Deck 6: Understanding and Reaching Global Consumers and Markets
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Deck 6: Understanding and Reaching Global Consumers and Markets
1
Protectionism refers to
A)the practice of purchasing products exclusively from a domestic market in order to shore up a nation's economy.
B)the use of tariffs,quotas,and boycotts with the express intention of putting foreign competitors out of business.
C)the practice of shielding one or more sectors of a country's economy from foreign competition through the use of tariffs or quotas.
D)a form of domestic imperialism that holds that only those products manufactured within one's home nation are of sufficient quality to warrant purchase.
E)the practice of purchasing products exclusively from a foreign developing country in order to develop its industries and economic infrastructure.
A)the practice of purchasing products exclusively from a domestic market in order to shore up a nation's economy.
B)the use of tariffs,quotas,and boycotts with the express intention of putting foreign competitors out of business.
C)the practice of shielding one or more sectors of a country's economy from foreign competition through the use of tariffs or quotas.
D)a form of domestic imperialism that holds that only those products manufactured within one's home nation are of sufficient quality to warrant purchase.
E)the practice of purchasing products exclusively from a foreign developing country in order to develop its industries and economic infrastructure.
C
2
Dell established its company primarily with direct telephone-and Internet-based sales.In terms of Dell's global expansion strategy,which of the following statements is most accurate?
A)Dell will continue to use its direct buy strategy but will require all new employees in its sales force to be multilingual.
B)Dell will open "shop-in-a-shop" counters in selected retailers in India where customers can reduce purchase anxiety by using the computers before they buy.
C)Dell will establish call centers in all major international cities so that customers may deal directly with native-born speakers.
D)Dell will issue its own credit card through microfinance-oriented banks,making it possible for customers who would not normally qualify for credit to do so.
E)Dell will maintain the exact same strategies that brought it this far because it sees no reason to "mess with success."
A)Dell will continue to use its direct buy strategy but will require all new employees in its sales force to be multilingual.
B)Dell will open "shop-in-a-shop" counters in selected retailers in India where customers can reduce purchase anxiety by using the computers before they buy.
C)Dell will establish call centers in all major international cities so that customers may deal directly with native-born speakers.
D)Dell will issue its own credit card through microfinance-oriented banks,making it possible for customers who would not normally qualify for credit to do so.
E)Dell will maintain the exact same strategies that brought it this far because it sees no reason to "mess with success."
B
3
Four trends in the past decade have significantly influenced the landscape of global marketing.One of them is
A)an increase in economic protectionism and a decline in free trade.
B)a more aggressive attitude towards initiating international tariffs and quota systems.
C)global competition among global companies for global customers.
D)a decrease in most countries' GDPs and a renewal of nationalism.
E)an increase in most countries' GDPs coupled with an increased degree of consumer ethnocentrism.
A)an increase in economic protectionism and a decline in free trade.
B)a more aggressive attitude towards initiating international tariffs and quota systems.
C)global competition among global companies for global customers.
D)a decrease in most countries' GDPs and a renewal of nationalism.
E)an increase in most countries' GDPs coupled with an increased degree of consumer ethnocentrism.
C
4
Those in favor of protectionism argue that it
A)helps reduce tariffs and quotas.
B)encourages the development of domestic industries.
C)encourages economic reliance on foreign countries.
D)creates opportunities for the outsourcing of domestic jobs.
E)creates a more favorable environment for a global economy.
A)helps reduce tariffs and quotas.
B)encourages the development of domestic industries.
C)encourages economic reliance on foreign countries.
D)creates opportunities for the outsourcing of domestic jobs.
E)creates a more favorable environment for a global economy.
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5
The practice of shielding one or more sectors of a country's economy from foreign competition through the use of tariffs or quotas is referred to as
A)domestic imperialism.
B)protectionism.
C)blocked competition.
D)import taxation.
E)trade restriction.
A)domestic imperialism.
B)protectionism.
C)blocked competition.
D)import taxation.
E)trade restriction.
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6
The U.S.Rice Millers' Association claims that if the Japanese rice market were opened to imports by lowering __________,lower prices would save Japanese consumers $6 billion annually and the United States would gain a large share of the Japanese rice market.
A)boycotts
B)tariffs
C)quotas
D)sanctions
E)subsidies
A)boycotts
B)tariffs
C)quotas
D)sanctions
E)subsidies
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7
The __________ imposed on imported bananas by Western European countries cost consumers $2 billion a year in higher prices.
A)boycotts
B)tariffs
C)quotas
D)sanctions
E)subsidies
A)boycotts
B)tariffs
C)quotas
D)sanctions
E)subsidies
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8
Government taxes on goods or services entering a country that primarily serve to raise prices on imports are referred to as
A)tariffs.
B)quotas.
C)WTO taxes.
D)foreign excise taxes.
E)trade subsidies.
A)tariffs.
B)quotas.
C)WTO taxes.
D)foreign excise taxes.
E)trade subsidies.
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9
In what way is Dell's expansion into the global arena a departure from its prior marketing practices?
A)All Dell products were manufactured in the countries within which they were sold.
B)Dell sold its products to emerging markets using the telephone and Internet sales strategy that was so successful in the United States.
C)Dell opened stores in selected retailers in India.
D)Dell sold only laptops in China whereas it sold both desktops and laptops in India due to trade restrictions in China.
E)Dell designed and distributed the same products globally to take advantage of economies of scale.
A)All Dell products were manufactured in the countries within which they were sold.
B)Dell sold its products to emerging markets using the telephone and Internet sales strategy that was so successful in the United States.
