Deck 19: The Global Marketplace

Question 1

Of the following,which is the LEAST critical decision a company should make before going abroad?

A)what its international marketing objectives and policies are
B)how many people it wants to employ
C)what volume of foreign sales it wants
D)how many countries it wants to market in
E)what types of countries it wants to market in

Answer 1

B

Question 2

is a group of nations organized to work toward common goals in the regulation of international trade.

A)A global firm
B)A multinational enterprise
C)An economic community
D)A joint venture
E)A strategic marketing group

Answer 2

C

Question 3

Nike faced a situation in a Muslim country with the stylized "Air" logo on its shoes.Muslims were offended because Nike's "Air" resembled "Allah" in Arabic script.This is an example of .

A)product adaptation
B)communication adaptation
C)the impact of culture on marketing strategy
D)product invention
E)adapted global marketing

Answer 3

C

Question 4

A(n)is a limit on the amount of goods that an importing country will accept in certain product categories.

A)tariff
B)quota
C)benchmark
D)exchange control
E)embargo

Question 5

involves less investment because the firm does not require an overseas marketing organization or network.It also involves less risk.

A)Direct exporting
B)Contract manufacturing
C)Joint venturing
D)Licensing
E)Indirect exporting

Question 6

Which of the following involves the direct exchange of goods and services?

A)buyback
B)barter
C)compensation
D)cash transaction
E)blocked currency

Question 7

Think Ink is a growing company that sells a variety of inks for home and business printers.Management at Think Ink has decided to open a sales branch overseas to handle sales and distribution abroad.Think Ink is engaging in _ .

A)management contracting
B)joint ownership
C)licensing
D)direct exporting
E)indirect exporting

Question 8

Hershey recently linked with Indian- based Godrej Beverages and Foods to make and distribute its chocolates in that country.When it comes to selling chocolate in India,Hershey will need all the help it can from its new local partner.This is an example of which joint venture?

A)management contracting
B)indirect exporting
C)contract manufacturing
D)joint ownership
E)licensing

Question 9

Lower costs in the form of cheaper labor or raw materials,foreign government investment incentives,freight savings,and the opportunity to improve the company image are all factors that would likely lead a company to in a foreign market.

A)conduct management contracting
B)initiate joint ownerships
C)make a direct investment
D)begin licensing
E)use direct exporting

Question 10

A Gucci handbag may sell for $60 in Italy and $240 in the United States.It must add the cost of transportation,tariffs,importer margin,wholesaler margin,and retailer margin to its factory price.Gucci faces a problem.

A)price escalation
B)product adaptation
C)tariff
D)licensing
E)dumping

Question 11

In 1994,_ established a free trade zone among the United States,Canada,and Mexico.

A)CAFTA
B)GATT
C)WTO
D)EU
E)NAFTA

Question 12

Bias against bids made by American companies is an example of a(n)_.

A)boycott
B)nontariff trade barrier
C)quota
D)exchange control
E)tariff

Question 13

All of the following are modes of entry that companies can use when they have decided to sell in a foreign country EXCEPT .

A)embargo
B)joint venturing
C)exporting
D)direct investment
E)licensing

Question 14

Formed in 2004 and formalized in 2008,makes up the largest trading block after NAFTA and the European Union.

A)UNASUR
B)GATT
C)FTAA
D)CAFTA- DR
E)MCAN

Question 15

A _ is one that,by operating in more than one country,gains marketing,production,research and development,and financial advantages that are not available to purely domestic competitors.

A)domestic firm
B)global firm
C)free trade zone
D)whole- channel view
E)direct investment

Question 16

There is concern that through the _ lower barriers inside Europe will create only thicker outside walls.

A)Euro- Scandinavian Pact
B)Atlantic Free- Trade Area
C)Euro- American Union
D)European Union
E)General Agreement on Tariffs and Trade

Question 17

Formed in 1957,the _ set out to create a single European market by reducing barriers to the free flow of products,services,finances,and labor among member countries and developing policies on trade with nonmember nations.

A)NAFTA
B)Uruguay Round
C)European Union
D)European Organization
E)CAFTA

Question 18

Nokia created dustproof keypads,crucial in dry,hot countries with many unpaved roads,such as India.This is an example of .

