Deck 8: Reaching Global Markets

Question 1

Approximately ____ of the world's purchasing power is outside of the United States.

A)1/10
B)1/3
C)2/3
D)1/2
E)9/10

Answer 1

C

Question 2

In what ways can a nation restrict the flow of imported goods?

Answer 2

Answer not provided.

Question 3

If Tasmania levied a duty on all goods purchased from the United States and other countries outside its borders that were brought into Tasmania, its businesses and citizens would be paying a(n)

A)embargo.
B)import tariff.
C)travelers' tax.
D)export tax.
E)foreign duty.

Answer 3

B

Question 4

If Germany, in an attempt to bolster the sales of its own auto manufacturers, decided to limit the number of automobiles that could be brought in from other countries, Germany would be using a(n)

A)embargo.
B)boycott.
C)exchange control.
D)import tariff.
E)quota.

Question 5

Which of the following is often used to raise revenue for a country and/or to protect domestic products?

A)Quota
B)Warning label
C)Embargo
D)Import tariff
E)Exchange control

Question 6

What effect is NAFTA having on the international trade of the following countries: United States, Canada, Mexico, and Japan?

Question 7

What marketing and ethical problems can bribes create in international marketing transactions?

Question 8

International marketing refers to ____________________.

Question 9

Describe the difficulties encountered in standardizing the marketing mix globally.

Question 10

What effects are technological forces having on international marketing? What opportunities exist in the global marketplace that marketers can exploit with regard to technology?

Question 11

The environmental forces that affect foreign markets may differ dramatically from those affecting domestic markets. This makes a careful ____ a critical part of a successful international marketing strategy.

A)background check
B)regulatory analysis
C)social audit
D)environmental analysis
E)marketing statement analysis

Question 12

How do globalized marketing strategies differ from customized marketing strategies? What are the implications of each for marketing managers?

Question 13

Before the 1990s, most firms entered international markets

A)globally and quickly.
B)incrementally and slowly.
C)incrementally and quickly.
D)domestically and slowly.
E)regionally and quickly.

Question 14

Describe the cultural and social forces that affect international marketing strategy.

Question 15

Differences in standards of living, credit, buying power, and income distribution are all examples of ____ forces that must be considered in international marketing efforts.

A)economic
B)cultural
C)ethical
D)technological
E)legal

Question 16

Explain why the mode of entry into an international market is a major issue for managers to consider.

Question 17

Describe how economic and technological forces affect marketing strategies.

Question 18

In China, the price of imported Scotch is $30 per glass as opposed to Scotch from China which is $3. Which of the following do you think accounts for the difference in price?

A)Exchange control
B)Balance of trade
C)Import tariff
D)Embargo
E)Export tariff

Question 19

In what ways can businesses become involved in international marketing activities?

Question 20

According to your text, ____ are small technology-based firms operating in international markets within two years of their establishment and realizing as much as 70 percent of their sales outside the domestic home market.

A)"natural globals"
B)"multinational corporations"
C)"born globals"
D)"born multinationals"
E)"multinational enterprises"

Question 21

Which of the following is used to help maintain a more favorable balance of trade by a country?

A)Limiting imports
B)Limiting exports
C)Establishing exchange controls
D)Increasing gross domestic product
E)Changing political systems

Question 22

The United States' prohibition against importing cigars from Cuba is an example of a(n)

A)health control.
B)quota.
C)embargo.
D)exchange control.
E)import control.

Question 23

The Mont Blanc Company plans to export expensive consumer gift items to Germany. The best overall economic measure of market potential would be Germany's

A)gross domestic product.
B)gross domestic product per capita.
C)gross national product.
D)balance of trade.
E)unemployment rate.

Question 24

In many developing countries around the world, technology is enabling opportunities to "leapfrog" existing technology. What does this mean?

A)These countries are able to forgo current technological advances in order to wait for even better technology to be developed.
B)More advanced technology is reaching these countries even though they lack technological infrastructures.
C)Technological advances are often offered at prices considerably lower than in well-developed countries.
D)The technology in developing countries is rapidly surpassing the technology in well-developed countries.
E)The existing technological infrastructures in these countries are rapidly being replaced by newer, more advanced technology.

Question 25

Marketers of computer software, music CDs, and books are particularly affected by cultural differences in

A)socioeconomic status of citizens.
B)advances in technology.
C)differences in cross-cultural exchange behavior.
D)ethical codes of conduct for businesses.
E)standards regarding intellectual property.