C)Dell opened stores in selected retailers in India.
D)Dell sold only laptops in China whereas it sold both desktops and laptops in India due to trade restrictions in China.
E)Dell designed and distributed the same products globally to take advantage of economies of scale.
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10
Four trends in the past decade have significantly influenced the landscape of global marketing.One of them is
A)an increase in most countries' GDPs coupled with an increased degree of consumer ethnocentrism.
B)a significant increase in economic protectionism and a decline in free trade.
C)a more aggressive attitude toward initiating international tariffs and quota systems.
D)a decrease in most countries' GDPs and a renewal of nationalism.
E)a decline in economic protectionism by individual countries.
A)an increase in most countries' GDPs coupled with an increased degree of consumer ethnocentrism.
B)a significant increase in economic protectionism and a decline in free trade.
C)a more aggressive attitude toward initiating international tariffs and quota systems.
D)a decrease in most countries' GDPs and a renewal of nationalism.
E)a decline in economic protectionism by individual countries.
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11
A government tax on goods or services entering a country is referred to as a
A)GATT tax.
B)quota.
C)tariff.
D)foreign excise tax.
E)subsidy.
A)GATT tax.
B)quota.
C)tariff.
D)foreign excise tax.
E)subsidy.
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12
Dell established its company primarily with direct telephone-and Internet-based sales.In terms of Dell's global expansion strategy,which of the following statements is most accurate?
A)Dell sells its computers via word of mouth,which is the most powerful method for electronics.
B)Dell partners with each country's largest department stores and sell its computers in the small appliance department.
C)Dell issues its own credit card through multinational banks,making it possible for customers who would not normally qualify for credit to do so.
D)Dell distributes its products through individual sales associates who reach out to customers with a first-hand experience at their doorsteps.
E)Dell maintains the exact same U.S.strategies that brought it this far because it sees no reason to "mess with success."
A)Dell sells its computers via word of mouth,which is the most powerful method for electronics.
B)Dell partners with each country's largest department stores and sell its computers in the small appliance department.
C)Dell issues its own credit card through multinational banks,making it possible for customers who would not normally qualify for credit to do so.
D)Dell distributes its products through individual sales associates who reach out to customers with a first-hand experience at their doorsteps.
E)Dell maintains the exact same U.S.strategies that brought it this far because it sees no reason to "mess with success."
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13
Why has Dell,Inc.,embarked on a global growth initiative?
A)National sales have decreased.
B)Dell was recently purchased by Lenovo,a major Chinese competitor.
C)There was too much competition in Dell's direct marketing channel.
D)There are fewer restrictions in computer technology outside the United States.
E)Emerging economies offer significant growth potential.
A)National sales have decreased.
B)Dell was recently purchased by Lenovo,a major Chinese competitor.
C)There was too much competition in Dell's direct marketing channel.
D)There are fewer restrictions in computer technology outside the United States.
E)Emerging economies offer significant growth potential.
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14
Four trends in the past decade have significantly influenced the landscape of global marketing.One of them is
A)an increase in economic protectionism and a decline free trade.
B)a more aggressive attitude towards initiating international tariffs and quota systems.
C)a decrease in most countries' GDPs and a renewal of nationalism.
D)the emergence of networked global marketspace.
E)an increase in most countries' GDPs coupled with an increased degree of consumer ethnocentrism.
A)an increase in economic protectionism and a decline free trade.
B)a more aggressive attitude towards initiating international tariffs and quota systems.
C)a decrease in most countries' GDPs and a renewal of nationalism.
D)the emergence of networked global marketspace.
E)an increase in most countries' GDPs coupled with an increased degree of consumer ethnocentrism.
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15
Four trends in the past decade have significantly influenced the landscape of global marketing.One of them is
A)the rise of economic integration and free trade among nations.
B)an increase in economic protectionism and a decline in free trade.
C)a more aggressive attitude towards initiating international tariffs and quota systems.
D)a decrease in most countries' GDPs and a renewal of nationalism.
E)an increase in most countries' GDPs coupled with an increased degree of consumer ethnocentrism.
A)the rise of economic integration and free trade among nations.
B)an increase in economic protectionism and a decline in free trade.
C)a more aggressive attitude towards initiating international tariffs and quota systems.
D)a decrease in most countries' GDPs and a renewal of nationalism.
E)an increase in most countries' GDPs coupled with an increased degree of consumer ethnocentrism.
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16
In September 2009,the United States imposed a 35% tariff on Chinese tire imports in hopes of sustaining U.S.jobs in tire manufacturing.This addition of tariffs is an example of
A)imposing the rule of eminent domain.
B)increasing ethnocentrism.
C)enhancing domestic imperialism.
D)increasing protectionism.
E)slowing countertrade.
A)imposing the rule of eminent domain.
B)increasing ethnocentrism.
C)enhancing domestic imperialism.
D)increasing protectionism.
E)slowing countertrade.
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17
Which of the following issues raises concerns about the ethics of protectionism?
A)Competitive advantage grows out of continuous improvement.
B)Small firms succeed in foreign niche markets.
C)Tariffs have declined from an average of 40 percent to less than 5 percent.
D)Regional trade agreements provide preferential treatment for member nations.
E)Pan-European marketing strategies are possible due to greater uniformity in packaging standards.
A)Competitive advantage grows out of continuous improvement.
B)Small firms succeed in foreign niche markets.
C)Tariffs have declined from an average of 40 percent to less than 5 percent.
D)Regional trade agreements provide preferential treatment for member nations.
