Question 1

Tariffs refer to

Accepted Answer

A) government payments to companies or industries that primarily serve to create competitive advantage for domestic products. 
B) government taxes on products or services entering a country that primarily serve to raise prices on imports. 
C) a restriction placed on the amount of a product allowed to enter or leave a country. 
D) a minimum requirement for the purchase between two or more nations of products or services. 
E) a refusal to purchase or exchange products or services with another nation unless certain financial or ideological requirements have been satisfied. 
A) government payments to companies or industries that primarily serve to create competitive advantage for domestic products. 
B) government taxes on products or services entering a country that primarily serve to raise prices on imports. 
C) a restriction placed on the amount of a product allowed to enter or leave a country. 
D) a minimum requirement for the purchase between two or more nations of products or services. 
E) a refusal to purchase or exchange products or services with another nation unless certain financial or ideological requirements have been satisfied.

Question 2

The European Union (EU)consists of 28 countries with about 750 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) France 
A) Poland 
B) Greece 
C) Ireland 
D) Switzerland 
E) France

Question 3

Chrysler Corp.wanted to sell its Jeeps in Japan.The car was priced in U.S.dollars at about $19,000,but when it reached the Japanese car showrooms,its price was over 3,100,000 Japanese yen,and the Japanese could not afford to buy it.Its price was set without regard for the

Accepted Answer

A) balance of price. 
B) currency exchange rate. 
C) reciprocity price. 
D) balance of payments. 
E) balance of trade. 
A) balance of price. 
B) currency exchange rate. 
C) reciprocity price. 
D) balance of payments. 
E) balance of trade.

Question 4

In terms of the global marketplace,there are three primary types of companies: ________ firms,multinational firms,and transnational firms.

Accepted Answer

A) worldwide 
B) conglomerate 
C) intercontinental 
D) international 
E) cosmopolitan 
A) worldwide 
B) conglomerate 
C) intercontinental 
D) international 
E) cosmopolitan

Question 5

The reverence that Japan shows toward its elderly is an example of that nation's

Accepted Answer

A) values. 
B) beliefs. 
C) customs. 
D) religion. 
E) cultural diversity. 
A) values. 
B) beliefs. 
C) customs. 
D) religion. 
E) cultural diversity.

Question 6

Licensing refers to

Accepted Answer

A) offering the right to a trademark,patent,trade secret,or other similarly valued items of intellectual property in return for a royalty or a fee. 
B) contracting with a foreign firm to manufacture products according to certain specifications. 
C) a foreign country and a local firm investing together to create a local business. 
D) having a company handle its own exports directly without intermediaries. 
E) exporting through an intermediary,which often has the knowledge and means to succeed in selling a firm's product abroad. 
A) offering the right to a trademark,patent,trade secret,or other similarly valued items of intellectual property in return for a royalty or a fee. 
B) contracting with a foreign firm to manufacture products according to certain specifications. 
C) a foreign country and a local firm investing together to create a local business. 
D) having a company handle its own exports directly without intermediaries. 
E) exporting through an intermediary,which often has the knowledge and means to succeed in selling a firm's product abroad.

Question 7

A New York car wash owner wanted to open a car wash in Quebec,Canada.He hired a U.S.translator to create signage for the new venture and to design some simple advertising.It was not until the business was opened that he realized he should have used ________.His French signs actually said "car bath" instead of "car wash."

Accepted Answer

A) Esperanto 
B) back translation 
C) semiotics 
D) semantic symbolism 
E) linguistic exchange 
A) Esperanto 
B) back translation 
C) semiotics 
D) semantic symbolism 
E) linguistic exchange

Question 8

Figure 7-5
  
-Global companies have five strategies for matching products and their promotion efforts to global markets.According to Figure 7-5 above,D refers to which type of strategy?

