Question 1

Generally, as the proportion of middle-income households in a country increases, the nation's purchasing power __________.

Accepted Answer

A) increases 
B) decreases 
C) levels off 
D) becomes less of an economic priority 
E) becomes progressively unstable 
A) increases 
B) decreases 
C) levels off 
D) becomes less of an economic priority 
E) becomes progressively unstable

Question 2

FIGURE 7-1  
-The orange box in Figure 7-1 above should read

Accepted Answer

A) "increase world trade." 
B) "decrease world trade." 
C) "limit exports." 
D) "limit imports." 
E) "doubles protectionism." 
A) "increase world trade." 
B) "decrease world trade." 
C) "limit exports." 
D) "limit imports." 
E) "doubles protectionism."

Question 3

CAFTA-DR, a comprehensive free trade agreement between Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, Nicaragua, and __________.

Accepted Answer

A) the United States 
B) Panama 
C) Belize 
D) Cuba 
E) the Canary Islands 
A) the United States 
B) Panama 
C) Belize 
D) Cuba 
E) the Canary Islands

Question 4

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) contracting with a foreign firm to manufacture products according to stated specifications. 
C) the combined investment of a foreign country and a local firm to create a local business. 
D) when a firm sells its domestically-produced goods in a foreign country through an intermediary. 
E) when a firm sells its domestically-produced goods in a foreign country without intermediaries. 
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) contracting with a foreign firm to manufacture products according to stated specifications. 
C) the combined investment of a foreign country and a local firm to create a local business. 
D) when a firm sells its domestically-produced goods in a foreign country through an intermediary. 
E) when a firm sells its domestically-produced goods in a foreign country without intermediaries.

Question 5

Global brand refers to

Accepted Answer

A) two or more domestic products that coincidentally share the same brand name but represent two completely unrelated products or manufacturers. 
B) two or more international products that coincidentally share the same brand name but represent two completely unrelated products or manufacturers. 
C) a brand marketed under the same name in multiple countries with similar and centrally coordinated marketing programs. 
D) a product that is essentially the same, but that has had minor adaptations made to meet the more specific needs of different nations. 
E) a brand marketed under different names in multiple countries with similar and centrally coordinated marketing programs. 
A) two or more domestic products that coincidentally share the same brand name but represent two completely unrelated products or manufacturers. 
B) two or more international products that coincidentally share the same brand name but represent two completely unrelated products or manufacturers. 
C) a brand marketed under the same name in multiple countries with similar and centrally coordinated marketing programs. 
D) a product that is essentially the same, but that has had minor adaptations made to meet the more specific needs of different nations. 
E) a brand marketed under different names in multiple countries with similar and centrally coordinated marketing programs.

Question 6

Nescafé coffee is marketed using different coffee blends and promotional campaigns to match consumer preferences in different countries.For example Nescafé generally emphasizes the taste, aroma, and warmth of shared moments in its advertising around the world.However in Thailand Nescafé is advertised as a way to relax from the pressures of daily life.Nescafé is using which type of product strategy?

Accepted Answer

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

Question 7

The study of similarities and differences among consumers in two or more nations or societies is referred to as __________.

Accepted Answer

A) market synthesis 
B) cross-cultural analysis 
C) international sociographics 
D) transnational anthropology 
E) multicultural psychographics 
A) market synthesis 
B) cross-cultural analysis 
C) international sociographics 
D) transnational anthropology 
E) multicultural psychographics

Question 8

Both Honda and Toyota have plants in the U.S.that use American labor.This example is an illustration of Honda and Toyota practicing

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 9

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

Accepted Answer

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

Question 10

Almost all countries have some division of social class.The determinant factor for assigning these classes may differ from country to country.For example, in the United States the primary determinant factor for assigning social class is occupation, in India it is birthright, in China it is geographical region and education, and in Singapore it is income.These differences are best explained in terms of a country's

Accepted Answer

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

Question 11

A joint venture refers to

Accepted Answer

A) offering the right to a trademark, patent, trade secret, or similarly valued items of intellectual property in return for a royalty or fee. 
B) contracting with a foreign firm to manufacture products according to certain specifications. 
C) when a foreign company and a local firm invest together to create a local business. 
D) having a company handle its own exports directly, but using intermediaries for importing. 
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 similarly valued items of intellectual property in return for a royalty or fee. 
B) contracting with a foreign firm to manufacture products according to certain specifications. 
C) when a foreign company and a local firm invest together to create a local business. 
D) having a company handle its own exports directly, but using intermediaries for importing. 
E) exporting through an intermediary, which often has the knowledge and means to succeed in selling a firm's product abroad.

Question 12

When a firm sells a product in a foreign country below its domestic price or below its actual cost it is referred to as

Accepted Answer

A) dumping. 
B) surplus marketing. 
C) loss-leader pricing. 
D) second-market pricing. 
E) entrepreneurial pricing. 
A) dumping. 
B) surplus marketing. 
C) loss-leader pricing. 
D) second-market pricing. 
E) entrepreneurial pricing.

Question 13

Tariffs refer to

Accepted Answer

A) a reduction on or refusal to purchase goods from foreign nations with which a country has philosophical or ideological differences. 
B) government taxes on goods or services entering a country that primarily serve to raise prices on imports tariffs. 
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 goods or services with another nation unless certain financial or ideological requirements have been satisfied. 
A) a reduction on or refusal to purchase goods from foreign nations with which a country has philosophical or ideological differences. 
B) government taxes on goods or services entering a country that primarily serve to raise prices on imports tariffs. 
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 goods or services with another nation unless certain financial or ideological requirements have been satisfied.