E)Pan-European marketing strategies are possible due to greater uniformity in packaging standards.
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18
Which of the following statements about world trade is most accurate?
A)Manufactured products and commodities account for only 40 percent of world trade.
B)Services such as telecommunications,transportation,and banking make up less than 10 percent of world trade.
C)Dollar value of world trade has more than doubled in the past decade.
D)All nations participate equally in world trade.
E)Free trade among nations is declining in favor of a protectionist atmosphere.
A)Manufactured products and commodities account for only 40 percent of world trade.
B)Services such as telecommunications,transportation,and banking make up less than 10 percent of world trade.
C)Dollar value of world trade has more than doubled in the past decade.
D)All nations participate equally in world trade.
E)Free trade among nations is declining in favor of a protectionist atmosphere.
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19
Tariffs refer to
A)government payments to companies or industries that primarily serve to create competitive advantage for domestic products.
B)government taxes on goods or services entering a country that primarily serve to raise prices on imports.
C)a restriction placed on the amount of a product allowed to enter or leave a country.
D)a minimum requirement for the purchase between two or more nations of products or services.
E)a refusal to purchase or exchange goods or services with another nation unless certain financial or ideological requirements have been satisfied.
A)government payments to companies or industries that primarily serve to create competitive advantage for domestic products.
B)government taxes on goods or services entering a country that primarily serve to raise prices on imports.
C)a restriction placed on the amount of a product allowed to enter or leave a country.
D)a minimum requirement for the purchase between two or more nations of products or services.
E)a refusal to purchase or exchange goods or services with another nation unless certain financial or ideological requirements have been satisfied.
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20
The economic argument for protectionism is that it
A)protects a nation's political security.
B)encourages economic reliance on foreign countries.
C)inhibits the development of domestic industries.
D)creates opportunities for the outsourcing of domestic jobs.
E)creates a more favorable environment for a global economy.
A)protects a nation's political security.
B)encourages economic reliance on foreign countries.
C)inhibits the development of domestic industries.
D)creates opportunities for the outsourcing of domestic jobs.
E)creates a more favorable environment for a global economy.
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21
A restriction placed on the amount of a product allowed to enter or leave a country is referred to as a
A)quota.
B)tariff.
C)GATT tax.
D)subsidy.
E)excise tax.
A)quota.
B)tariff.
C)GATT tax.
D)subsidy.
E)excise tax.
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22
In terms of the global marketplace,there are three primary types of companies: international firms,__________ firms,and transnational firms.
A)large-scale
B)conglomerate
C)intercontinental
D)cosmopolitan
E)multinational
A)large-scale
B)conglomerate
C)intercontinental
D)cosmopolitan
E)multinational
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23
The world's largest manufacturer of peppermint candy canes was in Albany,Georgia,until it could no longer afford to buy the sugar needed for its operation.It moved its manufacturing business to Mexico where there are no restrictions (as existed in the United States)on the amount of sugar that can be brought into the nation.The movement of this U.S.business to Mexico was caused by a(n)__________ established by the U.S.government.
A)tariff
B)trade imbalance
C)quota
D)excise tax
E)subsidy
A)tariff
B)trade imbalance
C)quota
D)excise tax
E)subsidy
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24
The North American Free Trade Agreement was designed to encourage free trade between
A)North America,Central America,and South America.
B)the United States,Canada,and Mexico.
C)the United States and the European Union.
D)member countries originally from NATO (North Atlantic Treaty Organization).
E)North America and the Commonwealth of Independent States.
A)North America,Central America,and South America.
B)the United States,Canada,and Mexico.
C)the United States and the European Union.
D)member countries originally from NATO (North Atlantic Treaty Organization).
E)North America and the Commonwealth of Independent States.
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25
The EU has benefited firms in its member nations because
A)it provides a safe haven in times of world economic crises.
B)there is a common language advantage among EU consumers.
C)most companies within the EU are engaging in strategic global partnerships.
D)there is now a legally binding code of economic conduct.
E)firms do not need to market their products and services on a nation-by-nation basis.
A)it provides a safe haven in times of world economic crises.
B)there is a common language advantage among EU consumers.
C)most companies within the EU are engaging in strategic global partnerships.
D)there is now a legally binding code of economic conduct.
E)firms do not need to market their products and services on a nation-by-nation basis.
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26
President Bill Clinton attempted to protect American firms from foreign competition by placing a government tax on Japanese automobiles imported to the United States.President Clinton's goal was to raise the price on Japanese imports,thereby encouraging American consumers to purchase American-made automobiles.The tax the President threatened to impose is an example of a __________.
A)boycott
B)tariff
C)quota
D)sanction
E)subsidy
A)boycott
B)tariff
C)quota
D)sanction
E)subsidy
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27
Whirlpool recently asked the United States to impose __________ on washing machine imports made by LG Electronics and Samsung Electronics to raise the price of these products.Whirlpool accused these companies of selling below fair market value and receiving anticompetitive export subsidies from their governments,both of which could jeopardize American jobs.
A)boycotts
B)tariffs
C)quotas
D)sanctions
E)embargoes
A)boycotts
B)tariffs
C)quotas
D)sanctions
E)embargoes
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28
If you wanted to set up a business importing amber jewelry from Latvia to the United States,you would have to plan on paying the U.S.Customs Service roughly 20 percent of the value of the product as a(n)__________.
A)bribe
B)tariff
C)subsidy
D)excise tax
E)quota
A)bribe
B)tariff
C)subsidy
D)excise tax
E)quota
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29
Global competition exists when
A)a firm produces and markets its products worldwide rather than in its own domestic market.