Accepted Answer

A) product extension strategy 
B) product adaptation strategy 
C) dual adaptation strategy 
D) product invention strategy 
E) communication adaptation strategy 
A) product extension strategy 
B) product adaptation strategy 
C) dual adaptation strategy 
D) product invention strategy 
E) communication adaptation strategy

Question 9

Cross-cultural analysis refers to the study of

Accepted Answer

A) the subgroups within the larger,or national,culture with unique values,ideas,and attitudes. 
B) the set of values,ideas,and attitudes that are learned and shared among the consumers of a country. 
C) the similarities and differences among consumers in two or more nations or societies. 
D) the buying behaviors within a given nation to identify similarities and differences among individuals. 
E) the buying behaviors within a given nation that link a person's actions to the cultural group with which he or she identifies most. 
A) the subgroups within the larger,or national,culture with unique values,ideas,and attitudes. 
B) the set of values,ideas,and attitudes that are learned and shared among the consumers of a country. 
C) the similarities and differences among consumers in two or more nations or societies. 
D) the buying behaviors within a given nation to identify similarities and differences among individuals. 
E) the buying behaviors within a given nation that link a person's actions to the cultural group with which he or she identifies most.

Question 10

Figure 7-5
  
-As a general rule,________ seems to work best when the consumer target market for the product is alike across countries and cultures-that is,consumers share the same desires,needs,and use for the product.

Accepted Answer

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

Question 11

Figure 7-5
  
-Frito-Lay produces and markets potato chips in Russia that have seafood flavor.This is an example of which type of global marketing product and promotion strategy?

Accepted Answer

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

Question 12

A form of low-risk and capital-free entry into international markets that includes local manufacturing is referred to as

Accepted Answer

A) indirect exporting. 
B) direct ownership. 
C) joint ventures. 
D) licensing. 
E) direct exporting. 
A) indirect exporting. 
B) direct ownership. 
C) joint ventures. 
D) licensing. 
E) direct exporting.

Question 13

When foreign currencies can buy more U.S.dollars,

Accepted Answer

A) U)S.products are more expensive to foreign customers. 
B) U)S.products are more expensive to U.S.customers. 
C) U)S.products are less expensive to foreign customers. 
D) economists consider it an indicator of an impending long-term economic upturn. 
E) American consumers will buy in large quantities and stockpile in fear of an impending economic crisis. 
A) U)S.products are more expensive to foreign customers. 
B) U)S.products are more expensive to U.S.customers. 
C) U)S.products are less expensive to foreign customers. 
D) economists consider it an indicator of an impending long-term economic upturn. 
E) American consumers will buy in large quantities and stockpile in fear of an impending economic crisis.

Question 14

Which of the following is a disadvantage associated with licensing?

Accepted Answer

A) The licensee pays lower wages and sells at lower prices. 
B) The licensor may create its own competition. 
C) The foreign government dislikes it because it does not increase local employment. 
D) This is the most expensive and risky method for global expansion. 
E) The firm's brand does not get international exposure. 
A) The licensee pays lower wages and sells at lower prices. 
B) The licensor may create its own competition. 
C) The foreign government dislikes it because it does not increase local employment. 
D) This is the most expensive and risky method for global expansion. 
E) The firm's brand does not get international exposure.

Question 15

A global marketing strategy refers to

Accepted Answer

A) the strategy used by multinational firms that have as many different product variations,brand names,and advertising programs as countries in which they do business. 
B) the strategy of transnational firms not to employ adaptive marketing techniques when there are cultural differences,but to redirect their marketing resources toward customer education. 
C) the strategy of transnational firms that employ the practice of standardizing marketing activities when there are cultural similarities and adapting them when cultures differ. 
D) the global strategy of seeking out already established firms in other nations and selling them the rights to manufacture and distribute the firm's products through a host nation's local businesses. 
E) the strategy currently used by most U.S.domestic firms that when entering a new international market,these firms offer only those products that require the least amount of product adaptation. 
A) the strategy used by multinational firms that have as many different product variations,brand names,and advertising programs as countries in which they do business. 
B) the strategy of transnational firms not to employ adaptive marketing techniques when there are cultural differences,but to redirect their marketing resources toward customer education. 
C) the strategy of transnational firms that employ the practice of standardizing marketing activities when there are cultural similarities and adapting them when cultures differ. 
D) the global strategy of seeking out already established firms in other nations and selling them the rights to manufacture and distribute the firm's products through a host nation's local businesses. 
E) the strategy currently used by most U.S.domestic firms that when entering a new international market,these firms offer only those products that require the least amount of product adaptation.