Question 26

When a glove manufacturer in China is allowed to sell only a certain number of plastic gloves into Japan, that firm is facing a(n)

A)tariff.
B)embargo.
C)restrictive product standard.
D)quota.
E)balance of trade restriction.

Question 27

____ can force businesspeople to buy and sell foreign products through a central agency, such as a central bank.

A)Embargoes
B)Export tariffs
C)Quotas
D)Import tariffs
E)Exchange controls

Question 28

The gross domestic product is

A)a measure of the profit made by all firms in a nation.
B)the average annual earnings per person in a nation.
C)a measure of the types of products produced by a nation.
D)an overall measure of a nation's economic standing.
E)a ratio of domestic products to products produced in foreign countries.

Question 29

The ____ is the difference in value between a nation's exports and its imports.

A)net trade value
B)export/import ratio
C)gross domestic product
D)balance of payments
E)balance of trade

Question 30

Special interest groups and regulatory bodies are ____ forces that must be taken into account in international marketing.

A)socioeconomic
B)technological
C)economic
D)social and ethical
E)political and legal

Question 31

Government restrictions on the amount of a particular country's currency that can be bought or sold are known as

A)embargoes.
B)quotas.
C)exchange controls.
D)import controls.
E)balance of trade controls.

Question 32

The country with the highest GDP is

A)Japan.
B)the United Kingdom.
C)Brazil.
D)the United States.
E)China.

Question 33

Caterpillar would like to better understand factors that would affect its ability to market construction equipment in various countries. Which of the following forces determine how trade barriers affect Caterpillar's marketing efforts?

A)Political and legal
B)Interpersonal
C)Social
D)Technological
E)Industrial

Question 34

The Foreign Corrupt Practices Act of 1977 makes it illegal for U.S. firms to

A)attempt to make large payments or bribes to influence policy decisions of foreign governments.
B)offer foreign businesses any type of incentive for purchasing their company's products and services.
C)change their ethical standards when dealing with foreign firms.
D)give even small tips or gifts in countries where such gifts are customary business practices.
E)introduce any type of corruption into foreign businesses that have higher ethical standards than those of the U.S. firm.

Question 35

When products are introduced into one nation from another, acceptance is far more likely

A)if prices are set very low.
B)when bribes are paid to local officials to aid distribution.
C)if there are similarities between the two cultures.
D)if packaging is adjusted to match local preferences.
E)when retailers are given incentives to push the products.

Question 36

If a certain country considered handshakes in business transactions to be taboo and preferred to use nodding, this would be an example of differences in ____ forces.

A)cultural
B)political
C)economic
D)technological
E)regulatory

Question 37

A limit on the amount of goods an importing country will accept for certain product categories during a specified time period is called a(n)

A)exchange control limit.
B)embargo.
C)quota.
D)import tariff.
E)balance limit.

Question 38

Many companies choose to standardize their ____ across national boundaries to maintain a consistent and well-integrated corporate culture.

A)technology
B)ethical behavior
C)language
D)dress code
E)products

Question 39

In considering the viability of potential international markets for Pepsi products, PepsiCo is advised to take into account ____, which provides insight into market potential.

A)per capita gross domestic product
B)gross domestic product
C)the quantity of exports
D)the quantity of imports
E)total consumer income

Question 40

Select the true statement.

A)Legislation regulating marketing in many foreign countries is being eased.
B)A government's attitude toward cooperation with importers has little impact on marketing to that country.
C)Refusing to give payoffs and bribes in some foreign countries may put a marketer at a competitive disadvantage.
D)Bribes and payoffs are considered unethical in all countries and cultures.
E)Bribes and payoffs are supported by U.S. trade policies under certain conditions.

Question 41

Which of the following trade alliances differs from others in its commitment to facilitating business and its practice of allowing the private sector to participate in a wide range of activities?

A)NAFTA
B)EU
C)MERCOSUR
D)WTO
E)APEC

Question 42

Which of the following is true about NAFTA?

A)It remains politically controversial.
B)It will increase the total output of goods and services to foreign markets.
C)It will decrease the total number of jobs in the United States.
D)It eliminated all tariffs on goods traded between the United States, Canada, and Mexico.
E)It will reduce the number of illegal aliens in the United States.

Question 43

The unconscious reference to one's own cultural values, experiences, and knowledge when encountering new and different cultures is known as

A)the "when-in-Rome" approach.
B)the Fraedrich Principle.
C)cultural relativism.
D)the self-reference principle.
E)the self-reference criterion.

Question 44

If a newly formed country wanted to increase its international trade and reduce worldwide tariffs, it would most likely try to become a part of

A)NAFTA.
B)WTO.
C)MERCOSUR.
D)APEC.
E)EU.

