Question 1

A disadvantage of a joint venture arrangement when entering a new global market is that

Accepted Answer

A) intermediaries have the potential to harm the brand. 
B) the firm entering the foreign market must pay royalties to the other firm. 
C) one of the companies forgoes control over its product. 
D) the two companies may disagree about policies. 
E) this method is likely to provide the fewest subsidies from the host country's government. 
A) intermediaries have the potential to harm the brand. 
B) the firm entering the foreign market must pay royalties to the other firm. 
C) one of the companies forgoes control over its product. 
D) the two companies may disagree about policies. 
E) this method is likely to provide the fewest subsidies from the host country's government. D

Question 2

Pan-European marketing strategies are possible because:

Accepted Answer

A) there is a legally binding code of economic conduct. 
B) there are effective countermeasures for protectionism. 
C) there are fewer regulatory restrictions on transportation,advertising,and promotion. 
D) there is a common language advantage among EU consumers. 
E) most companies within the EU are engaging in strategic global partnerships. 
A) there is a legally binding code of economic conduct. 
B) there are effective countermeasures for protectionism. 
C) there are fewer regulatory restrictions on transportation,advertising,and promotion. 
D) there is a common language advantage among EU consumers. 
E) most companies within the EU are engaging in strategic global partnerships. C

Question 3

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 E

Question 4

One disadvantage of direct investment when entering a new global market is that

Accepted Answer

A) intermediaries have the potential to harm the brand. 
B) the firm entering the foreign market must pay royalties to the government. 
C) the company forgoes control over its product. 
D) the financial commitments involved. 
E) this method is likely to provide the fewest cost savings relative to the other global market-entry options. 
A) intermediaries have the potential to harm the brand. 
B) the firm entering the foreign market must pay royalties to the government. 
C) the company forgoes control over its product. 
D) the financial commitments involved. 
E) this method is likely to provide the fewest cost savings relative to the other global market-entry options.

Question 5

Why is it a wise idea for global marketers use back translation? Provide an example to support your answer.

Accepted Answer

Back translation is where a translated w

Question 6

Countries moving from an agricultural to an industrial economy are referred to as __________ countries.

Accepted Answer

A) primitive 
B) emerging 
C) agrarian 
D) developing 
E) evolving 
A) primitive 
B) emerging 
C) agrarian 
D) developing 
E) evolving

Question 7

According to Figure 7-5 above,point "D" would most likely represent what option for entering the global marketplace?

Accepted Answer

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

Question 8

The appreciation of fashion,music,and a desire for novelty and trendier designs and images

Accepted Answer

A) are preferences found more in American teenagers than in most other cultures around the world. 
B) actually begin at age 10,but begin to decline significantly as students enter high school. 
C) ironically are found more for teenagers who cannot afford to make those purchases than for those who can. 
D) are preferences of teenagers around the world regardless of whether they live. 
E) are often established early among European teens and they typically linger well into adulthood. 
A) are preferences found more in American teenagers than in most other cultures around the world. 
B) actually begin at age 10,but begin to decline significantly as students enter high school. 
C) ironically are found more for teenagers who cannot afford to make those purchases than for those who can. 
D) are preferences of teenagers around the world regardless of whether they live. 
E) are often established early among European teens and they typically linger well into adulthood.

Question 9

The four largest importers of U.S.products and services are

Accepted Answer

A) Japan,Germany,China,and Canada. 
B) Canada,Mexico,China,and Japan. 
C) China,Brazil,Japan,and Germany. 
D) Mexico,Canada,Europe,and China. 
E) England,Canada,Australia,and New Zealand. 
A) Japan,Germany,China,and Canada. 
B) Canada,Mexico,China,and Japan. 
C) China,Brazil,Japan,and Germany. 
D) Mexico,Canada,Europe,and China. 
E) England,Canada,Australia,and New Zealand.