Question 14

Cultural symbols refer to

Accepted Answer

A) ideas that can be protected by international copyrights. 
B) ideas that cannot be expressed by words or characters. 
C) things that represent values that exist solely within a nation's boundaries. 
D) things that represent ideas and concepts in a specific culture. 
E) icons that consist of pictures or designs that represent ideas and concepts that are considered to be universal. 
A) ideas that can be protected by international copyrights. 
B) ideas that cannot be expressed by words or characters. 
C) things that represent values that exist solely within a nation's boundaries. 
D) things that represent ideas and concepts in a specific culture. 
E) icons that consist of pictures or designs that represent ideas and concepts that are considered to be universal.

Question 15

Give at least one argument for and one argument against protectionism.

Accepted Answer

People who favor protectionism believe t

Question 16

Explain the difference between a joint venture and direct investment market-entry strategies.What are the advantages and disadvantages of each approach?

Accepted Answer

When a foreign company and a local firm

Question 17

Gray market refers to

Accepted Answer

A) the segment of products specifically designed for the need of older buyers. 
B) a situation where products are sold through unauthorized channels of distribution. 
C) a once active and powerful market that is rapidly becoming the bottom of the barrel. 
D) a pricing structure that is based upon "not-quite-clear" price negotiations or "haggling" that is considered acceptable in some countries but not others. 
E) the willingness of one party to accept "gifts" in exchange for better prices or price allowances. 
A) the segment of products specifically designed for the need of older buyers. 
B) a situation where products are sold through unauthorized channels of distribution. 
C) a once active and powerful market that is rapidly becoming the bottom of the barrel. 
D) a pricing structure that is based upon "not-quite-clear" price negotiations or "haggling" that is considered acceptable in some countries but not others. 
E) the willingness of one party to accept "gifts" in exchange for better prices or price allowances.

Question 18

Quota refers to

Accepted Answer

A) a government tax on goods or services entering a country that primarily serves to raise prices on imports. 
B) a reduction on or refusal to purchase goods from foreign nations with which a country has philosophical or ideological differences. 
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 goods or services with another nation unless certain financial or ideological requirements have been satisfied. 
A) a government tax on goods or services entering a country that primarily serves to raise prices on imports. 
B) a reduction on or refusal to purchase goods from foreign nations with which a country has philosophical or ideological differences. 
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 goods or services with another nation unless certain financial or ideological requirements have been satisfied.

Question 19

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 20

The company that makes Breathe-Right nasal strips sells the same product in other countries.This is an example of which type of international product strategy?

Accepted Answer

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

Generally, as the proportion of middle-income households in a country increases, the nation's purchasing power __________.

FIGURE 7-1 -The orange box in Figure 7-1 above should read

CAFTA-DR, a comprehensive free trade agreement between Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, Nicaragua, and __________.

Indirect exporting refers to

Global brand refers to

The study of similarities and differences among consumers in two or more nations or societies is referred to as __________.

Both Honda and Toyota have plants in the U.S.that use American labor.This example is an illustration of Honda and Toyota practicing

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

A joint venture refers to

When a firm sells a product in a foreign country below its domestic price or below its actual cost it is referred to as

Tariffs refer to

Cultural symbols refer to

Give at least one argument for and one argument against protectionism.

Explain the difference between a joint venture and direct investment market-entry strategies.What are the advantages and disadvantages of each approach?

Gray market refers to

Quota refers to

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 company that makes Breathe-Right nasal strips sells the same product in other countries.This is an example of which type of international product strategy?

Creating Customer Relationships and Value Through Marketing

Developing Successful Marketing and Organizational Strategies

Scanning the Marketing Environment

Ethical and Social Responsibility in 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

Pricing Products and Services

Managing Marketing Channels and Supply Chains

Retailing and Wholesaling

Integrated Marketing Communications and Direct Marketing

Advertising, Sales Promotion, and Public Relations

Personal Selling and Sales Management

Building an Effective Marketing Plan

Filters

Exam 7: Understanding and Reaching Global Consumers and Markets

Generally, as the proportion of middle-income households in a country increases, the nation's purchasing power __________.

FIGURE 7-1 -The orange box in Figure 7-1 above should read

CAFTA-DR, a comprehensive free trade agreement between Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, Nicaragua, and __________.

Indirect exporting refers to

Global brand refers to

The study of similarities and differences among consumers in two or more nations or societies is referred to as __________.

Both Honda and Toyota have plants in the U.S.that use American labor.This example is an illustration of Honda and Toyota practicing

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

A joint venture refers to

When a firm sells a product in a foreign country below its domestic price or below its actual cost it is referred to as

Tariffs refer to

Cultural symbols refer to

Give at least one argument for and one argument against protectionism.

Explain the difference between a joint venture and direct investment market-entry strategies.What are the advantages and disadvantages of each approach?

Gray market refers to

Quota refers to

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 company that makes Breathe-Right nasal strips sells the same product in other countries.This is an example of which type of international product strategy?

Creating Customer Relationships and Value Through Marketing

Developing Successful Marketing and Organizational Strategies

Scanning the Marketing Environment

Ethical and Social Responsibility in 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

Pricing Products and Services

Managing Marketing Channels and Supply Chains

Retailing and Wholesaling

Integrated Marketing Communications and Direct Marketing

Advertising, Sales Promotion, and Public Relations

Personal Selling and Sales Management

Building an Effective Marketing Plan

Filters