B)firms originate,produce,and market their products and services worldwide.
C)two firms from two different countries compete for market share in a domestic market.
D)two or more firms from different nations combine their resources to market products globally.
E)the firm from one nation dominates the market for that product in every other nation.
A)a firm produces and markets its products worldwide rather than in its own domestic market.
B)firms originate,produce,and market their products and services worldwide.
C)two firms from two different countries compete for market share in a domestic market.
D)two or more firms from different nations combine their resources to market products globally.
E)the firm from one nation dominates the market for that product in every other nation.
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30
S.citizens pay $5 billion more annually for shoes and Japanese citizens pay $6 billion more for rice than the actual cost of the products because
A)both countries have suffered major financial crises due a severe trade imbalance.
B)both countries have imposed tariffs on imported goods to protect their domestic markets.
C)both countries have imposed limits on the quantity of these goods that can leave their respective domestic markets.
D)both products are considered essentials and as a result are more heavily taxed.
E)these products were purchased at a lower price from nations that currently are under governmental sanctions.
A)both countries have suffered major financial crises due a severe trade imbalance.
B)both countries have imposed tariffs on imported goods to protect their domestic markets.
C)both countries have imposed limits on the quantity of these goods that can leave their respective domestic markets.
D)both products are considered essentials and as a result are more heavily taxed.
E)these products were purchased at a lower price from nations that currently are under governmental sanctions.
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31
The three types of companies that populate and compete in the global marketplace are (1)international firms; (2)multinational firms; and (3)__________ firms.
A)multiethnic
B)transnational
C)multidomestic
D)ethnocentric
E)meganational
A)multiethnic
B)transnational
C)multidomestic
D)ethnocentric
E)meganational
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32
Russia currently has a limit on pork of 400,000 metric tons annually that can be imported by any country.This restriction would be considered a
A)tariff.
B)trade imbalance.
C)quota.
D)excise tax.
E)subsidy.
A)tariff.
B)trade imbalance.
C)quota.
D)excise tax.
E)subsidy.
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33
The European Union (EU)has been beneficial to electronic commerce because it is no longer necessary to
A)use multiple languages when settling accounts for purchases made across borders.
B)continually monitor currency exchange rates.
C)trade with the former Eastern European communist countries.
D)obey international e-trade regulations.
E)use the American dollar as the economic standard.
A)use multiple languages when settling accounts for purchases made across borders.
B)continually monitor currency exchange rates.
C)trade with the former Eastern European communist countries.
D)obey international e-trade regulations.
E)use the American dollar as the economic standard.
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34
Pan-European marketing strategies are possible because: (1)firms do not need to market their products and services on a nation-by-nation basis; (2)there can be greater uniformity in product and packaging standards; (3)most tariffs that affect pricing practices have been removed; (4)European wide distribution from fewer locations is now feasible given open borders; and (5)
A)there is a legally binding code of economic conduct.
B)there are effective countermeasures for protectionism.
C)there are fewer regulatory restrictions on transportation,advertising,and promotion.
D)there is a common language advantage among EU consumers.
E)most companies within the EU are engaging in strategic global partnerships.
A)there is a legally binding code of economic conduct.
B)there are effective countermeasures for protectionism.
C)there are fewer regulatory restrictions on transportation,advertising,and promotion.
D)there is a common language advantage among EU consumers.
E)most companies within the EU are engaging in strategic global partnerships.
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35
Coca-Cola has operations in all but three nations in the world and Pepsi-Cola is now available in more than 160 countries and territories,making the soft drink industry an example of
A)acculturation.
B)free trade.
C)global competition.
D)global branding.
E)transactional exchange.
A)acculturation.
B)free trade.
C)global competition.
D)global branding.
E)transactional exchange.
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36
A quota refers to
A)a government tax on goods or services entering a country that primarily serves to raise prices on imports.
B)government payments to companies or industries that serve to lower costs and provide a competitive advantage to domestic industries.
C)a restriction placed on the amount of a product allowed to enter or leave a country.
D)a minimum requirement for the purchase of specific products or services between two nations.
E)a refusal to purchase or exchange goods or services with another nation unless certain financial or ideological requirements have been satisfied.
A)a government tax on goods or services entering a country that primarily serves to raise prices on imports.
B)government payments to companies or industries that serve to lower costs and provide a competitive advantage to domestic industries.
C)a restriction placed on the amount of a product allowed to enter or leave a country.
D)a minimum requirement for the purchase of specific products or services between two nations.
E)a refusal to purchase or exchange goods or services with another nation unless certain financial or ideological requirements have been satisfied.
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37
In terms of the global marketplace,there are three primary types of companies: __________,multinational firms,and transnational firms.
A)worldwide
B)conglomerate
C)intercontinental
D)international
E)cosmopolitan
A)worldwide
B)conglomerate
C)intercontinental
D)international
E)cosmopolitan
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38
The administrative,marketing,and manufacturing operations that many international firms,multinational firms,and transnational firms have around the world are often called
A)divisions.
B)outlets.
C)departments.
D)markets.
E)holding companies.
A)divisions.
B)outlets.
C)departments.
D)markets.
E)holding companies.
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39
When firms originate,produce,and market their products and services worldwide,it is referred to as __________.
A)acculturation
B)global competition
C)free trade
D)global branding
E)transactional exchange
A)acculturation
B)global competition
C)free trade
D)global branding
E)transactional exchange
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40
Recently,the Japanese government,under pressure from its domestic farm lobby,slapped government taxes on mushrooms,leeks,and the reeds used in tatami mats that were being imported from China.Japan levied
A)WTO taxes.