Question 10

Contract manufacturing 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 stated specifications. 
C) contracting between a foreign country and a local firm to invest together to create a local business. 
D) having a company handle its own exports directly,without intermediaries. 
E) exporting through an intermediary,which has the knowledge and the 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 stated specifications. 
C) contracting between a foreign country and a local firm to invest together to create a local business. 
D) having a company handle its own exports directly,without intermediaries. 
E) exporting through an intermediary,which has the knowledge and the means to succeed in selling a firm's product abroad.

Question 11

Global companies have five strategies for matching products and their promotion efforts to global markets.According to Figure 7-6 above,"B" refers to which type of strategy?

Accepted Answer

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

Question 12

The prescribed penalty for individuals found guilty of the theft of trade secrets is

Accepted Answer

A) up to 25 years in prison and fines up to $10 million. 
B) life in prison with chance of parole after 25 years. 
C) expulsion from the United States and/or revocation of citizenship. 
D) 30 years in prison and fines to be determined by the courts. 
E) up to 15 years in prison and fines up to $500,000. 
A) up to 25 years in prison and fines up to $10 million. 
B) life in prison with chance of parole after 25 years. 
C) expulsion from the United States and/or revocation of citizenship. 
D) 30 years in prison and fines to be determined by the courts. 
E) up to 15 years in prison and fines up to $500,000.

Question 13

According to Michael Porter's diamond of national competitive advantage,both the number and sophistication of domestic customers for an industry's product are examples of

Accepted Answer

A) structural conditions. 
B) demand conditions. 
C) socio-cultural conditions. 
D) competitive conditions. 
E) factor conditions. 
A) structural conditions. 
B) demand conditions. 
C) socio-cultural conditions. 
D) competitive conditions. 
E) factor conditions.

Question 14

A currency exchange rate refers to

Accepted Answer

A) the unit equivalency of all international currency. 
B) the ratio of a nation's basic unit of currency relative to the price of silver. 
C) the ratio of a nation's basic unit of currency relative to the price of gold. 
D) the price of one country's currency expressed in terms of another country's currency. 
E) the unit of wealth (gold,oil,diamonds,etc. )upon which a nation bases its national currency. 
A) the unit equivalency of all international currency. 
B) the ratio of a nation's basic unit of currency relative to the price of silver. 
C) the ratio of a nation's basic unit of currency relative to the price of gold. 
D) the price of one country's currency expressed in terms of another country's currency. 
E) the unit of wealth (gold,oil,diamonds,etc. )upon which a nation bases its national currency.

Question 15

Competitive advantage for global firms grows out of continuous improvement,__________,and change.

Accepted Answer

A) product quality 
B) employment of a multicultural or multinational staff 
C) membership in a formalized trade organization 
D) market research 
E) innovation 
A) product quality 
B) employment of a multicultural or multinational staff 
C) membership in a formalized trade organization 
D) market research 
E) innovation

Question 16

Which of the following statements about bribery is most accurate?

Accepted Answer

A) Bribes,kickbacks,and payoffs offered to entice someone to commit an illegal or improper act are deemed corrupt in some cultures but not in others. 
B) The world's major exporting nations have agreed to treat bribery of foreign government officials as a violation of trade agreements. 
C) Bribes paid to foreign companies is in some cases a tax-deductible expense in the U.S. 
D) It is a crime for U.S.corporations to bribe an official of a foreign government or political party unless pre-approved by the Federal Trade Commission. 
E) It is illegal for a U.S.corporation to bribe an official of a foreign government or political party to obtain or retain business in a foreign country. 
A) Bribes,kickbacks,and payoffs offered to entice someone to commit an illegal or improper act are deemed corrupt in some cultures but not in others. 
B) The world's major exporting nations have agreed to treat bribery of foreign government officials as a violation of trade agreements. 
C) Bribes paid to foreign companies is in some cases a tax-deductible expense in the U.S. 
D) It is a crime for U.S.corporations to bribe an official of a foreign government or political party unless pre-approved by the Federal Trade Commission. 
E) It is illegal for a U.S.corporation to bribe an official of a foreign government or political party to obtain or retain business in a foreign country.