Question 16

Indirect exporting occurs when a firm sells its domestically produced products in a foreign country

Accepted Answer

A) in violation of a quota. 
B) without paying import tariffs. 
C) without paying export duties. 
D) through a joint venture. 
E) through an intermediary. 
A) in violation of a quota. 
B) without paying import tariffs. 
C) without paying export duties. 
D) through a joint venture. 
E) through an intermediary.

Question 17

Which form of entry into a foreign market requires the greatest commitment?

Accepted Answer

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

Question 18

Global competition exists when

Accepted Answer

A) a firm produces and markets its products domestically rather than globally. 
B) firms originate,produce,and market their products and services worldwide. 
C) two firms from two different countries compete for market share in a single domestic market. 
D) two or more firms from different nations combine their resources to market products in a single domestic market. 
E) the firm from one nation dominates the market for its product in every nation. 
A) a firm produces and markets its products domestically rather than globally. 
B) firms originate,produce,and market their products and services worldwide. 
C) two firms from two different countries compete for market share in a single domestic market. 
D) two or more firms from different nations combine their resources to market products in a single domestic market. 
E) the firm from one nation dominates the market for its product in every nation.

Question 19

Before Apple's iPhone 7 was officially for sale in China,it was being sold there.These phones were purchased in the United States and Australia and then resold by unauthorized vendors in China for between $1,700 and $2,500.These products are considered to be part of

Accepted Answer

A) under-the-counter sales. 
B) over-the-counter sales. 
C) the gray market. 
D) integrated global channels. 
E) breaking the distribution monopoly. 
A) under-the-counter sales. 
B) over-the-counter sales. 
C) the gray market. 
D) integrated global channels. 
E) breaking the distribution monopoly.

Question 20

The Japanese manufacture tractors for rice paddies.They are smaller than most U.S.tractors and perfect for a weekend farmer who wants to tend to a small garden.The tractors are not sold in the United States through any authorized channels,yet they are available in the United States at prices below the manufacturer's suggested retail price.These Japanese tractors are being sold

Accepted Answer

A) through the gray market. 
B) under the table. 
C) over the counter. 
D) with bypassed global channels. 
E) by breaking the distribution monopoly. 
A) through the gray market. 
B) under the table. 
C) over the counter. 
D) with bypassed global channels. 
E) by breaking the distribution monopoly.

Exam 7: Understanding and Reaching Global Consumers and Markets

Tariffs refer to

The European Union (EU)consists of 28 countries with about 750 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?

Chrysler Corp.wanted to sell its Jeeps in Japan.The car was priced in U.S.dollars at about $19,000,but when it reached the Japanese car showrooms,its price was over 3,100,000 Japanese yen,and the Japanese could not afford to buy it.Its price was set without regard for the

In terms of the global marketplace,there are three primary types of companies: ________ firms,multinational firms,and transnational firms.

The reverence that Japan shows toward its elderly is an example of that nation's

Licensing refers to

Figure 7-5 -Global companies have five strategies for matching products and their promotion efforts to global markets.According to Figure 7-5 above,D refers to which type of strategy?

Cross-cultural analysis refers to the study of

Figure 7-5 -As a general rule,________ seems to work best when the consumer target market for the product is alike across countries and cultures-that is,consumers share the same desires,needs,and use for the product.

Figure 7-5 -Frito-Lay produces and markets potato chips in Russia that have seafood flavor.This is an example of which type of global marketing product and promotion strategy?

A form of low-risk and capital-free entry into international markets that includes local manufacturing is referred to as

When foreign currencies can buy more U.S.dollars,

Which of the following is a disadvantage associated with licensing?

A global marketing strategy refers to

Indirect exporting occurs when a firm sells its domestically produced products in a foreign country

Which form of entry into a foreign market requires the greatest commitment?

Global competition exists when

Before Apple's iPhone 7 was officially for sale in China,it was being sold there.These phones were purchased in the United States and Australia and then resold by unauthorized vendors in China for between $1,700 and $2,500.These products are considered to be part of

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

Filters