A)product adaptation
B)straight product extension
C)communication adaptation
D)product invention
E)standard global marketing

Question 19

occurs when a company either charges less than its costs or less than it charges in its home market.

A)Countertrade
B)Straight product extension
C)Licensing
D)Dumping
E)Price escalation

Question 20

Refer to the scenario below to answer the following questions.
Selman & Saks,a maker of men's and women's razors and electric hair trimmers,had little reason to become involved in the global arena.But after acquiring Wellman Enterprises,whose largest division engages in a licensing agreement with a German firm to produce women's hosiery,managers at Selman & Saks wondered just whether a company- wide global focus would be more profitable after all.
Managers at Selman & Saks studied Wellman's licensing agreement in great detail.Though seeing first- hand the benefits Wellman found with the licensing agreement,managers decided that Selman & Saks would target the French market merely via exporting.
With the assistance of a domestic export department,the Selman & Saks razors and hair trimmers entered France.For six months,sales were mediocre.But after that,sales suffered.Opinions varied among numerous managers as to the cause of the failure."Who knows the local market better than people who live there?" was a comment heard throughout Selman & Saks."Maybe we needed an alliance with a French firm,or a licensing agreement,before racing to get there."
If Selman & Saks allowed a French company to produce and market razors and trimmers carrying the company's brand in exchange for a royalty,Selman & Saks would be using which market entry strategy?

A)joint ownership
B)contract manufacturing
C)licensing
D)exporting
E)franchising

Question 21

Heineken beer is sold successfully in about the same form around the world.This is an example of which product strategy?

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

Question 22

Refer to the scenario below to answer the following questions.
Selman & Saks,a maker of men's and women's razors and electric hair trimmers,had little reason to become involved in the global arena.But after acquiring Wellman Enterprises,whose largest division engages in a licensing agreement with a German firm to produce women's hosiery,managers at Selman & Saks wondered just whether a company- wide global focus would be more profitable after all.
Managers at Selman & Saks studied Wellman's licensing agreement in great detail.Though seeing first- hand the benefits Wellman found with the licensing agreement,managers decided that Selman & Saks would target the French market merely via exporting.
With the assistance of a domestic export department,the Selman & Saks razors and hair trimmers entered France.For six months,sales were mediocre.But after that,sales suffered.Opinions varied among numerous managers as to the cause of the failure."Who knows the local market better than people who live there?" was a comment heard throughout Selman & Saks."Maybe we needed an alliance with a French firm,or a licensing agreement,before racing to get there."
Based on the passage,Selman & Saks entered the French market to gain which of the following benefits of global trade?

A)the ability to offset domestic economic cycles
B)access to less expensive labor
C)access to less expensive materials
D)access to new consumer markets
E)access to foreign investment incentives

Question 23

At Comfort Homes,a manufacturer of furniture and home accessories,the global operating units report directly to the chief executive instead of a head of an international division.The company recruits management from many countries and buys components and supplies where they cost the least.Comfort Homes is most accurately classified as a(n).

A)direct exporter
B)global organization
C)geographical organization
D)international subsidiary
E)world product group

Question 24

In a(n),executives are trained in worldwide operations,not just domestic or international operations.

A)international division
B)direct exporting company
C)global organization
D)joint venture
E)international subsidiary

Question 25

Which of the following is a factor that is likely to push a company to decide NOT to enter international markets?

A)The company needs to counterattack international competitors in their home markets.
B)Foreign markets present higher profit opportunities.
C)Global competitors have offered similar products at lower prices.
D)The company's home market is stagnant.
E)The company would have to redesign its products.

Question 26

Changing promotions for each local market is known as .

A)a straight extension
B)product adaptation
C)advertising depth
D)standardized global marketing
E)communication adaptation

Question 27

Growing Green is a company that markets organic and environmentally friendly gardening and landscaping supplies and equipment.Members of management at Growing Green are examining the policies of GATT,actions undertaken by the WTO,and the agreements made by NAFTA and the EU.In which stage of the international marketing process is Growing Green?

