Question 1

Asiana, a fragrance manufacturer located in France, markets its products to the North American and Asian countries through independent distributors. In this case, Asiana has entered into international markets through ________.

Accepted Answer

A)  joint ownership 
B)  joint venturing 
C)  indirect exporting 
D)  direct investment 
E)  franchising

Question 2

Global branding and standardization result in reduced costs from economies of scale.

Accepted Answer

A) True 
 B)False

Question 3

Differentiate between straight product extension and product adaptation. Give a few examples of each.

Accepted Answer

The answer of Differentiate between straight product extension and product...

Question 4

Which of the following is a disadvantage of licensing?

Accepted Answer

A)  The licensing company gains entry into a foreign market at a high risk. 
B)  It takes a lot of time for the licensee to gain production expertise and name. 
C)  Licensing is a complex way for a manufacturer to enter international marketing. 
D)  The licensor potentially creates a competitor in the form of the licensee. 
E)  The licensee is restricted from gaining knowledge about the licensor's intellectual property.

Question 5

In addition to joint ownership ventures in China, Intel has made substantial outlays in its own manufacturing and research facilities there. This is an example of ________.

Accepted Answer

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

Question 6

The Bread Company promotes its brand in new international markets by providing rights to local bakeries and bistros to use its recipes and brand name. In this case, The Bread Company's market-entry strategy is referred to as ________.

Accepted Answer

A)  licensing 
B)  exporting 
C)  joint ownership 
D)  contract manufacturing 
E)  management contracting

Question 7

In the global value delivery network, the second link between the sellers and the final buyers moves products from points of production to the borders of countries within which they are sold.

Accepted Answer

A) True 
 B)False

Question 8

PharmaCom serves millions of customers across several Asian countries with the assistance of several pharmaceutical manufacturing sites in China, Japan, and Korea. This is an example of ________.

Accepted Answer

A)  licensing 
B)  exporting 
C)  joint ownership 
D)  contract manufacturing 
E)  management contracting

Question 9

A joint venture involves a company entering foreign markets by partnering with foreign companies to produce or market a product or service.

Accepted Answer

A) True 
 B)False

Question 10

Which type of economy consumes most of its output and barters the rest for simple goods and services?

Accepted Answer

A)  industrial economy 
B)  developed economy 
C)  subsistence economy 
D)  emerging economy 
E)  raw material exporting economy

Question 11

Which of the following is most likely a benefit of joint ownership?

Accepted Answer

A)  It allows a firm to gain the financial and managerial resources that it may otherwise lack. 
B)  It is the simplest way for a domestic company to enter a foreign market. 
C)  It minimizes the need to build a new manufacturing facility in the foreign market. 
D)  It allows one firm to acquire complete ownership of the other firm in the venture. 
E)  It provides significant economies of scale for both the local firm and the foreign investor.

Question 12

Most of the retailing in the United States is done by small, independent retailers.

Accepted Answer

A) True 
 B)False

Question 13

A tax on an imported product designed to raise revenue or protect domestic firms is referred to as a(n)________.

Accepted Answer

A)  exchange 
B)  excise 
C)  fine 
D)  quota 
E)  tariff

Question 14

What are the factors that a company should consider when deciding which markets to enter?

Accepted Answer

The answer of What are the factors that a company...

Question 15

An emerging economy is one which ________.

Accepted Answer

A)  imports large amounts of finished textiles and automobiles 
B)  offers few market opportunities for imported goods 
C)  consumes all or most of its output 
D)  needs few imports of raw textile materials and steel 
E)  has a rapid growth in manufacturing

Question 16

Which of the following is a type of joint venture?

Accepted Answer

A)  direct exporting 
B)  contract manufacturing 
C)  direct investment 
D)  retailing 
E)  wholesaling

Question 17

Companies that export goods to one country cannot have a subsidiary in another country because of international trade agreements.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following is true of exporting?

Accepted Answer

A)  It is the most complex way to enter a foreign market. 
B)  It involves the association of companies with host country partners. 
C)  It typically requires products to be extensively modified for the foreign market. 
D)  It involves the least change in a company's product lines. 
E)  It involves a huge investment if done through independent international distributors.

Question 19

The two economic factors that reflect a country's attractiveness as a market are its industrial structure and import/export ratio.

Accepted Answer

A) True 
 B)False

Question 20

Many organizations no longer have a clearly defined home market. Nor do they have home-office staffs. Instead, multicultural managers operate out of facilities located all around the world, bringing diverse cultural perspectives to their brands and operations. They are truly ________.

Accepted Answer

A)  world product groups 
B)  geographical organizations 
C)  international subsidiaries 
D)  global organizations 
E)  export departments

Exam 15: The Global Marketplace

Asiana, a fragrance manufacturer located in France, markets its products to the North American and Asian countries through independent distributors. In this case, Asiana has entered into international markets through ________.

Global branding and standardization result in reduced costs from economies of scale.

Differentiate between straight product extension and product adaptation. Give a few examples of each.

Which of the following is a disadvantage of licensing?

In addition to joint ownership ventures in China, Intel has made substantial outlays in its own manufacturing and research facilities there. This is an example of ________.

The Bread Company promotes its brand in new international markets by providing rights to local bakeries and bistros to use its recipes and brand name. In this case, The Bread Company's market-entry strategy is referred to as ________.

In the global value delivery network, the second link between the sellers and the final buyers moves products from points of production to the borders of countries within which they are sold.

PharmaCom serves millions of customers across several Asian countries with the assistance of several pharmaceutical manufacturing sites in China, Japan, and Korea. This is an example of ________.

A joint venture involves a company entering foreign markets by partnering with foreign companies to produce or market a product or service.

Which type of economy consumes most of its output and barters the rest for simple goods and services?

Which of the following is most likely a benefit of joint ownership?

Most of the retailing in the United States is done by small, independent retailers.

A tax on an imported product designed to raise revenue or protect domestic firms is referred to as a(n) ________.

What are the factors that a company should consider when deciding which markets to enter?

An emerging economy is one which ________.

Which of the following is a type of joint venture?

Companies that export goods to one country cannot have a subsidiary in another country because of international trade agreements.

Which of the following is true of exporting?

The two economic factors that reflect a country's attractiveness as a market are its industrial structure and import/export ratio.

Many organizations no longer have a clearly defined home market. Nor do they have home-office staffs. Instead, multicultural managers operate out of facilities located all around the world, bringing diverse cultural perspectives to their brands and operations. They are truly ________.