Question 1

Regardless of how companies go about pricing their products, their foreign prices will most likely be higher than their domestic prices for comparable products.

Accepted Answer

A) True 
 B)False

Question 2

Management contracting is an unwise choice if a domestic firm can make greater profits by undertaking a whole venture.

Accepted Answer

A) True 
 B)False

Question 3

When adapting advertising messages, media may also need to be adapted internationally because media availability and regulations vary from country to country. This illustrates ________.

Accepted Answer

A)  communication extension 
B)  product invention 
C)  communication adaptation 
D)  straight product extension 
E)  product adaptation

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

The ________ established a free trade zone among the United States, Mexico, and Canada.

Accepted Answer

A)  Union of South American Nations 
B)  European Union 
C)  North American Free Trade Agreement 
D)  Central American Free Trade Agreement 
E)  Latin American Free Trade Association

Question 6

A country's ________ shapes its product and service needs, income levels, and employment levels.

Accepted Answer

A)  quotas 
B)  tariffs 
C)  raw material export economy 
D)  subsistence economy 
E)  industrial structure

Question 7

A blocked currency is one whose removal from the country is restricted by the buyer's government.

Accepted Answer

A) True 
 B)False

Question 8

________ ventures consist of one company collaborating with foreign investors to create a local business in which they share possession and control.

Accepted Answer

A)  Licensing 
B)  Direct investment 
C)  Contract manufacturing 
D)  Management contracting 
E)  Joint ownership

Question 9

Briefly explain the three basic market entry strategies of entering a foreign market.

Accepted Answer

The answer of Briefly explain the three basic market entry...

Question 10

Most international companies strive to adapt global brands to local needs.

Accepted Answer

A) True 
 B)False

Question 11

As the weakened global economy has slowed, many companies are shifting their sights to include a new target - the so-called "bottom of the economic pyramid."

Accepted Answer

A) True 
 B)False

Question 12

Which of the following is an example of a nontariff trade barrier?

Accepted Answer

A)  a sales tax 
B)  customs duty 
C)  a host-country regulation 
D)  excise duty 
E)  an import quota

Question 13

Management contracting consists of one company joining forces with foreign investors to create a local business in which they share possession and control.

Accepted Answer

A) True 
 B)False

Question 14

Providing a host-country partner the right to use a company's manufacturing process, trademark, patent, trade secret, or other item of value is referred to as ________.

Accepted Answer

A)  joint ownership 
B)  direct exporting 
C)  direct investment 
D)  management contracting 
E)  licensing

Question 15

A country may place a limit on the volume of imported citrus fruit that is allowed. This is an example of a(n)________.

Accepted Answer

A)  quota 
B)  tariff 
C)  customs duty 
D)  fine 
E)  excise duty

Question 16

Jazz is a costume jewelry manufacturing company based in the United States. The company decides to sell its products abroad, but it faces the major problem of price escalation. What is price escalation? How can Jazz overcome this problem?

Accepted Answer

The answer of Jazz is a costume jewelry manufacturing company...

Question 17

Foreign-based production facilities offer many advantages to an investing company if the foreign market is small.

Accepted Answer

A) True 
 B)False

Question 18

Often, companies form joint ownership ventures to merge their complementary strengths in developing a global marketing opportunity.

Accepted Answer

A) True 
 B)False

Question 19

Compared to adapted global marketing, standardized global marketing ________.

Accepted Answer

A)  adjusts promotional efforts to address cultural differences in target markets 
B)  results in additional marketing and manufacturing costs 
C)  relies on social media to develop customer relationships 
D)  usually results in diluted brand power over time 
E)  uses the same marketing mix worldwide

Question 20

Veggie Delight, a leading manufacturer of frozen vegetarian burgers, has recently entered the Middle East markets. Based on its research, consumers in the Middle East prefer spicier burgers than in the United States and other countries. So the company alters the ingredients in its burgers to meet the local preferences. In this scenario, Veggie Delight is using a(n)________ strategy to market its product.

Accepted Answer

A)  communication adaptation 
B)  undifferentiated marketing 
C)  straight product extension 
D)  product invention 
E)  product adaptation

Exam 15: The Global Marketplace

Regardless of how companies go about pricing their products, their foreign prices will most likely be higher than their domestic prices for comparable products.

Management contracting is an unwise choice if a domestic firm can make greater profits by undertaking a whole venture.

When adapting advertising messages, media may also need to be adapted internationally because media availability and regulations vary from country to country. This illustrates ________.

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

The ________ established a free trade zone among the United States, Mexico, and Canada.

A country's ________ shapes its product and service needs, income levels, and employment levels.

A blocked currency is one whose removal from the country is restricted by the buyer's government.

________ ventures consist of one company collaborating with foreign investors to create a local business in which they share possession and control.

Briefly explain the three basic market entry strategies of entering a foreign market.

Most international companies strive to adapt global brands to local needs.

As the weakened global economy has slowed, many companies are shifting their sights to include a new target - the so-called "bottom of the economic pyramid."

Which of the following is an example of a nontariff trade barrier?

Management contracting consists of one company joining forces with foreign investors to create a local business in which they share possession and control.

Providing a host-country partner the right to use a company's manufacturing process, trademark, patent, trade secret, or other item of value is referred to as ________.

A country may place a limit on the volume of imported citrus fruit that is allowed. This is an example of a(n) ________.

Jazz is a costume jewelry manufacturing company based in the United States. The company decides to sell its products abroad, but it faces the major problem of price escalation. What is price escalation? How can Jazz overcome this problem?

Foreign-based production facilities offer many advantages to an investing company if the foreign market is small.

Often, companies form joint ownership ventures to merge their complementary strengths in developing a global marketing opportunity.

Compared to adapted global marketing, standardized global marketing ________.