Deck 19: The Global Marketplace

Question 1

Not all companies need to venture into international markets to survive.

Answer 1

True

Question 2

Japanese and other Asian businesspeople prefer to start with polite conversation,and they rarely say no in face-to-face conversations.

Answer 2

True

Question 3

Even poor or developing economies may be attractive markets for all kinds of goods,including luxuries.

Answer 3

True

Question 4

The European Union (EU)represents one of the world's single largest markets.

Question 5

Deciding which markets to enter is the first major decision in international marketing.

Question 6

In a raw material exporting economy,the vast majority of people engage in simple agriculture.

Question 7

The European Union acts as an umbrella organization that oversees GATT and mediates global disputes.

Question 8

A global firm gains marketing,production,and financial advantages that are not available to purely domestic competitors.

Question 9

Possible global markets should be ranked on several factors,including economic growth rate,population growth rate,market growth rate.

Question 10

GATT is a treaty designed to promote world trade by reducing tariffs and other international trade barriers.

Question 11

Before going abroad,the company must weigh several risks and answer many questions about its ability to operate globally.

Question 12

Nontariff trade barriers include restrictive product standards that work against American product features.

Question 13

Coca-Cola,McDonald's,Nike,and KFC have been singled out by anti-globalization protestors all over the world.

Question 14

Barter is often used in subsistence economies.

Question 15

With the adoption of the euro,it is likely that the European Union (EU)will eventually go against 2000 years of tradition and become fully integrated.

Question 16

LG now operates in more than 60 countries,including Canada,and captures 87 percent of its sales from markets outside its home country.LG's global success rests on global standardization.

Question 17

Small companies like Cervélo Cycles can be highly successful international marketers if they carefully carve out a niche.

Question 18

The exchange of Vietnam rice for Philippine fertilizer and coconuts would be an example of barter.

Question 19

Barter is a form of countertrade.

Question 20

Free trade zones are also known as economic communities.

Question 21

To overcome price escalation,when selling to less-affluent consumers in developing countries companies make simpler or smaller versions of their products that can be sold at lower prices.

Question 22

The simplest way to enter a foreign market is through exporting.

Question 23

Joint venturing is when two or more North American companies jointly invest in distributing products to a foreign country.

Question 24

International divisions can be organized as geographical organizations,world product groups,or national groups.

Question 25

Communication adaptation is a global communication strategy of fully adapting advertising messages to local markets.

Question 26

Coca-Cola is less sweet or less carbonated in certain countries.This is known as standardized global marketing.

Question 27

The biggest involvement in a foreign market comes through direct investment-the development of foreign-based assembly or manufacturing facilities.

Question 28

When Sears used qualified,local manufacturers to produce many of the products it sells in its department stores in Mexico,it was using contract manufacturing.

Question 29

The Internet is making global price difference more obvious,forcing companies toward more standardized international pricing.

Question 30

Which of the following is the first major decision a company faces in international marketing?

A) Deciding which markets to enter
B) Deciding how to enter the market
C) Deciding how to set standardized prices
D) Deciding on the global marketing program
E) Looking at the global marketing environment

Question 31

If a firm moves into joint ventures and direct investments,it will eventually need to create international divisions or subsidiaries.

Question 32

Kellogg cereals are sold successfully in essentially the same form around the globe.This is an example of straight product extension.

Question 33

________ industries are safe from foreign competition.

Question 34

John and his boss are in conflict.His boss wants to keep things simple while John wants to expand and go global.John believes that firms that play it safe and do not enter the global market are likely to lose their chances to enter other markets ________.

Question 35

As an example of straight product extension,Coca-Cola calls its American low-calorie beverage Diet Coke by the name of Light in many foreign markets.

Question 36

Finnish cellphone maker Nokia customized its cellphones for the Asian market by raising the ring volume so phones could be heard on crowded streets.This is an example of product invention.

Question 37

The whole-channel view recognizes that to compete internationally a company must effectively design and manage a standardized global marketing plan.

Question 38

As global trade is growing,global competition is ________.

Question 39

The Royal Bank of Canada is a good example of a ________.It operates in more than one country,contains marketing,production,research and development,and financial advantages that are not available to purely domestic competitors.

