Question 1

The fact that Russia's inflation rate has increased 15.1% since May of 2007 would be an important _____ factor for a company that wanted to do business in that country.

Accepted Answer

A)  legal 
B)  economic 
C)  culture 
D)  technological 
E)  natural

Question 2

_____ takes place when a foreign company produces goods to specification set by a domestic company,with the domestic firm's brand name affixed to the goods.

Accepted Answer

A)  Importing 
B)  Joint venturing 
C)  Exporting 
D)  Contract manufacturing 
E)  Direct investing

Question 3

Assume you are a global marketing consultant for a U.S.manufacturer of light fixtures and have been asked to name the available options or methods of entry into the global marketplace.Name five methods of entry in the order of high risk/high return to low risk/low return for the lighting company.

Accepted Answer

The answer of Assume you are a global marketing consultant...

Question 4

All of the following statements about the use of the Internet in global marketing are true EXCEPT:

Accepted Answer

A)  Opening an e-commerce site on the Internet immediately puts a company in the international marketplace. 
B)  The new Internet economy is being restrained by the old bricks-and-mortar rules,regulations,and habits. 
C)  Consumers in some countries are reluctant to use credit cards to make purchases over the Internet. 
D)  FedEx is a global shipper that helps solve international e-commerce distribution. 
E)  Language barriers are limiting the potential of the Internet in international marketing.

Question 5

Vast differences in natural resources created international dependence and huge shifts of wealth.

Accepted Answer

A) True 
 B)False

Question 6

The Victorinox Swiss Army Knife is found all over the world.It is manufactured and marketed similarly to all consumers.Victorinox uses a(n)_____.

Accepted Answer

A)  ethnocentric strategy 
B)  global marketing standardization approach 
C)  synergistic approach to globalization 
D)  cultural marketing strategy 
E)  traditional approach to marketing

Question 7

Which of the following statements about the European Union (EU)is true?

Accepted Answer

A)  The EU creates a single Europroduct for a generic Euroconsumer. 
B)  The EU removes all internal trade barriers and standardizes regulations in European countries for easier trade. 
C)  The EU can correctly be called the "United States of Europe" because all European voters have agreed to these changes. 
D)  The existence of the EU eliminates protectionist movements by United Europe against the Japanese and the United States. 
E)  The European Union is the largest economy in the world.

Question 8

Sawyer Components manufactures high-cost,customized roller parts for paper mills and is expanding into China because of the opportunity for significant growth in this developing country.The owner uses effective global strategies and is aware of threats from foreign competitors.This illustrates that the owner has a global:

Accepted Answer

A)  advantage 
B)  imperative 
C)  vision 
D)  outsource 
E)  introspection

Question 9

Maybelline formulated cosmetics that were designed to complement the complexions of women with various skin types around the world.Which of the marketing mix strategies did Maybelline use?

Accepted Answer

A)  countertrading 
B)  product invention 
C)  global market standardization 
D)  product licensing 
E)  product adaptation

Question 10

Many people fear world trade because it:

Accepted Answer

A)  will inevitably lead to inflation 
B)  will cause living standards to increase at a slower rate 
C)  causes some people to lose their jobs as production shifts abroad 
D)  has brought entire nations out of poverty 
E)  has increased per capita income for some countries

Question 11

The U.S.government limits the amount of sugar cane that is imported into the country.This is an example of a quota.

Accepted Answer

A) True 
 B)False

Question 12

_____ is a legal process whereby a firm agrees to let another firm use its manufacturing process,trademarks,patents,trade secrets,or other proprietary knowledge in return for a fee or royalty.

Accepted Answer

A)  A joint venture 
B)  Divestment 
C)  Licensing 
D)  A principal-agent agreement 
E)  A contract manufacturing arrangement

Question 13

_____ are foreign sales agents-distributors who live in a foreign country and represent a domestic company in sales situations.They perform the same functions as domestic manufacturers' agents who help with financing and shipping.

Accepted Answer

A)  Export agents 
B)  Export brokers 
C)  Import broker 
D)  Buyers for export 
E)  Licensing agents

Question 14

Breathe Right
CNS,Inc.is the manufacturer of Breathe Right nasal strips,a spring-loaded adhesive device that can be stuck on your nose to open up the nasal passages.Since their introduction in the United States,Breathe Right strips have been used by athletes hoping to improve their performance through increased oxygen flow,snorers hoping for a sound night's sleep,and allergy and cold sufferers looking for relief from their stuffed noses.Because CNS is a small company,it initially had trouble promoting its product.Then San Francisco 49er Jerry Rice started regularly wearing one,and U.S.sales took off.Today,Breathe Right strips are marketed in more than 40 countries.When CNS decided to expand globally,its size made it look for a partner.It chose 3M because 3M already had a global market distribution system and because the Breathe Right strips complemented the 3M first-aid product line.
-Refer to Breathe Right.In the United States,one of the standard methods for introducing a new product is couponing,but many countries prohibit the issuing of coupons.This prohibition would represent a(n)_____ element of the global environment.

