Deck 12: Global Marketing Strategies

Question 1

________ is the primary market for U.S.franchisers.

A)South America
B)Europe
C)Mexico
D)The Caribbean

Answer 1

B

Question 2

The first step to becoming a truly global company is to:

A)establish an export program.
B)find a joint venture partner.
C)begin to think globally,taking on a global attitude toward a business.
D)hire motivated,multilingual managers.

Answer 2

C

Question 3

________ is said to link trading partners,whether they are giant corporations or single individuals with a small business.

A)Technology
B)Better management
C)Higher salaries
D)Smaller organizations

Answer 3

A

Question 4

The reality of "going global" is that the entrepreneur must understand the needs of the:

A)suppliers.
B)government.
C)customers.
D)employees.

Question 5

A relatively easy way of getting into international marketing,which currently handles about 10% of all U.S.exports,is through ________ who act as distributors in foreign countries for domestic companies of all sizes.

A)foreign licensees
B)international franchises
C)joint ventures
D)export trading companies

Question 6

As with any new venture,the entrepreneur needs to ask,and answer,all of the following questions about the business except:

A)Is there a profitable market in which our firm has the potential to be successful for an extended period of time?
B)Does our firm have the specific resources,skills and commitment to succeed in this venture?
C)Are there pressures domestically that are forcing the firm to seek global opportunities?
D)Are we able to efficiently travel to,from,and within our global market?

Question 7

A(n)________ is a government- or privately-owned company established in a foreign country for the purpose of buying goods made there.

A)export trading company
B)resident buying office
C)foreign distributor
D)export merchants

Question 8

Expanding a small business into international markets:

A)guarantees its success in the marketplace.
B)makes it a member of GATT automatically.
C)often helps it to grow faster and better survive competition.
D)leads to business failure for companies under $100 million in annual revenue.

Question 9

Small businesses go global:

A)for very different reasons than large businesses do.
B)through joint ventures with large companies.
C)when they realize their success and survival depends on them going global.
D)often between their fifth and seventh year of existence as a domestic company.

Question 10

An export trading company is:

A)a government-owned or business-owned facility set up in a foreign country to buy products that are made there.
B)a firm in an overseas distribution network selling noncompetitive products made by other firms.
C)formed by an agreement by which a licenser gives a foreign licensee the right to use a patent,trademark,copyright,technology,and products in return for a percentage of the licensee's sales or profits.
D)a business that buys and sells products in many countries,either in its own name,or as an agent for its buyer-seller clients.

Question 11

A(n)________ is a business that buys and sells products in a number of countries,offering a range of services-importing,exporting,shipping,distributing,and others-to their clients.

A)foreign joint venture
B)export trading company
C)foreign licensee
D)resident buying office

Question 12

The type of companies that are an important channel of foreign distribution for small companies just getting started in international trade or for those lacking the resources to assign their own people to foreign markets are referred to as:

A)export management companies.
B)joint ventures.
C)sole proprietorships.
D)export trading companies.

Question 13

________ is/are one of the trading intermediaries a small company can use to enter the global marketplace.

A)Export merchants
B)Joint ventures
C)International franchising
D)Establishing international locations

Question 14

The simplest and least expensive way to conduct international business is through:

A)foreign licensees.
B)the World Wide Web.
C)joint ventures.
D)trade intermediaries.

Question 15

A small business owner needs to consider several questions before launching an international venture,such as:

A)Do we have the correct multinational management in place?
B)Can we find an appropriate international partner for this venture?
C)What non-tariff barriers do we have to be prepared to overcome?
D)Are we sensitive to the cultural differences of conducting international business?

Question 16

Often joint ventures fail because the entrepreneur didn't:

A)define at the outset important issues such as each party's contributions and responsibilities,the distribution of earnings,the expected life of the relationship,and the circumstances under which the parties can terminate the relationship.
B)understand in depth their partner's reasons and objectives for joining the venture.
C)select a partner who shares their company's values and standards of conduct.
D)All of the above

Question 17

Which of the following is true about global competition?

A)There is less of a focus on quality and more of a focus on price internationally.
B)It makes companies more customer-focused.
C)It is largely the domain of small businesses due their flexibility.
D)It tends to shorten the life cycle of a product or service.