Question 40

After the oil shock of the 1970s,the number of small,fuel-efficient cars exported from Japan to the United States increased.To protect its auto industry,the U.S.government introduced a(n)________,which is a tax levied by a foreign government against certain imported products.

Question 41

Prime Minister Stephen Harper expressed "serious concern" about the "Buy American" provisions that were put in place in the United States to stimulate its economy.This is an example of a(an)________

Question 42

Which of the following free trade zones represents one of the world's single largest markets?

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

Question 43

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

Question 44

Importers Exclusive purchases products made in Canada and sells them to companies based in the United States and Mexico.Management at Importers Exclusive would most likely be interested in becoming experts in the agreements made by ________.

Question 45

As an alternative to a tariff,a government can also introduce a(n)________,which is a limit on the amount of goods that an importing country will accept in certain product categories.

Question 46

Often the subject of news,both positive and negative,the ________ was established in 1994 at the end of the Uruguay Round,which reduced trade barriers,set international standards for trade,and established the agreement's rules.

Question 47

What is the name of the single agreement that created a market of 447 million people and will eliminate all trade barriers and investment restrictions among the United States,Mexico,and Canada?

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

Question 48

Much of Chile's revenues come from its tin and copper exports.Chile has a ________ economy.

Question 49

As a result of the success of other international agreements,(the)________ was established in 1957 and set out to create a single European market by reducing barriers to the free flow of products,services,finances,and labour among member countries and by developing policies on trade with nonmember nations.

Question 50

Canada's largest trading partner is the United States in most sectors.Which of the following is designed to help foster trade between these and other nations?

A) Tariffs
B) Quotas
C) Exchange controls
D) General Agreement on Tariffs and Trade (GATT)
E) Nontariff trade barriers

Question 51

Economic communities are typically characterized by the fact that ________.

Question 52

Economic communities are also known as ________.

Question 53

The euro is the common currency of (the)_____________.

Question 54

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

Question 55

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

Question 56

_____________________ are very helpful to member countries.The European Union and NAFTA (North American Free Trade Agreement)are prime examples.

Question 57

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

Question 58

With some degree of anxiety Canada signed the ___________in January 1994 to establish a free trade zone among itself,the United States,and Mexico.

Question 59

To limit financial exchanges,a government can impose a(n)________,which serves to limit the amount of foreign exchange and the exchange rate against other currencies.

Question 60

When a U.S.-based industry says to "Buy American," this bias is an example of a(n)________.

Question 61

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

A) Population size and growth
B) Natural resources
C) Cultural and social norms
D) Political stability
E) Climate

Question 62

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

A) Population size and growth
B) Monetary and trade regulations
C) Cultural and social norms
D) Political stability
E) Financial and human resources

Question 63

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

A) Population size and growth
B) Natural resources
C) Cultural and social norms
D) Political stability
E) Climate

Question 64

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

A) Population size and growth
B) Natural resources
C) Cultural and social norms
D) Political stability
E) Climate

Question 65

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

A) Clothing manufacturers
B) Food distributors
C) Chain retailers
D) Small, local businesses
E) Automobile producers

Question 66

Very few market opportunities are available in a(n)________ economy.

Question 67

When entering a foreign market,companies typically start with ________,working through independent international marketing intermediaries

Question 68

Countries with ________ economies may consist mostly of households with very low family incomes.

Question 69

________ 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 semi-finished goods

Question 70

The simplest way to enter a foreign market is through ________.

Question 71

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

Question 72

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

A) Political stability
B) Population density
C) Education
D) Income distribution
E) Consumer lifestyles, beliefs, and values

Question 73

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

Question 74

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

Question 75

Sometimes a country's government will create a ____________ by restricting the export of that currency.Buyers may accept this currency if they can buy other goods in that country that they need themselves or can sell elsewhere for a needed currency.

Question 76

Some social critics say that globalization really means ________ the world's cultures.

Question 77

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.

Question 78

Iran imported health products from Romania in exchange for crude oil.This is an example of which form of countertrade?

A) Barter
B) Compensation
C) Buyback
D) Blocked currency
E) Counterpurchase

Question 79

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

A) Education
B) Monetary and trade regulations
C) Population size and growth
D) Industrial infrastructure
E) Business norms and approaches

Question 80

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

A) Government bureaucracy
B) Natural resources
C) Cultural and social norms
D) Education
E) Climate