Deck 8: Global Marketing

Question 1

Colin wants information about the infrastructure in the countries his company is planning to export to, so he should gather information about the transportation and communications capabilities in each country.

Answer 1

True

Question 2

A quota is a tax levied on imported goods.

Answer 2

False

Question 3

Direct investment offers the firm complete control over its operations in the foreign country.

Answer 3

True

Question 4

A trade surplus indicates a higher level of imports than exports.

Question 5

Glocalization refers to a global marketing strategy in which each of the four Ps is customized for each country.

Question 6

Companies that engage in global marketing must continually monitor economic and social trends to protect their position within the market and adjust products and marketing strategies to meet the changing needs of global markets.

Question 7

Global expansion often begins when a firm receives an order for its product from another country.

Question 8

Brazil is characterized by strong upper and lower classes, but the middle class has diminished in size in recent years.

Question 9

India is one of the fastest-growing markets and has one of the youngest populations in the world.

Question 10

There is only one global product strategy: to sell a product or service similar to that sold in the home country but with minor adaptations.

Question 11

The greater the wealth a country's citizens, generally implies that a firm will have better opportunities in that particular country.

Question 12

A franchise agreement refers to collaborative relationships between independent firms that do not invest in one another.

Question 13

The BRIC countries are Bolivia, Russia, Italy, and China.

Question 14

Tariffs and quotas do not have an affect on pricing strategies because these are government-instituted policies.

Question 15

Russia lags behind most European countries in use of the Internet.

Question 16

Tariffs are intended to make imported goods less expensive and thus less competitive with domestic products.

Question 17

Increasing liberalization in the Chinese economy has prompted a large improvement in the country's Global Retail Development Index (GRDI).

Question 18

Firms would prefer to manufacture in a country that has a trade surplus, or a higher level of exports than imports.

Question 19

Exporting refers to when a company maintains ownership of its plants, operational facilities, and offices in a foreign country in which it sells its products.

Question 20

In a joint venture, the burden of ownership, control, and profits falls on the market entry firm.

Question 21

The Big Mac Index is a novel measure of

A)GDP.
B)purchasing power parity.
C)per capita GNI.
D)economic growth.
E)international trade surplus.

Question 22

According to purchasing power parity theory, if ________ is(are)in equilibrium, products will cost the same in each country.

A)imports and exports
B)consumer spending
C)interest rates
D)domestic products
E)exchange rates

Question 23

Fran is gathering information about the general economic environment in Amsterdam. In doing so, he will look for information about the general economic environment, market size and population growth rate, and

A)culture.
B)real income.
C)airport capabilities.
D)political status.
E)religious institutions.

Question 24

Global distribution networks that involve middlemen, exporters, importers, and different transportation systems generally lower costs and prices for products.

Question 25

The most typical method companies use to introduce a product outside of the home country is to adapt the product to local needs before presenting it to the marketplace.

Question 26

Firms with global appeal can run global advertising campaigns and simply translate the wording in the advertisements and product labeling.

Question 27

Gross national income consists of GDP

A)minus net consumer spending.
B)plus government spending on international trade.
C)minus purchasing power parity.
D)plus the net income earned from investments abroad.
E)plus gross domestic international investment.

Question 28

A consumer products company produces inexpensive goods in underdeveloped markets, then repackages them as cost-effective innovations for Western buyers. This is an example of glocalization.

Question 29

A company's communication strategy is one of the easiest things to adapt in the global marketplace.

Question 30

When considering global marketing opportunities in Bangladesh, Mari asked the question, "Can the roads support the semitrucks we use to transport our products?" Mari is concerned about ________ capabilities in Bangladesh.

A)production capacity
B)pricing
C)advertising
D)infrastructure
E)manufacturing

Question 31

Jorge is working on a global marketing assessment team looking well into the future to determine the most attractive market areas around the world. He is evaluating market sizes and growth rates. Based on population growth rates in different regions, he should consider that

A)countries with high purchasing power today may not continue to show the same growth in the future.
B)the United States and Western Europe will have dramatic increases in population growth leading to overcrowding.
C)the middle class in India will continue to shrink as the rich get richer and the poor get poorer.
D)in places like India, urban population centers will become increasing unattractive and the rural areas will experience major growth in population.
E)the global population is expected to grow at staggering rates indefinitely.

Question 32

Today, many developed countries are experiencing ________ population growth.