Question 18

________ involves a transaction in which a company selling goods in a foreign country agrees to promote investment and trade in that country.

A)Countertrade
B)Export
C)Import
D)Bartering

Question 19

Becoming a global business depends on instilling a global culture throughout the organization that permeates:

A)a little of what the company does.
B)some of what the company does.
C)a lot of what the company does.
D)everything of what the company does.

Question 20

A resident buying office is:

A)a business that buys and sells products in many countries,either in its own name,or as an agent for its buyer-seller clients.
B)a firm in an overseas distribution network selling noncompetitive products made by other firms.
C)a government-owned or business-owned facility set up in a foreign country to buy products that are made there.
D)formed by an agreement where a licenser gives a foreign licensee the right to use a patent,trademark,copyright,technology,and products in return for a percentage of the licensee's sales or profits.

Question 21

Key to successfully establishing an international location is:

A)securing the necessary licenses to operate in the foreign country.
B)finding the right person to manage the international office.
C)making a substantial investment in personnel.
D)being able to speak the language of the foreign country.

Question 22

Domino's Pizza,McDonald's,etc. ,in Japan and Europe are examples of:

A)foreign management companies.
B)joint venturing.
C)foreign licensing.
D)international franchising.

Question 23

To break into international markets the entrepreneur needs to take several steps including:

A)analyzing his/her commitment to the effort.
B)researching the markets and picking a target market.
C)developing a distribution strategy.
D)All of these

Question 24

John wants to expand into the foreign markets,but he can't convince his partners.They feel international markets are the domain of large corporations.John is facing which barrier to international trade?

A)Financing
B)Political
C)Cultural
D)Attitude

Question 25

When collecting for the sale of foreign goods,a small business will use a ________,an agreement between their bank and the foreign buyer's bank that guarantees payment.

A)bank draft
B)foreign sales agreement
C)tariff voucher
D)letter of credit

Question 26

The most important ingredient in the recipe for a successful joint venture is:

A)choosing the right country or region.
B)generating sufficient capital to pursue the venture.
C)choosing the right partner.
D)hiring efficient employees to carry out the venture.

Question 27

The U.S.Commerce Department,the SBA,and the Trade Administration provide a number of services.TOP-the trade opportunity program-is one and through it entrepreneurs can:

A)receive up-to-the minute pre-screened sales leads,including joint venture possibilities.
B)establish business relationships in major markets by helping them make networking contacts.
C)gain access to contact and product information for more than 82,000 foreign distributors.
D)place advertisements that will reach thousands of foreign customers.

Question 28

Of the three domestic barriers exporters face,________ is the biggest.

A)information
B)attitude
C)financing
D)language

Question 29

If you can't afford to invest in foreign facilities,don't have time to even learn the foreign market,but you are willing to give someone else the right to make and market your product for a fee and royalties,your best bet for entering the foreign market is:

A)a foreign management company.
B)joint venturing.
C)foreign licensing.
D)international franchising.

Question 30

Foreign licensing has its greatest potential in the licensing of:

A)products.
B)intangibles.
C)goods.
D)franchises.

Question 31

In a(n)________,a domestic small business forms an alliance with a company in the target nation for the purpose of exporting to that market.

A)foreign joint venture
B)trade intermediary
C)domestic joint venture
D)export management company

Question 32

The first step an entrepreneur should take when starting an export business is to:

A)recognize that the tiniest companies and least experienced entrepreneurs have the potential.
B)research and pick target markets.
C)develop a distribution strategy.
D)find his/her customer.

Question 33

Evie works for a domestic wholesaler who does business in foreign markets,buying goods from domestic companies and selling them in foreign markets.Evie's firm is an:

A)resident buying office.
B)export trading company.
C)foreign distributor.
D)export merchant.

Question 34

The biggest barrier to small business exports is:

A)the lack of experience.
B)the lack of financing.
C)not understanding other cultures.
D)not having appropriate products for export.

Question 35

Candi is thinking through a number of management issues in making her exporting decision.She is thinking about her company's ________ capacity when she is thinking about how exporting will affect meeting domestic orders,her pricing structure,collection process,and what it will cost her for the company to make enough product for foreign export.