B)quotas.
C)tariffs.
D)excise taxes.
E)subsidies.
A)WTO taxes.
B)quotas.
C)tariffs.
D)excise taxes.
E)subsidies.
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41
__________ firm views the world as one market and emphasizes cultural similarities across countries or universal consumer needs and wants more than differences.
A)transcontinental
B)multidomestic
C)international
D)multinational
E)transnational
A)transcontinental
B)multidomestic
C)international
D)multinational
E)transnational
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42
Generally speaking,a(n)__________ firm markets its existing products and services in other countries the same way it does in its home country.
A)meganational
B)international
C)multinational
D)transnational
E)intranational
A)meganational
B)international
C)multinational
D)transnational
E)intranational
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43
Which of the following statements regarding global brands is most accurate?
A)A global brand has dispersed marketing centers,each of which is responsible for a specific region.
B)A global brand is marketed under the same name in multiple countries.
C)A global brand alters the product formulation or service for each geographical region.
D)A global brand delivers multiple benefits to the GDP of each country.
E)A global brand is a collaborative effort among several different transnational firms.
A)A global brand has dispersed marketing centers,each of which is responsible for a specific region.
B)A global brand is marketed under the same name in multiple countries.
C)A global brand alters the product formulation or service for each geographical region.
D)A global brand delivers multiple benefits to the GDP of each country.
E)A global brand is a collaborative effort among several different transnational firms.
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44
The strategy used by firms that have as many different product variations,brand names,and advertising programs as countries in which they do business is referred to as a(n)
A)ethnocentric strategy.
B)multidomestic strategy.
C)transnational marketing strategy.
D)global marketing strategy.
E)multimarket strategy.
A)ethnocentric strategy.
B)multidomestic strategy.
C)transnational marketing strategy.
D)global marketing strategy.
E)multimarket strategy.
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45
Unilever markets its Snuggle fabric softener differently in different parts of the world.Unilever is a(n)__________ firm.
A)ethnocentric
B)multinational
C)transnational
D)global
E)international
A)ethnocentric
B)multinational
C)transnational
D)global
E)international
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46
S.appliance manufacturers find that different customs about shopping must be used to determine product design.For instance,people in Northern Europe shop only once a week,so they need bigger refrigerators than Southern Europeans,who shop daily.Furthermore,Northern Europeans insist that freezers should be on the top just as firmly as Southern Europeans insist that freezers should be on the bottom.Consumers in other regions use their appliances differently and have other different product demands.Given this information,you should conclude U.S.appliance manufacturers would be more likely successful if they used a(n)__________ marketing strategy.
A)global
B)multidomestic
C)transnational
D)meganational
E)international
A)global
B)multidomestic
C)transnational
D)meganational
E)international
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47
A multidomestic marketing strategy refers to
A)the strategy of transnational firms that employ the practice of standardizing marketing activities when there are cultural similarities and adapting them when cultures differ.
B)the strategy used by firms that use the same product variations,brand names,and advertising programs for every country in which they do business.
C)the strategy used by firms that have as many different product variations,brand names,and advertising programs as countries in which they do business.
D)the strategy of seeking out already established firms in other nations and selling them the rights to manufacture and distribute the firm's products through the host nation's established infrastructure.
E)the strategy currently used by most U.S.domestic firms that when entering a new international market,these firms offer only those products that require the least amount of product adaptation or consumer education.
A)the strategy of transnational firms that employ the practice of standardizing marketing activities when there are cultural similarities and adapting them when cultures differ.
B)the strategy used by firms that use the same product variations,brand names,and advertising programs for every country in which they do business.
C)the strategy used by firms that have as many different product variations,brand names,and advertising programs as countries in which they do business.
D)the strategy of seeking out already established firms in other nations and selling them the rights to manufacture and distribute the firm's products through the host nation's established infrastructure.
E)the strategy currently used by most U.S.domestic firms that when entering a new international market,these firms offer only those products that require the least amount of product adaptation or consumer education.
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48
A brand marketed under the same name in multiple countries with similar and centrally coordinated marketing programs is referred to as a
A)transnational brand.
B)international brand.
C)multinational brand.
D)global brand.
E)meganational brand.
A)transnational brand.
B)international brand.
C)multinational brand.
D)global brand.
E)meganational brand.
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49
Mars,America's second-largest candy company,began doing business in Russia in the late 1980s.The Snickers bar is one of the top selling candies in Russia and is marketed in much the same way as it is in the United States.Mars is most likely a(n)__________ firm.
A)international
B)multidomestic
C)transnational
D)meganational
E)multinational
A)international
B)multidomestic
C)transnational
D)meganational
E)multinational
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50
Which of the following types of firms would be most likely to use a global marketing strategy?
A)multidomestic
B)multinational
C)multicountry
D)transnational
E)transborder
A)multidomestic
B)multinational
C)multicountry
D)transnational
E)transborder
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51
A global marketing strategy refers to
A)the strategy used by multinational firms that have as many different product variations,brand names,and advertising programs as countries in which they do business.
B)the strategy of transnational firms not to employ adaptive marketing techniques when there are cultural differences,but to redirect their marketing resources towards customer education.
C)the strategy of transnational firms that employ the practice of standardizing marketing activities when there are cultural similarities and adapting them when cultures differ.
D)the global strategy of seeking out already established firms in other nations and selling them the rights to manufacture and distribute the firm's products through a host nation's local businesses.