A)slight
B)zero or negative
C)rapid
D)moderate
E)significant

Question 33

In an effort to stimulate economic development in Africa, the Gates Foundation announced it would provide cellular phones to farmer cooperatives. The Gates Foundation recognized that problems in ________ exist in many African markets' infrastructure.

A)transportation
B)communication
C)distribution
D)commerce
E)population

Question 34

GDP is defined as

A)the value of a country's exports minus its imports.
B)the difference between two country's exchange rates.
C)the market value of goods and services produced in a country in a year.
D)national income minus national taxes.
E)the gross purchasing power of domestic goods and services plus international income.

Question 35

To determine the market potential for its product or service, a firm should use

A)GDP data.
B)unemployment data.
C)purchasing power parity data.
D)inflation data.
E)as many metrics as it can obtain.

Question 36

Economic measures like GDP and GNI do not fully account for a country's economic health because they measure only

A)material output.
B)international trade.
C)global expectations.
D)purchasing power parity.
E)poverty potential.

Question 37

Patterson Electronics is considering entering the global marketplace. Sophie's job is to assess the market size and population growth of four European nations. Which aspect of a country market assessment is Sophie responsible for?

A)economic analysis
B)infrastructure and technological analysis
C)analysis of government actions
D)sociocultural analysis
E)geographic analysis

Question 38

Manufacturers would prefer to produce in a country with a trade ________, because it signals a greater opportunity to export products to more markets.

A)surplus
B)deficit
C)discrepancy
D)bonus
E)balance

Question 39

How has the population shift from rural to urban areas in India impacted the supply chain?

A)It has decreased the supply chain's carbon footprint and reduced pollution throughout.
B)It has reduced the number of hands that products must pass through to reach the rural populations.
C)It has increased the human development index.
D)It has increased competition for intellectual capital.
E)It has increased nonmaterial GDP output.

Question 40

The most common measure of market potential of an economy is a country's

A)GNI.
B)GDP.
C)PPP.
D)CPI.
E)APR.

Question 41

When shopping for a car you notice a significant price gap between domestic and imported cars, with the imported cars being much more expensive. This could be the result of

A)a tariff.
B)a boycott.
C)overseas consolidation.
D)globalization.
E)franchising.

Question 42

According to Hofstede's cultural dimensions concept, which BRIC country posts high scores in the dimension of power distance?

A)Brazil
B)Russia
C)India
D)China
E)United Kingdom

Question 43

Nate used to work in the United States, but recently took a new job in Europe. At his old job, he always felt pressured to get deals done quickly but in his new job his manager expects deals to take longer and wants Nate to take his time and do the job right. Which of Hofstede's cultural dimensions is having an effect on Nate?

A)individualism
B)power distance
C)indulgence
D)masculinity
E)time orientation

Question 44

When the value of the dollar declines in relation to other currencies, it benefits U.S. marketers who

A)export goods to other countries.
B)import goods from other countries.
C)engage in countertrade.
D)enforce import quotas.
E)outsource labor.

Question 45

Olivia's Oil Supply has to pay a ten-cent tax on each bottle of olive oil it imports from Italy. This tax is an example of a

A)subsidy.
B)bloc.
C)tariff.
D)recall.
E)quota.

Question 46

Marketers contemplating operations and trade with a specific country must consider whether the country belongs to a trading bloc. A trading bloc is a group of countries that have

A)established a formal agreement to manage trade activities.
B)agreed to use the same currency.
C)similar consumer purchasing patterns.
D)been segmented according to their geographic proximity.
E)been segmented based on shared cultural values.

Question 47

Moriah has been assessing the cultural dimensions of a nation in Europe to see if it fits with her company's line of water sports products. She reports to the management team that she doesn't feel the market is a good fit because the culture focuses on success in business and doesn't advocate for the gratification of enjoyment. Which of Hofstede's dimensions is affecting Moriah's decision?

A)masculinity
B)uncertainty avoidance
C)power distance
D)time orientation
E)indulgence

Question 48

Allyson is determining what went gone wrong with the campaign she planned in Latin America for her company's product. She narrowed down the issues to sociocultural factors, which would include

A)product uses and currency rates.
B)trade agreements and trading blocs.
C)potential tariffs and quotas.
D)visible artifacts and underlying values.
E)population distribution and logistics.