A)financial
B)management
C)production
D)marketing

Question 36

________ is the exchange of goods and services for other goods and services.

A)Countertrade
B)Export
C)Import
D)Bartering

Question 37

In international franchising,________ is/are the secondary market(s)for U.S.franchisers.

A)Japan
B)Canada
C)Europe
D)Both A and B

Question 38

Sometimes,once established in international markets,businesses ________,despite the frustrations of securing services,the significant capital investment involved,etc.

A)offer foreign licenses
B)sell international franchises
C)establish an international location
D)use trade intermediaries

Question 39

________ participating companies get antitrust immunity,allowing them to cooperate freely.

A)Foreign joint venture
B)Trade intermediary
C)Export ventures
D)Export management company

Question 40

Countertrades have significant drawbacks,including:

A)getting goods that are of no direct use to the seller.
B)receiving currency that cannot be exchanged outside the foreign nation.
C)needing a trading intermediary to arrange the countertrade,thereby raising costs.
D)being limited in size to $100,000 per deal.

Question 41

Which of the following refer to demographic / physical environment when screening a country?

A)Urban and rural distribution
B)Climate and weather variations
C)Shipping distance & Natural resources
D)All of the above

Question 42

Political barriers that entrepreneurs face are:

A)government takeovers of private property.
B)attempts at coups to overthrow ruling parties.
C)violent acts against businesses and their employees such as kidnappings and bombings.
D)All of the above

Question 43

A quota is:

A)a duty,or tax,that a government puts on products that are imported into the country.
B)the maximum amount of a product that can be imported or exported.
C)a prohibition or suspension of foreign trade of specific imports or exports.
D)a law that a government uses to regulate products that are imported into the country.

Question 44

Issues to be addressed before entering into a joint venture include:

A)What contributions will each party make?
B)Who will be responsible for making which decisions?
C)Under what circumstances can the parties terminate the relationship?
D)All of the above

Question 45

Understanding the customer needs and desires is a component of:

A)demographic/physical environment.
B)social/cultural environment.
C)product potential.
D)market access.

Question 46

Malcolm won a contract to provide nuts,bolts,and washers to a small African country's military.Unfortunately,neither his bankers nor venture capitalists would provide the loans needed to buy the material to produce the order.The bank didn't do international loans.Which barrier to international trade is Malcolm experiencing?

A)Information
B)Cultural
C)Financing
D)Attitude

Question 47

A ________ is an agreement between an exporter's bank and the foreign buyer's bank that guarantees payment to the exporter for a specific shipment of goods.

A)Bank draft
B)Letter of Credit
C)COD
D)Line of Equity

Question 48

A type of non-tariff barrier to trade that consists of selling large quantities of products in foreign countries below cost is referred to as:

A)dumping.
B)clearance selling.
C)bartering.
D)exporting.

Question 49

The North American Free Trade Agreement has which of the following provisions?

A)The immediate elimination of all tariff and quota barriers on all goods.
B)The elimination of trade barriers among Canada,Mexico,and the United States.
C)A lowering of safety and air quality standards.
D)The formation of a North American Trade Organization.

Question 50

The members of the European Community have limited the number of cars Japanese automakers can export into the European market.This is an example of which type of trade barrier?

A)Tariff
B)Quota
C)Embargo
D)Dumping

Question 51

The North American Free Trade Agreement:

A)brought Chile,Mexico,the United States,and Canada together as one market.
B)eliminated all tariffs among member nations,effective immediately,and raised them to nonmembers.
C)benefits the trading relationship between Canada and the United States most.
D)created a unified market of 456.5 million people and $17 trillion in goods and services.

Question 52

An embargo is:

A)a duty,or tax,that a government puts on products that are imported into the country.
B)the maximum amount of a product that can be imported or exported.
C)a law that a government uses to regulate products that are imported into the country.
D)a prohibition or suspension of foreign trade of specific imports or exports.

Question 53

Wanda is an American manager with a U.S.firm in Japan.Wanda is having difficulty "conducting business." When invited to play golf she attempts to talk business,but her Japanese hosts gently refuse.When she meets a new corporate customer,she tries to get "right down to business" to show respect for their time,but they insist on talking about non-business matters for several meetings.Wanda is experiencing what international barrier to doing business?

