marketing

Building the Price Foundation

Arriving at the Final Price

Managing Marketing Channels and Supply Chains

Retailing and Wholesaling

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

Implementing Interactive and Multichannel Marketing

Pulling It All Together: the Strategic Marketing Process

Writing Successful Marketing and Business Plans: Tips and Guidelines

Financial Statements and Ratios

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