Question 49

In most cases, countries use tariffs to reduce foreign competition, but tariffs are also used

A)to shorten supply chains.
B)as a response to perceived unfair trade practices.
C)to offer domestic discounts to large businesses.
D)to stimulate consumer demand.
E)to equalize quotas.

Question 50

Neal is on a business trip to Brazil. His company is considering this market and it is his job to get a grasp on the symbols and ceremonies common to Brazil. What aspect of Brazil's culture is Neal assessing?

A)underlying values
B)visible artifacts
C)assumptions
D)opinions and beliefs
E)purchasing parity

Question 51

Geert Hofstede's cultural dimensions concept focuses on five dimensions of ________ in a country.

A)symbols
B)underlying values
C)buying patterns
D)personality
E)visible artifacts

Question 52

The United States imports more goods from China than it exports to China. This is known as

A)gross national income (GNI).
B)a trade surplus.
C)gross domestic product (GDP).
D)a trade deficit.
E)an import imbalance.

Question 53

When Connor evaluated the commercial infrastructure in Mauritius, a small island in East Africa, he considered its

A)population control measures.
B)legal, banking, and regulatory systems.
C)retailing capabilities.
D)per capita income estimates.
E)climate and culture.

Question 54

A ________ limits the quantity of imported merchandise, thus minimizing competition faced by domestic products.

A)tariff
B)duty
C)trading bloc
D)trade agreement
E)quota

Question 55

When the U.S. government determined the prices of solar panels imported from China were artificially low due to illegal subsidies, it imposed a ________ to help domestic firms compete.

A)comparative inflation rate
B)countertrade exchange
C)quota
D)tariff
E)currency exchange rate

Question 56

Which of these trade agreements represents the highest level of integration among participating nations?

A)NAFTA
B)EU
C)GNI
D)ASEAN
E)CAFTA

Question 57

In some areas of the world there are large, impoverished populations that need goods and services but cannot afford to pay the prices that wealthier consumers in developed countries can. The area of the market representing the poorer populations is known as

A)exchange controls.
B)parity purchasers.
C)bottom of the pyramid.
D)a trading bloc.
E)glocalization.

Question 58

Tariffs protect domestic producers by

A)making imported products more expensive.
B)increasing brand recognition.
C)reducing the cost of production.
D)offering subsidies to exports.
E)avoiding regulation.

Question 59

The marketers of an investment firm just developed a promotional campaign for a new financial service. In a print ad intended for its Chinese market, a representative from the firm is shown shaking hands with an Asian customer-a symbol that a business relationship based on trust and honor has been established. To convey this same message to its U.S. market, the U.S. print ad features a customer in an office formally signing a contract. Which of Hofstede's cultural dimensions accounts for the difference in the two ads?

A)power distance
B)indulgence
C)time orientation
D)uncertainty avoidance
E)individualism

Question 60

Why should marketers be aware of the BRIC countries?

A)They are a microcosm of the rest of the world.
B)They represent almost half the world's population.
C)They are likely to be the source of most market growth.
D)They have had the most dramatic changes in culture and consumer buying patterns.
E)They have stable population growth, which makes them easier to study.

Question 61

What do the BRIC countries have in common?

A)They participate together in a trading bloc.
B)They have suffered more than most other countries in the recent recession.
C)They are Asian countries experiencing explosive population growth.
D)They are the four countries experiencing the lowest levels of economic growth.
E)They are experiencing significant levels of economic growth.

Question 62

What global entry strategy should Bistro Bakery Supply use if it wants to have the least financial risk?

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

Question 63

Which country has embraced market-oriented economic development despite maintaining communist political ideals?

A)Brazil
B)Russia
C)Iran
D)China
E)Afghanistan

Question 64

What is currently a negative factor to keep in mind when considering foreign investment in Russia?

A)The Russian population is poorly educated.
B)Russian consumers have little interest in online shopping.
C)Russia is known for corruption, creating ethical dilemmas for firms.
D)Russian consumer markets are saturated, offering few opportunities for goods from U.S. companies to sell well.
E)Few Russians have access to the Internet due to heavy regulation.

Question 65

A U.S. company is analyzing its business prospects in Brazil.What statement would be accurate regarding this country?