E)the strategy currently used by most U.S.domestic firms that when entering a new international market,these firms offer only those products that require the least amount of product adaptation.
A)the strategy used by multinational firms that have as many different product variations,brand names,and advertising programs as countries in which they do business.
B)the strategy of transnational firms not to employ adaptive marketing techniques when there are cultural differences,but to redirect their marketing resources towards customer education.
C)the strategy of transnational firms that employ the practice of standardizing marketing activities when there are cultural similarities and adapting them when cultures differ.
D)the global strategy of seeking out already established firms in other nations and selling them the rights to manufacture and distribute the firm's products through a host nation's local businesses.
E)the strategy currently used by most U.S.domestic firms that when entering a new international market,these firms offer only those products that require the least amount of product adaptation.
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52
The strategy transnational firms employ that standardizes marketing activities when there are cultural similarities and adapts them when cultures differ is referred to as a(n)
A)global marketing strategy.
B)integrated marketing strategy.
C)transnational marketing strategy.
D)meganational marketing strategy.
E)international marketing strategy.
A)global marketing strategy.
B)integrated marketing strategy.
C)transnational marketing strategy.
D)meganational marketing strategy.
E)international marketing strategy.
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53
A firm that views the world as consisting of unique parts and markets to each part differently is referred to as a(n)
A)meganational firm.
B)extranational firm.
C)international firm.
D)multinational firm.
E)transnational firm.
A)meganational firm.
B)extranational firm.
C)international firm.
D)multinational firm.
E)transnational firm.
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54
Which of the following statements about global brands is most accurate?
A)A global brand has centrally coordinated marketing programs.
B)A global brand is marketed under different names but uses identical ads for all markets.
C)A global brand alters the product formulation or service for each geographical region.
D)A global brand delivers multiple benefits based on the GDP of each country.
E)A global brand is a collaborative effort among several different national firms.
A)A global brand has centrally coordinated marketing programs.
B)A global brand is marketed under different names but uses identical ads for all markets.
C)A global brand alters the product formulation or service for each geographical region.
D)A global brand delivers multiple benefits based on the GDP of each country.
E)A global brand is a collaborative effort among several different national firms.
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55
Disney employed a(n)__________ marketing strategy for its Disneyland Paris,particularly when it came to the eateries in the park.These restaurants featured recipes that were revised for local tastes,alcoholic beverages (not permitted in previous parks),and increased outdoor seating.
A)global
B)multidomestic
C)transnational
D)meganational
E)international
A)global
B)multidomestic
C)transnational
D)meganational
E)international
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56
Lever Europe,a division of Unilever,markets its Snuggle fabric softener in the United States.But in 10 European countries,it uses seven brand names,including Kuschelweich in German,Coccolino in Italy,and Mimosin in France.These products also have different packages,different advertising programs,and occasionally different formulas.From this information,we can assume that Lever Europe uses a(n)__________ marketing strategy.
A)ethnocentric
B)transnational
C)global
D)international
E)multidomestic
A)ethnocentric
B)transnational
C)global
D)international
E)multidomestic
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57
__________ firm engages in trade and marketing in different countries as an extension of the marketing strategy in its home country.
A)multidomestic
B)meganational
C)international
D)multinational
E)transnational
A)multidomestic
B)meganational
C)international
D)multinational
E)transnational
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58
In terms of the global marketplace,there are three primary types of companies: (1)international firms; (2)multinational firms; and (3)transnational firms.The key factor that distinguishes one from another is
A)the firm's financial capacity to take risks.
B)the willingness and ability to embrace diversity and cultural differences.
C)the firm's orientation toward and strategy for global markets and marketing.
D)the relative position of the product or service in terms of its life cycle.
E)the relative size of the firm both in financial terms and in production capacity.
A)the firm's financial capacity to take risks.
B)the willingness and ability to embrace diversity and cultural differences.
C)the firm's orientation toward and strategy for global markets and marketing.
D)the relative position of the product or service in terms of its life cycle.
E)the relative size of the firm both in financial terms and in production capacity.
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59
A global brand refers to
A)two or more domestic products that coincidentally share the same brand name but represent two completely unrelated products.
B)two or more international products that coincidentally share the same brand name but represent two completely unrelated products.
C)a brand marketed under the same name in multiple countries with similar and centrally coordinated marketing programs.
D)a brand that is essentially the same but that has had minor adaptations made to meet the more specific needs of different nations.
E)a brand marketed under different names in multiple countries with similar and centrally coordinated marketing programs.
A)two or more domestic products that coincidentally share the same brand name but represent two completely unrelated products.
B)two or more international products that coincidentally share the same brand name but represent two completely unrelated products.
C)a brand marketed under the same name in multiple countries with similar and centrally coordinated marketing programs.
D)a brand that is essentially the same but that has had minor adaptations made to meet the more specific needs of different nations.
E)a brand marketed under different names in multiple countries with similar and centrally coordinated marketing programs.
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60
Companies that use a(n)__________ marketing strategy have as many different product variations,brand names,and advertising programs as countries in which they do business.
A)ethnocentric
B)multidomestic
C)transnational
D)global
E)international
A)ethnocentric
B)multidomestic
C)transnational
D)global
E)international
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61
For the marketer,a thorough __________ involves an understanding of and an appreciation for the values,customs,symbols,and language of other societies.
A)market synthesis
B)international sociographic study
C)anthropological examination
D)cross-cultural analysis
E)ethnocentrism assessment
A)market synthesis
B)international sociographic study
C)anthropological examination
D)cross-cultural analysis
E)ethnocentrism assessment
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62
A global brand is a brand marketed under the same name in multiple countries with similar and centrally coordinated marketing programs.However,adaptations of global brands are made
A)if required by government regulations in the host market and for no other reason.