Question 45

Which of the following alliances/agreements is the United States not a part of?

A)NAFTA
B)APEC
C)GATT
D)WTO
E)MERCOSUR

Question 46

Maquiladoras are

A)exchange controls from central banks in Latin American countries.
B)production facilities in north-central Mexican states.
C)import-export agents of the Mexican government.
D)global marketing programs established in Latin American countries.
E)freight forwarders from Mexico.

Question 47

Many marketers claim that ____ will become the world's largest market.

A)Japan
B)the United States
C)China
D)Thailand
E)India

Question 48

Johnston Chemicals' president is very excited about the possibility of the firm's British subsidiary having access to customers in the entire EU. He realizes that it will be some time before this area truly becomes one market, primarily because of differences in which of the following?

A)Available advertising media
B)Cultural factors
C)Legal challenges
D)Technological advances
E)Economic environmental factors

Question 49

Walmart is currently expanding its stores into Canada and Mexico. This expansion is being facilitated by the

A)European Union.
B)North American Free Trade Agreement.
C)Pacific Rim Unification Act.
D)International Retail Alliance Association.
E)Latin American Free Trade Association.

Question 50

The trade alliance that includes Brazil, Argentina, Chile, and other countries is known as

A)OPEC.
B)APEC.
C)MERCOSUR.
D)NAFTA.
E)the Common Market.

Question 51

The Common Market of the Southern Cone (MERCOSUR) includes countries from

A)Africa.
B)Asia.
C)Central America.
D)South America.
E)the Pacific Islands.

Question 52

The exchange rates of several European countries are linked together to a common currency, the

A)lira.
B)euro.
C)dollar.
D)peso.
E)ropea.

Question 53

____ refers to the idea that morality varies from one culture to another and that business practices are therefore differentially defined as right or wrong by particular cultures.

A)The self-reference criterion
B)Global ethics
C)Economic relativism
D)Cultural relativism
E)Moral relativism

Question 54

Which of the following is not true of NAFTA?

A)The agreement has a long adjustment phase-in time period.
B)Increased competition should lead to a more efficient market.
C)It will provide additional opportunities for the United States in long-term affiliations with other countries in the Western hemisphere.
D)It is controversial.
E)Business licensing requirements have been increased.

Question 55

The unification of Europe through the European Union (EU)

A)produced the largest single market in the world.
B)calls for greater customization of products and attention to regulations and restrictions of European countries.
C)means that members of the EU have become more heterogeneous in their needs and wants.
D)required the countries to be segmented into many different markets.
E)permits virtually free trade among the member nations of the EU.

Question 56

One of the effects of NAFTA is the simplification of country-of-origin rules. This will likely hinder the international trade activities of

A)Canada.
B)Japan.
C)Brazil.
D)Cuba.
E)Panama.

Question 57

Which of the following countries has made the greatest inroads into other world markets?

A)Indonesia
B)Philippines
C)Malaysia
D)Japan
E)China

Question 58

Another name for the European Union is

A)the Common Market.
B)the European Market.
C)the Euro.
D)NAFTA.
E)AECO.

Question 59

Which of the following agreements provides a forum for tariff negotiations, reducing trade restrictions, resolution of international trade problems, and ground rules for international trade?

A)The World Trade Organization
B)The North American Free Trade Agreement
C)The Latin American Free Trade Agreement
D)The European Union Free Trade Agreement
E)The General Agreement on Tariffs and Trade

Question 60

The agreement between the United States, Canada, and Mexico that merges these three countries into one marketplace is called

A)EU.
B)MERCOSUR.
C)APEC.
D)NAFTA.
E)GATT.

Question 61

A large farming cooperative that focuses on the production of fruits and vegetables uses a business that sells the farmers' products in foreign countries and also provides consulting, insurance, legal assistance, and warehousing to the cooperative. This business would most likely be called a(n)

A)trading company.
B)export specialist.
C)contract wholesaler.
D)licensor.
E)strategic partner.

Question 62

The extent of Raytheon's participation in global business is selling the batteries it manufactures to companies in Spain. In this case, Raytheon is a(n)

A)trading company.
B)importer.
C)exporter.
D)franchiser.
E)contract manufacturer.

Question 63

How does using an exporting intermediary limit the risk involved with global marketing?