Accepted Answer

A)  cultural 
B)  economic 
C)  legal 
D)  technological 
E)  demographic

Question 15

Breathe Right
CNS,Inc.is the manufacturer of Breathe Right nasal strips,a spring-loaded adhesive device that can be stuck on your nose to open up the nasal passages.Since their introduction in the United States,Breathe Right strips have been used by athletes hoping to improve their performance through increased oxygen flow,snorers hoping for a sound night's sleep,and allergy and cold sufferers looking for relief from their stuffed noses.Because CNS is a small company,it initially had trouble promoting its product.Then San Francisco 49er Jerry Rice started regularly wearing one,and U.S.sales took off.Today,Breathe Right strips are marketed in more than 40 countries.When CNS decided to expand globally,its size made it look for a partner.It chose 3M because 3M already had a global market distribution system and because the Breathe Right strips complemented the 3M first-aid product line.
-Refer to Breathe Right.How people value a sound night's sleep is an example of which element of the global environment?

Accepted Answer

A)  culture 
B)  natural 
C)  socioeconomic 
D)  technical 
E)  regulatory

Question 16

Boeing Company
Boeing Company has spent more than $100 million to create a major presence in China,complete with a major office complex,a large spare-parts facility,extra training programs for Chinese air crews,and a deal to buy fuselage sections for the 737 from local manufacturers.Asia is the fastest-growing aircraft market in the world.Asian carriers have been a major part of Boeing's sales,and Boeing predicts 40 percent of future air-traffic growth will come from Asia-Pacific travel,and it wants those passengers flying on Boeing jets.So,Boeing is jointly designing and building an American-Japanese-Chinese plane,all to lock out any European,South American,or even Asian threat to its market.To keep the fate of Asian aerospace in its hands,Boeing is steadily broadening its contractual relationship with Japan's three major players,Mitsubishi Heavy Industries,Kawasaki Heavy Industries,and Fuji Heavy Industries.The Japanese "heavies" make part of the airframe of the Boeing 767 and 20 percent of one of Boeing's newest planes,the 777.This strategy should ensure Boeing's dominance in Japan.
-Refer to Boeing Company.Boeing has chosen the _____ method of entry into the Chinese market.

Accepted Answer

A)  dumping 
B)  contract manufacturing 
C)  licensing 
D)  direct investment 
E)  joint venture

Question 17

Zambia is internationally recognized as the world's second leading producer of cobalt,which is used to make high-speed and high-temperature cutting tools and dyes.A company that wanted to manufacture tools for shaping steel would be most attracted to which element of the Zambian environment?

Accepted Answer

A)  culture 
B)  legal 
C)  economic 
D)  technological 
E)  natural resources

Question 18

Breathe Right
CNS,Inc.is the manufacturer of Breathe Right nasal strips,a spring-loaded adhesive device that can be stuck on your nose to open up the nasal passages.Since their introduction in the United States,Breathe Right strips have been used by athletes hoping to improve their performance through increased oxygen flow,snorers hoping for a sound night's sleep,and allergy and cold sufferers looking for relief from their stuffed noses.Because CNS is a small company,it initially had trouble promoting its product.Then San Francisco 49er Jerry Rice started regularly wearing one,and U.S.sales took off.Today,Breathe Right strips are marketed in more than 40 countries.When CNS decided to expand globally,its size made it look for a partner.It chose 3M because 3M already had a global market distribution system and because the Breathe Right strips complemented the 3M first-aid product line.
-Refer to Breathe Right.The same Breathe Right nasal strip you can buy in any pharmacy in the United States can also be purchased in 40 other countries.CNS used a _____ strategy.

Accepted Answer

A)  mass marketing 
B)  product invention 
C)  market substitution 
D)  product adaptation 
E)  global market standardization

Question 19

Boeing Company
Boeing Company has spent more than $100 million to create a major presence in China,complete with a major office complex,a large spare-parts facility,extra training programs for Chinese air crews,and a deal to buy fuselage sections for the 737 from local manufacturers.Asia is the fastest-growing aircraft market in the world.Asian carriers have been a major part of Boeing's sales,and Boeing predicts 40 percent of future air-traffic growth will come from Asia-Pacific travel,and it wants those passengers flying on Boeing jets.So,Boeing is jointly designing and building an American-Japanese-Chinese plane,all to lock out any European,South American,or even Asian threat to its market.To keep the fate of Asian aerospace in its hands,Boeing is steadily broadening its contractual relationship with Japan's three major players,Mitsubishi Heavy Industries,Kawasaki Heavy Industries,and Fuji Heavy Industries.The Japanese "heavies" make part of the airframe of the Boeing 767 and 20 percent of one of Boeing's newest planes,the 777.This strategy should ensure Boeing's dominance in Japan.
-Refer to Boeing Company.The Boeing facility in China is only one branch of this huge organization.Boeing can be called a(n):

Accepted Answer

A)  domestic trader 
B)  cultural trader 
C)  multinational corporation 
D)  export agent 
E)  localized corporation

Question 20

Which of the following is a criticism of multinational corporations?

Accepted Answer

A)  multinationals sometimes support reactionary and oppressive regimes 
B)  multinationals require excessive employment information 
C)  countertrading 
D)  the transference of labor-intensive technology 
E)  multinationals do not do enough to standardize their marketing mixes

Exam 5: Developing a Global Vision