A)Cultural
B)Political
C)Domestic
D)Non-tariff

Question 54

The tax that a government puts on products that are imported into a country is called a(n):

A)embargo.
B)tariff.
C)quota.
D)non-tariff barrier.

Question 55

An entrepreneur wants to move into international markets but can't quite figure out how to do it.He's not clear on his target market or how to approach it but he knows he needs to "go global." This entrepreneur is experiencing which barrier to international trade?

A)Financing
B)Information
C)Cultural
D)Attitude

Question 56

Which of the following refers to demographic/physical environment when screening a country?

A)Population size,growth and density
B)System of government
C)Economic growth
D)Balance of payment

Question 57

Which type of international entry requires "prenuptial agreement"?

A)Foreign Licensing
B)Foreign Direct Investment
C)Import / Export
D)None of the above

Question 58

Currency: inflation rate,availability,controls,stability of exchange rate;Balance of payments;Per capita income and distribution;Disposable income and expenditure patterns are components of:

A)demographic/physical environment.
B)social/cultural environment.
C)economic environment.
D)market access.

Question 59

The path to success requires businesses to become ______ who see the world as their market rather than just _______.

A)"exporters";"insiders".
B)"insiders";"exporters"
C)"importers";"insiders"
D)"outsiders";"exporters".

Question 60

An American executive went to a foreign country to sign a business contract.While there,he found that there were numerous government regulations his company needed to meet before closing the deal.This executive was experiencing which barrier to international trade?

A)Non-tariff
B)Political
C)Cultural
D)Domestic

Question 61

Unlike an EMC or an ETC,manufacturer's export agents are international sales representatives who work on commission in a short-term relationship with the small domestic company.

Question 62

Even though large companies must view themselves as "global companies" if they are to succeed,small companies cannot because they have a significant competitive disadvantage in the global environment.

Question 63

Going up against some of the toughest competition in the world forces a company to hone its competitive skills.

Question 64

A recent study concluded that American firms with global operations grew faster and earned more than purely domestic companies.

Question 65

Going global is risk-free

Question 66

Martha has heard that Iranian caviar is in demand and is planning to start an importing business.After further research,she found that she is not able to import such product from Iran to the United States.This is an example of:

A)tariff.
B)quota.
C)embargo.
D)dumping.

Question 67

An important question for the small business owner to ask before entering global markets is,"If we go global,can we get back out?"

Question 68

Globalization is risky

Question 69

George is planning to import fabrics to the Bahamas.After investigating the trade rules,he found that he can only import limited yards of fabrics to the Bahamas.This is an example of:

A)tariff.
B)quota.
C)embargo.
D)dumping.

Question 70

Small companies can no longer consider themselves to be strictly domestic businesses in this hotly competitive global environment

Question 71

In order to grow their international business,Chong and Kelly's Engineered Demolitions,they have had to become more culturally sensitive.

Question 72

Which of the following is correct?

A)A tariff is a tax,or duty,that a government imposes on goods and services imported into that country.
B)A quota is a tax,or duty,that a government imposes on goods and services imported into that country.
C)A quota is a limit on the amount of a product imported into a country.
D)Both A and C

Question 73

Going global tends to make companies more quality and customer conscious.

Question 74

Going global can lower manufacturing costs.

Question 75

A(n)________ is a total ban on imports of certain products or all products from a particular nation.

A)tariff
B)quota
C)embargo
D)dumping

Question 76

A ________ is a document the seller draws on the buyer,requiring the buyer to pay the face amount (the purchase price of the goods)either on sight (a sight draft)or on a specified date (a time draft)once the goods are shipped.

A)Bank draft
B)Letter of Credit
C)COD
D)Line of Equity

Question 77

The ________ of a nation includes the beliefs,values,views,and mores that its inhabitants share.

A)political beliefs
B)business beliefs
C)personal beliefs
D)cultural beliefs

Question 78

For many businesses across the world,"going global" is now a matter of survival,not preference.

Question 79

The least expensive way to enter international markets is by using a trade intermediary.

Question 80

One of the issues an entrepreneur must address before going global is whether or not there is a profitable market in which the firm has the potential to be successful for an extended period of time.