A)deciding which markets to enter
B)deciding on the global marketing program
C)deciding how to enter the market
D)looking at the global marketing environment
E)deciding whether to go global

Question 28

Vidal Sassoon shampoos contain different amounts of scent according to what country they are sold in.This is an example of .

A)product adaptation
B)product invention
C)communication adaptation
D)standardized global marketing
E)straight product extension

Question 29

are major exporters of manufactured goods,services,and investment funds.They trade goods among themselves and export them to other types of economies for raw materials and semifinished goods.

A)Material economies
B)Industrial economies
C)Industrializing economies
D)Subsistent economies
E)Developing economy

Question 30

A company could conduct direct exporting in all of the following ways EXCEPT which one?

A)It can set up an overseas sales branch.
B)It can send home- based sales people abroad to find more business.
C)It can set up a domestic export department.
D)It can work through independent international marketing intermediaries.
E)It can hire foreign- based agents who sell goods on its behalf.

Question 31

Coca- Cola markets internationally by _ _ bottlers around the world for a fee or royalty and then supplying them with the syrups needed to produce Coke products.

A)creating joint ownerships with
B)directly investing in
C)contract manufacturing with
D)licensing
E)management contracting with

Question 32

Which of the following would a defender of globalization most likely use as an example to argue that concerns of Americanization are overblown and that globalization is indeed a two- way street?

A)the growing number of IKEA furniture stores in the United States
B)the view of McDonald's as a domestic brand in China
C)the growing popularity of coffee in China since the introduction of Starbucks
D)the initial failure of Disneyland Paris
E)the antiglobalization protests aimed at KFC

Question 33

Which of the following is an economic factor that a company should consider before deciding to enter an international market?

A)natural resources
B)cultural and social norms
C)climate
D)population size and growth
E)political stability

Question 34

Which type of business is LEAST likely to find it necessary to enter international markets in order to survive?

A)automobile producers
B)small,local businesses
C)chain retailers
D)food distributors
E)clothing manufacturers

Question 35

All of the following are types of industrial structures EXCEPT?

A)subsistence economies
B)marketing economies
C)raw material exporting economies
D)industrial economies
E)industrializing economies

Question 36

Firms that play it safe and do not enter the global market are likely to lose their chances to enter other markets .

A)but protect themselves from competition at home
B)but gain a competitive edge against imports in their home markets
C)and risk losing their home markets
D)but successfully shield themselves from foreign competition
E)A and B

Question 37

"Take the product as is and find customers for it" is the slogan for .

A)product invention
B)straight product extension
C)product adaptation
D)product strategy
E)adapted marketing

Question 38

Which of the following is designed to help foster trade between nations?

A)GATT
B)quotas
C)tariffs
D)nontariff trade barriers
E)exchange controls

Question 39

means adjusting the marketing strategy and mix elements to each international target market.

A)Global marketing mixing
B)Standardized global marketing
C)Whole channel viewing
D)Communication adaptation
E)Adapted global marketing

Question 40

In a(n)economy,fast growth in manufacturing results in rapid overall economic growth.This type of economy typically has a new rich class and a small but growing middle class,both demanding new types of imported goods.

A)agrarian
B)materials exporting
C)industrial
D)subsistence
E)industrializing

Question 41

It is important to understand how business norms vary from county to country.For example, like to sit or stand very close to each other when they talk business-in fact,almost nose- to- nose.

A)South Americans
B)Europeans
C)Americans
D)Japanese
E)Africans

Question 42

Industrializing economies do NOT include .

A)Sweden
B)Brazil
C)China
D)India
E)any of the above

Question 43

Economic communities are also known as .

A)free trade zones
B)production communities
C)management communities
D)open channels
E)global firms

Question 44

All of the following are political- legal factors that should be considered when deciding whether to do business in a given country EXCEPT which one?

A)monetary regulations
B)political stability
C)government bureaucracy
D)business norms
E)attitudes toward international buying

Question 45

A firm normally gets into international marketing by simply shipping out its goods.If its international sales expand,the company organizes a(n).

A)international division
B)standardized global marketing strategy
C)export department
D)joint ownership
E)indirect exporting venture

Question 46

involves entering a foreign market by developing foreign- based assembly or manufacturing facilities.