Question 17

Someone who wanted to study the fact that in some nations,black is a sign of mourning while in other nations,white is a sign of mourning would be studying

Accepted Answer

A) semiotics. 
B) semantics. 
C) semaphorics. 
D) cultural symbolism. 
E) cultural linguistics. 
A) semiotics. 
B) semantics. 
C) semaphorics. 
D) cultural symbolism. 
E) cultural linguistics.

Question 18

Once a company has decided to enter the global marketplace,it must select a means of market entry.Four general options exist: (1)__________; (2)licensing; (3)joint venture;and (4)direct investment.

Accepted Answer

A) exporting 
B) accreditation 
C) countertrading 
D) cooperative 
E) franchising 
A) exporting 
B) accreditation 
C) countertrading 
D) cooperative 
E) franchising

Question 19

Recently,the Japanese government,under pressure from its domestic farm lobby,slapped government taxes on mushrooms,leeks,and the reeds used in tatami mats that were being imported from China.These taxes Japan levied are referred to as

Accepted Answer

A) WTO taxes. 
B) quotas. 
C) tariffs. 
D) excise taxes. 
E) subsidies. 
A) WTO taxes. 
B) quotas. 
C) tariffs. 
D) excise taxes. 
E) subsidies.

Question 20

Which of the following statements regarding global brands is most accurate?

Accepted Answer

A) A global brand has dispersed marketing centers,each of which is responsible for a specific region. 
B) A global brand is marketed under the same name in multiple countries. 
C) A global brand alters the brand name for each dialect in a geographical region. 
D) A global brand delivers multiple benefits to the GDP of each country. 
E) A global brand is a collaborative effort among several different transnational firms. 
A) A global brand has dispersed marketing centers,each of which is responsible for a specific region. 
B) A global brand is marketed under the same name in multiple countries. 
C) A global brand alters the brand name for each dialect in a geographical region. 
D) A global brand delivers multiple benefits to the GDP of each country. 
E) A global brand is a collaborative effort among several different transnational firms.

Exam 7: Understanding and Reaching Global Consumers and Markets

A disadvantage of a joint venture arrangement when entering a new global market is that

Pan-European marketing strategies are possible because:

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

One disadvantage of direct investment when entering a new global market is that

Why is it a wise idea for global marketers use back translation? Provide an example to support your answer.

Countries moving from an agricultural to an industrial economy are referred to as __________ countries.

According to Figure 7-5 above,point "D" would most likely represent what option for entering the global marketplace?

The appreciation of fashion,music,and a desire for novelty and trendier designs and images

The four largest importers of U.S.products and services are

Contract manufacturing refers to

Global companies have five strategies for matching products and their promotion efforts to global markets.According to Figure 7-6 above,"B" refers to which type of strategy?

The prescribed penalty for individuals found guilty of the theft of trade secrets is

According to Michael Porter's diamond of national competitive advantage,both the number and sophistication of domestic customers for an industry's product are examples of

A currency exchange rate refers to

Competitive advantage for global firms grows out of continuous improvement,__________,and change.

Which of the following statements about bribery is most accurate?

Someone who wanted to study the fact that in some nations,black is a sign of mourning while in other nations,white is a sign of mourning would be studying

Once a company has decided to enter the global marketplace,it must select a means of market entry.Four general options exist: (1)__________; (2)licensing; (3)joint venture;and (4)direct investment.

Recently,the Japanese government,under pressure from its domestic farm lobby,slapped government taxes on mushrooms,leeks,and the reeds used in tatami mats that were being imported from China.These taxes Japan levied are referred to as

Which of the following statements regarding global brands is most accurate?

Creating Customer Relationships and Value Through Marketing

Developing Successful Organizational and Marketing 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

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 to Connect With Consumers

Personal Selling and Sales Management

Implementing Interactive and Multichannel Marketing

Pulling It All Together: the Strategic Marketing Process

Building an Effective Marketing Plan

Financial Aspects of Marketing

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