B)only in its initial introduction into a market and only until the brand is recognized.
C)by domestic competitors causing brand confusion.
D)only when necessary to better connect the brand to consumers in different markets.
E)when there is a serious drop in market share.
A)if required by government regulations in the host market and for no other reason.
B)only in its initial introduction into a market and only until the brand is recognized.
C)by domestic competitors causing brand confusion.
D)only when necessary to better connect the brand to consumers in different markets.
E)when there is a serious drop in market share.
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63
Based on a study of 6,500 teens in 26 countries,when asked what country had the most influence on their attitudes and purchase behavior,54 percent of teens from the United States,87 percent of those from Latin America,80 percent of the Europeans,and 80 percent of those from Asia named
A)the United States.
B)the United Kingdom.
C)Japan.
D)France.
E)Russia.
A)the United States.
B)the United Kingdom.
C)Japan.
D)France.
E)Russia.
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64
What is considered normal and expected about the way people do things in a specific country is referred to as __________.
A)morals
B)ethics
C)values
D)customs
E)beliefs
A)morals
B)ethics
C)values
D)customs
E)beliefs
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65
The reverence that Japan shows towards its elderly is an example of the nation's __________.
A)values
B)beliefs
C)customs
D)religion
E)cultural diversity
A)values
B)beliefs
C)customs
D)religion
E)cultural diversity
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66
The use of __________ as a tool for exchanging goods,services,and information on a global scale is one of the trends that has affected world trade.
A)buying centers
B)Internet technology
C)language translators
D)tariff and quota policies
E)multinational marketing strategies
A)buying centers
B)Internet technology
C)language translators
D)tariff and quota policies
E)multinational marketing strategies
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67
Which of the following statements about the emergence of a networked global marketspace is most accurate?
A)Marketspace creates an unfair competitive environment for emerging nations.
B)More business-to-consumer marketing is done on the Internet than business-to-business marketing.
C)The most active participants in the networked global marketspace are companies in developing nations.
D)All business in the networked global marketspace is conducted in English.
E)The chief advantage of the global marketspace over the traditional bricks-and-mortar stores for customers is the ability to shop anywhere,at any time,and at a lower cost.
A)Marketspace creates an unfair competitive environment for emerging nations.
B)More business-to-consumer marketing is done on the Internet than business-to-business marketing.
C)The most active participants in the networked global marketspace are companies in developing nations.
D)All business in the networked global marketspace is conducted in English.
E)The chief advantage of the global marketspace over the traditional bricks-and-mortar stores for customers is the ability to shop anywhere,at any time,and at a lower cost.
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68
The study of similarities and differences among consumers in two or more nations or societies is referred to as __________.
A)market synthesis
B)cross-cultural analysis
C)international sociographics
D)transnational anthropology
E)multicultural ethnocentrism
A)market synthesis
B)cross-cultural analysis
C)international sociographics
D)transnational anthropology
E)multicultural ethnocentrism
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69
Global consumers refer to
A)all potential consumers for any and all products or services regardless of cultural,ethnic,or national origins.
B)customers within a nation who consider the entire world a single marketplace.
C)consumer groups living in many countries or regions of the world who have similar needs or seek similar features and benefits from products or services.
D)consumer groups living in many countries or regions of the world that have similar needs but seek customized features and benefits from products or services that reflect their individual cultures.
E)multinational organizations whose products incorporate raw materials,assembly,and distribution contributions from multiple nations before they are marketed.
A)all potential consumers for any and all products or services regardless of cultural,ethnic,or national origins.
B)customers within a nation who consider the entire world a single marketplace.
C)consumer groups living in many countries or regions of the world who have similar needs or seek similar features and benefits from products or services.
D)consumer groups living in many countries or regions of the world that have similar needs but seek customized features and benefits from products or services that reflect their individual cultures.
E)multinational organizations whose products incorporate raw materials,assembly,and distribution contributions from multiple nations before they are marketed.
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70
Almost all countries have some division of social class (upper,middle,and lower).The determining factor for the assignment to one of these classes may differ from country to country.For example,in the United States,the primary determining factor is occupation; in India,it is birthright; in China,it is geographical region and education; and in Singapore,it is income.These differences are best explained in terms of a country's
A)cultural mores.
B)legal system.
C)customs.
D)religion.
E)values.
A)cultural mores.
B)legal system.
C)customs.
D)religion.
E)values.
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71
Which of the following examples best demonstrates a company's appreciation of another country's values?
A)American companies in Germany encourage the use of all types of credit cards.
B)In Brazil,American companies are extremely careful to keep to a strict agenda and time schedule,even though an informal structure is preferred.
C)Bath products are advertised by portraying intimate scenes between husbands and wives in countries where personal privacy is important.
D)McDonald's restaurants in India serve a full line of products except for hamburgers made from beef.
E)Vogue Italia publishing a feature with a model wearing "slave earrings" which it said were "worn by women of color during the slave trade".
A)American companies in Germany encourage the use of all types of credit cards.
B)In Brazil,American companies are extremely careful to keep to a strict agenda and time schedule,even though an informal structure is preferred.
C)Bath products are advertised by portraying intimate scenes between husbands and wives in countries where personal privacy is important.
D)McDonald's restaurants in India serve a full line of products except for hamburgers made from beef.
E)Vogue Italia publishing a feature with a model wearing "slave earrings" which it said were "worn by women of color during the slave trade".