A)Joint venturing
B)Direct investment
C)Exporting
D)Direct exporting
E)Contract manufacturing

Question 47

When entering a foreign market,companies typically start with ,working through independent intermediaries to sell products produced in the home country.

A)embargo
B)licensing
C)product adaptation
D)direct exporting
E)indirect exporting

Question 48

All of the following are strategies for adapting product and marketing communications to a global market EXCEPT which one?

A)straight extension
B)product invention
C)product adaptation
D)external extension
E)communication adaptation

Question 49

To maximize the toothpaste market in China,Crest needs to convince more of the Chinese population to brush their teeth.Which of the following would Crest be most likely to use to accomplish this?

A)product invention
B)product adaptation
C)communication adaptation
D)standardized global marketing
E)straight product extension

Question 50

In international trade,it is ideal if the buyer can pay in _ .

A)the seller's currency
B)countertrade
C)barter
D)buyback
E)counterpurchases

Question 51

Which of the following is an advantage created by the adoption of the euro?

A)European countries with previously weak currencies are more attractive markets.
B)It is the last step necessary for the countries of Europe to act like a single entity.
C)A homogeneous European market has been created.
D)Countries outside of Europe no longer face trade obstacles within Europe.
E)It has decreased the annual combined GDP.

Question 52

Sellers may eventually move into ,whereby they handle their own exports.The investment and risk are somewhat greater in this strategy.

A)embargo
B)direct exporting
C)indirect exporting
D)licensing
E)product adaptation

Question 53

Of the following,a company should make which major decision about international marketing first?

A)deciding on the global marketing organization
B)deciding which markets to enter
C)deciding on the global communication program
D)deciding how to enter the market
E)deciding on the global marketing program

Question 54

All of the following are types of joint ventures EXCEPT .

A)direct investment
B)licensing
C)contract manufacturing
D)management contracting
E)joint ownership

Question 55

The European Union and NAFTA (North American Free Trade Agreement)are examples of .

A)economic communities
B)barter organizations
C)world trade organizations
D)open economic areas
E)non- barrier zones

Question 56

Sears opened up department stores in Mexico and Spain,where it found qualified local manufacturers to produce many of the product it sells.This type of joint venture is known as .

A)licensing
B)contract manufacturing
C)indirect exporting
D)management contracting
E)joint ownership

Question 57

India needs more imports of raw materials such as textiles,steel,and heavy machinery and fewer imports of finished textiles,paper products,and automobiles.India is most likely a(n)_ economy.

A)subsistence
B)emerging
C)raw material exporting
D)industrializing
E)agrarian

Question 58

The first link between the seller and the final buyer,move company products from points of production to the borders of countries within which they are sold.

A)channels between nations
B)large- scale channels
C)global value deliveries
D)whole- channel views
E)channels within nations

Question 59

A(n)serves to limit the amount of foreign exchange and the exchange rate against other currencies.

A)tariff trade barrier
B)trade system
C)exchange control
D)tariff
E)quota

Question 60

The simplest way to enter a foreign market is through .

A)direct investment
B)joint venturing
C)joint ownership
D)exporting
E)contract manufacturing

Question 61

industries are safe from foreign competition.

A)Major
B)NAFTA
C)Few
D)European Union
E)Most

Question 62

A(n)_ is a tax levied by a foreign government against certain imported products.

A)export
B)quota
C)tariff
D)embargo
E)exchange control

Question 63

A Chinese New Year television ad features a dragon in a holiday parade,adorned with red Coke cans.The spot concludes,"For many centuries,the color red has been the color for good luck and prosperity.Who are we to argue with ancient wisdom?" This is an example of .

A)product invention
B)product adaptation
C)straight product extension
D)communication adaptation
E)joint venturing

Question 64

Which of the following reduced the world's merchandise tariffs by 30 percent,toughened international protection of copyrights and trademarks,and has been extended to cover trade in agriculture and a wide range of services?

A)GATT
B)FTAA
C)NAFTA
D)EU
E)CAFTA

Question 65

Demographic characteristics,geographic characteristics,economic factors,sociocultural factors,and political and legal factors all help a company _ _.