A)Most exporting intermediaries assume all financial risks on behalf of their clients.
B)Exporting intermediaries are not subject to the same laws as companies, and therefore limit the legal risk involved.
C)Using an exporting intermediary restricts a company to being involved with joint ventures and not direct ownership.
D)Exporting intermediaries guarantee that the products a company is selling will be a good fit for the foreign markets they are entering.
E)This approach involves limited risk because the company has no direct investment in the foreign country.

Question 64

The Grummond Group buys computer peripherals in industrialized countries and sells them to customers in developing countries. Grummond is most likely classified as a(n)

A)trading company.
B)strategic alliance.
C)joint venture.
D)licensee.
E)exporter.

Question 65

What level of commitment in international marketing may be most attractive when the political and economic stability of a foreign country is questionable?

A)Joint ventures
B)Direct ownership
C)Exporting
D)Limited exporting
E)Licensing

Question 66

When a firm's products sell in foreign countries with little or no effort to obtain foreign sales, the firm is engaging in

A)international marketing.
B)global marketing.
C)limited exporting.
D)product licensing.
E)unplanned exporting.

Question 67

Henderson Synthetics' management believes that several of the firm's products could have sizable markets in other countries. To maintain a low level of commitment with minimum effort and cost, Henderson should engage in international marketing through

A)contract manufacturing.
B)exporting.
C)joint ventures.
D)licensing.
E)subsidiaries.

Question 68

The term dumping refers to the sale of

A)products sold in foreign markets that cannot be sold in the United States.
B)products sold in foreign markets at prices above those charged in the United States.
C)all discontinued U.S. products in foreign countries.
D)products sold in foreign countries at unfairly low prices.
E)products sold in foreign markets that cannot pass safety standards in the United States.

Question 69

When the American company Exxon purchases crude oil from Saudi Arabia, it is engaging in

A)licensing.
B)importing.
C)free trade.
D)exporting.
E)dumping.

Question 70

If Caterpillar wished to reach the market in Malaysia but was leery of a direct investment in the country, it might provide a Malaysian operation with the knowledge to produce and market its products in exchange for a commission. This type of arrangement is called

A)licensing.
B)exporting.
C)a strategic alliance.
D)a joint venture.
E)contract manufacturing.

Question 71

If Hyundai, a Korean automobile manufacturing firm, started selling its cars at unfairly low prices to Germany, Hyundai would be engaging in

A)quota-enforcing.
B)embargoing.
C)shoveling.
D)dumping.
E)dipping.

Question 72

At the heart of the ____ are agreements that provide legal ground rules for international commerce and trade policy.

A)United Nations
B)GATT
C)MERCOSUR
D)WTO
E)APEC

Question 73

The World Trade Organization accomplishes all of the following except

A)educating companies about international trade rules.
B)lending money to businesses interested in developing international markets.
C)serving as a forum for trade negotiations.
D)helping settle trade disputes.
E)providing legal ground rules for international commerce.

Question 74

The role of export agents is to

A)bring buyers and sellers from different countries together and collect a commission for arranging sales.
B)purchase products from different companies and sell them to foreign countries.
C)help a firm to make direct investments in foreign countries.
D)contact domestic firms about the opportunities available in exporting.
E)arrange for licensing agreements between domestic and foreign firms.

Question 75

Miller's Home Furnishings uses marketing strategies aimed at markets within the United States, its home country. Miller's engages in

A)domestic marketing.
B)localized marketing.
C)globalized marketing.
D)limited exporting.
E)international marketing.

Question 76

The purchase of products from a foreign source is called

A)exporting.
B)dumping.
C)importing.
D)licensing.
E)venturing.

Question 77

A company not involved in manufacturing that brings together buyers and sellers in different countries is usually referred to as a

A)franchise.
B)contract manufacturer.
C)strategic intermediary.
D)trading company.
E)joint venture.

Question 78

Which of the following lists the levels of involvement in global marketing from the lowest to the highest?

A)International marketing, limited exporting, domestic marketing, globalized marketing
B)Limited exporting, domestic marketing, globalized marketing, international marketing
C)Globalized marketing, international marketing, limited exporting, domestic marketing
D)Domestic marketing, globalized marketing, international marketing, limited exporting
E)Domestic marketing, limited exporting, international marketing, globalized marketing

Question 79

Questor Corporation owns the Spalding brand name but does not produce a single golf club or tennis ball. This arrangement is an example of what type of involvement level for international marketing?

A)Exporting
B)Trading
C)Joint venture
D)Strategic alliance
E)Licensing

Question 80

A(n) ____ is an organization that links buyers and sellers in different countries but is not involved in manufacturing.

A)trading company
B)exporter
C)joint venture
D)strategic alliance
E)licensee