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72
Consumer groups living in many countries or regions of the world that have similar needs or seek similar features and benefits from products or services are referred to as
A)transnational consumers.
B)meganational consumers.
C)international consumers.
D)multinational consumers.
E)global consumers.
A)transnational consumers.
B)meganational consumers.
C)international consumers.
D)multinational consumers.
E)global consumers.
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73
The appreciation of fashion,music,and a desire for novelty and trendier designs and images
A)are preferences found more in American teenagers than in most other cultures around the world.
B)actually begin at age 10,but begin to decline significantly as students enter high school.
C)ironically are found more for teenagers who cannot afford to make those purchases than for those who can.
D)are preferences of teenagers around the world regardless of whether they live.
E)are often established early among European teens and they typically linger well into adulthood.
A)are preferences found more in American teenagers than in most other cultures around the world.
B)actually begin at age 10,but begin to decline significantly as students enter high school.
C)ironically are found more for teenagers who cannot afford to make those purchases than for those who can.
D)are preferences of teenagers around the world regardless of whether they live.
E)are often established early among European teens and they typically linger well into adulthood.
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74
Which of the following examples best demonstrates a company's appreciation for another country's values?
A)A German company allows customers to make large purchases using lay-away (paying small amounts until the item is paid for and delivered).
B)In Brazil,an appliance maintenance firm schedules service appointments allowing only 15 minutes of leeway for missed calls or no shows.
C)In Japan,a spa owner created special exercise classes for husbands and wives.
D)In India,a popular hamburger chain separated its dining area by color for people who wanted to eat beef and those who did not.
E)Calvin Klein reduced the number of outdoor advertising placements showing scantily clad models in countries with predominantly Muslim populations.
A)A German company allows customers to make large purchases using lay-away (paying small amounts until the item is paid for and delivered).
B)In Brazil,an appliance maintenance firm schedules service appointments allowing only 15 minutes of leeway for missed calls or no shows.
C)In Japan,a spa owner created special exercise classes for husbands and wives.
D)In India,a popular hamburger chain separated its dining area by color for people who wanted to eat beef and those who did not.
E)Calvin Klein reduced the number of outdoor advertising placements showing scantily clad models in countries with predominantly Muslim populations.
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75
Values refer to
A)personally or socially held core beliefs that are consistent within a given culture.
B)the beliefs that dictate a person's behavior,which are often derived from a religious code of conduct.
C)personally or socially preferable modes of conduct or states of existence that tend to persist over time.
D)the innate sense of what a person considers to be right or wrong in terms of his or her own conduct when dealing with others.
E)those personal traits regarding honesty and integrity as well as one's preferable modes of conduct or states of existence that have been passed down from generation to generation.
A)personally or socially held core beliefs that are consistent within a given culture.
B)the beliefs that dictate a person's behavior,which are often derived from a religious code of conduct.
C)personally or socially preferable modes of conduct or states of existence that tend to persist over time.
D)the innate sense of what a person considers to be right or wrong in terms of his or her own conduct when dealing with others.
E)those personal traits regarding honesty and integrity as well as one's preferable modes of conduct or states of existence that have been passed down from generation to generation.
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76
Around the world,middle-class,youth,and elite markets consume similar assortments of products and services,regardless of geographic location,are referred to as
A)transnational consumers.
B)meganational consumers.
C)international consumers.
D)multinational consumers.
E)global consumers.
A)transnational consumers.
B)meganational consumers.
C)international consumers.
D)multinational consumers.
E)global consumers.
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77
Thirteen- to nineteen-year-olds in Europe,North America,South America,and the industrialized nations of Asia
A)are more similar than different regarding their purchase behaviors.
B)are becoming more similar,but still differ significantly in terms of fashion and design.
C)are rebelling against the Americanization of fashion and culture.
D)have some very different appreciation of fashions and music.
E)are more and more influenced by Asian culture than European culture.
A)are more similar than different regarding their purchase behaviors.
B)are becoming more similar,but still differ significantly in terms of fashion and design.
C)are rebelling against the Americanization of fashion and culture.
D)have some very different appreciation of fashions and music.
E)are more and more influenced by Asian culture than European culture.
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78
Cross-cultural analysis refers to the study of
A)the subgroups within the larger,or national,culture with unique values,ideas,and attitudes.
B)the set of values,ideas,and attitudes that are learned and shared among the consumers of a country.
C)similarities and differences among consumers in two or more nations or societies.
D)buying behaviors within a given nation to identify similarities and differences.
E)buying behaviors within a given nation that links a person's actions to the cultural group with which he or she identify most.
A)the subgroups within the larger,or national,culture with unique values,ideas,and attitudes.
B)the set of values,ideas,and attitudes that are learned and shared among the consumers of a country.
C)similarities and differences among consumers in two or more nations or societies.
D)buying behaviors within a given nation to identify similarities and differences.
E)buying behaviors within a given nation that links a person's actions to the cultural group with which he or she identify most.
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79
McDonald's sells its popular Maharaja Mac that consists of two all-chicken patties,special sauce,lettuce,cheese,pickles,and onions on a sesame-seed bun in __________.
A)Russia
B)China
C)Tanzania
D)Egypt
E)India
A)Russia
B)China
C)Tanzania
D)Egypt
E)India
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80
Personally or socially preferable modes of conduct or states of existence that tend to persist over time are referred to as __________.
A)customs
B)ethics
C)values
D)culture
E)beliefs
A)customs
B)ethics
C)values
D)culture
E)beliefs
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