A)Brazil, a democracy, welcomes foreign investors.
B)Censorship issues in Brazil are highly complex.
C)Brazil is currently the world's fifth-largest economy.
D)The relations between the United States and Brazil are complicated due to the fall of Brazil's economy.
E)Brazil holds the status of one of the slowest developing economies in the world.

Question 66

Which country is Europe's largest Internet market, with Internet users growing at a rate of 10 percent annually?

A)Great Britain
B)Spain
C)France
D)Germany
E)Russia

Question 67

What is currently a negative factor related to foreign investment in India?

A)India's population is fairly old and aging fast.
B)India's retail environment lacks modern supply chain management facilities and systems.
C)India prevents foreign investors from entering into joint ventures.
D)India has no shopping malls or other large commercial centers.
E)India lacks a skilled workforce.

Question 68

Morgan is assessing global entry strategies for her organic yogurt shops. She does not want to take a lot of risk and is willing to limit her control of international stores. Morgan will most likely use a(n)________ strategy.

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

Question 69

When entering a foreign market, the least risky strategy is

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

Question 70

Which country has a rapidly aging population due to its one-child policy?

A)Brazil
B)Russia
C)India
D)China
E)Japan

Question 71

Global expansion often begins with

A)franchising.
B)exporting of goods.
C)joint ventures.
D)direct investment.
E)strategic alliances.

Question 72

A publishing company plans to outsource its production-related tasks to a BRIC country. They are assessing opportunities and are attracted to this country due to its population of young, well-educated, technically-skilled workers who are fluent in English.

A)Russia
B)China
C)Brazil
D)India
E)Chile

Question 73

Many of the best-known American retailers, like Starbucks and McDonald's, have contractual agreements with another firm or individuals, allowing its businesses to operate overseas. These companies expanded globally using

A)franchising.
B)exporting.
C)joint ventures.
D)direct investment.
E)strategic alliances.

Question 74

Which statement about India's population is true?

A)With a median age of 61, India has one of the oldest populations in the world.
B)India's young people mostly live in rural areas in large families.
C)India's workforce is highly skilled, particularly in technical fields.
D)India claims more than 25 percent of the world's population.
E)Most Indian citizens shop in large retail outlets.

Question 75

What has been the state of the Russian economy since the fall of the former Soviet Union?

A)It has been on the rise at double the rate of other nations.
B)The country has experienced an overall increase in employment levels since that time.
C)The economy has remained stable throughout this time.
D)It has experienced multiple upturns and downturns.
E)The country is in a race with China for the most dominant economy in the world.

Question 76

Which of the following statements is true with regard to growth in global markets?

A)A country's infrastructure does not impact growth in the global market.
B)The number of Russian Internet users is decreasing at a rate of 10 percent annually.
C)Russia's population is expected to increase by one-third in the next half century.
D)Changes in technology, especially communications, have been a driving force for growth in global markets for decades.
E)Brazil does not welcome foreign investors.

Question 77

A company is assessing opportunities in the BRIC companies and determines that ________ is one of the youngest populations in the world and is increasingly adopting global attitudes.

A)Russia
B)Brazil
C)India
D)Italy
E)China

Question 78

What is a potential negative factor for foreign investment in China?

A)China's population is aging and is likely to continue to do so for many years.
B)China drastically restricts the goods it allows U.S. companies to export to China.
C)China's standard of living has dropped over the past 30 years.
D)China has imported fewer goods from the United States each year for the past decade.
E)Chinese consumers are not interested in purchasing products from the United States.

Question 79

Domestic firms developing a global entry strategy might consider franchising. Before deciding on franchising as a strategy however, firms must understand the disadvantages. What is a disadvantage of franchising?

A)the franchisor has limited control over the market operations in the foreign country
B)the franchisee must sign a non-compete agreement
C)there are higher tariffs associated with franchise operations
D)franchising is the riskiest way to enter a foreign market
E)franchises are not responsible for the quality of products produced

Question 80

A U.S. firm is analyzing its business prospects in China. Marketing executives understand what to be true of this potential market?

A)China's leadership, which maintains communist political ideals, has rejected market-oriented economic development.
B)Recent developments in China have led to dramatically decreased living standards and levels of personal freedom.
C)China maintains a thriving retail market, despite the slowing growth of its gross domestic product.
D)China's economy has recently seen a substantial decrease in its Global Retail Development Index (GRDI).
E)China's population has been aging due to its one-child policy but this is not expected to have a significant impact on its economy.