A)determine a country's degree of globalization
B)evaluate its value delivery network
C)identify potential joint ventures
D)determine a market's potential
E)evaluate its marketing objectives

Question 66

A(n)economy is poor in some ways but rich in one or more natural resources responsible for creating most of its exporting revenue.

A)subsistence
B)agrarian
C)raw- material exporting
D)industrializing
E)industrial

Question 67

Azerbaijan imported wheat from Romania in exchange for crude oil and Vietnam exchanged rice for Philippine fertilizer and coconuts.Both scenarios are examples of which of the following?

A)compensation
B)blocked currency
C)buyback
D)cash transaction
E)barter

Question 68

As global trade is growing,global competition is _ .

A)stabilizing
B)leveling off
C)erratic
D)intensifying
E)declining

Question 69

The two key economic factors reflecting a country's attractiveness as a market are its industrial structure and its _.

A)transportation systems
B)nontariff trade barriers
C)income distribution
D)exchange controls
E)communication adaptation

Question 70

Which of the following is true regarding economic communities?

A)NAFTA was modeled after CAFTA- DR.
B)CAFTA- DR represents the world's single largest market.
C)Converting numerous currencies into the euro has been a failure.
D)Trade barriers have increased between the United States and Mexico since NAFTA was created.
E)Tariffs are typically lower or nonexistent between countries in the community than between countries not in the community.

Question 71

In a(n),the vast majority of people engage in simple agriculture and consume most of their output.

A)emerging economy
B)subsistence economy
C)raw material economy
D)industrial economy
E)industrializing economy

Question 72

Regardless of how companies go about pricing their products,their foreign prices will probably be their domestic prices.

A)competitive with
B)the same as
C)not comparable with
D)lower than
E)higher than

Question 73

Kellogg ads in the United States promote the taste and nutrition of Kellogg's cereals versus competitors' brands.In France,where consumers drink little milk and eat little for breakfast,Kellogg's ads must convince consumers that cereals are a tasty and healthful breakfast.Kellogg is following what type of marketing strategy?

A)straight communication extension
B)straight product extension
C)communication adaptation
D)product adaptation
E)product invention

Question 74

All of the following are major decisions a company faces in international marketing EXCEPT which one?

A)deciding which markets to enter
B)deciding on the global marketing program
C)deciding how to set standardized prices
D)deciding on the global marketing organization
E)deciding how to enter the market

Question 75

Trusted Wholesalers is a company that currently purchases products produced in Mexico and sells them to companies based in the United States and Canada.Trusted Wholesalers is considering whether to also purchase products produced in Costa Rica and the Dominican Republic.To make their decision,members of management at Trusted Wholesalers will most likely closely evaluate the agreements made by .

A)UNASUR
B)the EU
C)NAFTA
D)MCAN
E)CAFTA- DR

Question 76

Which of the following economic communities is responsible for the adoption of the euro?

A)WTO
B)European Union
C)CAFTA
D)Euro- American Union
E)NAFTA

Question 77

Which of the following is a sociocultural factor that a company should consider before deciding to enter an international market?

A)consumer lifestyles,beliefs,and values
B)income distribution
C)political stability
D)population density
E)education

Question 78

Members of management at Growing Green,a company that markets organic and environmentally friendly gardening and landscaping supplies and equipment,are evaluating the benefits and disadvantages of indirect exporting,direct exporting,and licensing.In which stage of the international marketing process is Growing Green?

A)deciding on the global marketing program
B)deciding how to enter the market
C)deciding which markets to enter
D)deciding on the global marketing organization
E)deciding whether to go global

Question 79

Sony found that Japanese commuters had difficulty using standard laptops on crowded rush- hour trains since standing commuters have no laps.So Sony created the U as a "standing computer." The U includes a touch screen and small keyboard that can be used while standing or on the move.This is an example of .

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

Question 80

The two major links between the seller and the final buyer-channels between nations and channels within nations-make up a .

A)transportation network
B)direct- distribution channel
C)global value delivery
D)large- scale channel
E)whole- channel view