Question 1

Muslim countries are receptive to most Disney products,but they have asked Disney not to include Piglet when it sells its Winnie the Pooh characters because Muslims (as a part of their religious beliefs)contend that pork in any form is unclean.This is an example of a _____ factor that directly affects Disney's global operation.

Accepted Answer

A) political structure 
B) cultural 
C) technological 
D) competitive 
E) natural resource

Question 2

Kit Kat
The popular Kit Kat chocolate bar was created by Rowntree's,a confectionary company in the United Kingdom,in 1935.By the 1940s,Rowntree's was exporting Kit Kats to Australia,New Zealand,South Africa,and Canada.The brand further expanded in the 1970s when Rowntree created a new distribution factory in Germany to meet European demand,and established agreements to distribute the brand in the USA and Japan,through the Hershey and Fujiya companies respectively.In June 1988,Nestlé acquired Kit Kat through the purchase of Rowntree's,giving Nestlé global control over the brand-except in North America,where it is made under license by the Hershey Company.Variants in the traditional chocolate bar began to appear in the mid-1990s and have continued to develop ever since.Kit Kat Japan,in particular,has many unique flavors such as mango-flavored,cucumber,and wasabi Kit Kats.Today,Nestlé produces Kit Kat bars in 21 countries and has expanded its marketplace in Japan,Russia,Turkey,and South America,in addition to markets throughout Europe.
-Refer to Kit Kat.Which of the following statements about the relationship between Nestlé and The Hershey Company is probably TRUE?

Accepted Answer

A) Hershey is not allowed to market the bars as "Kit Kats" in North America. 
B) Hershey does not need to consult Nestlé if it wants to make a unique Kit Kat flavor. 
C) Hershey and Nestlé are in a joint venture together. 
D) Hershey pays Nestlé a fee for the privilege of producing Kit Kat bars. 
E) Nestlé has not given Hershey any proprietary knowledge about Kit Kat bars.

Question 3

An exclusion of all products from certain countries or companies by a government or group is called a(n):

Accepted Answer

A) expropriation. 
B) quota. 
C) tariff. 
D) exchange control. 
E) boycott.

Question 4

With _____,a domestic firm buys part of a foreign company or joins with a foreign company to create a new entity.

Accepted Answer

A) direct investment 
B) a joint venture 
C) a buying-for-export agreement 
D) a contractual agreement 
E) a franchise relationship

Question 5

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 6

Global trade has climbed to about $200 billion a year.

Accepted Answer

A) True 
 B)False

Question 7

_____ 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 8

Individuals and organizations utilizing a global vision to effectively market goods and services across the world are engaged in:

Accepted Answer

A) international selling schemes 
B) borderless commerce 
C) global marketing standardization 
D) global logistics 
E) global marketing

Question 9

About 85 percent of U.S.companies export their products to other countries on a regular basis.

Accepted Answer

A) True 
 B)False

Question 10

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 11

The U.S.government limits the amount of sugarcane that is imported into the country.This is an example of a tariff.

Accepted Answer

A) True 
 B)False

Question 12

Identify at least three negatives of global trade.

Accepted Answer

The answer of Identify at least three negatives of global...

Question 13

When IKEA,the Swedish home furnishings retailer,first entered the Japanese market,it failed.It was more successful in its second try because it was aware of the need to adapt its furnishings to fit the smaller Japanese homes.The _____ environment had the greatest influence on IKEA's first failure in Japan.

Accepted Answer

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

Question 14

Single- and small-use packaging,such as Unilever deodorant sticks that sell for pennies,are cost-effective for multinationals because __________.

Accepted Answer

A) of product standardization with free sample packaging used in developed countries 
B) the income in many countries in less than $1,000 
C) they are easier for rural people to carry and use in the fields 
D) the pricing is fair trade 
E) all of the above

Question 15

Which of the following statements about the impact of international business on the U.S.economy is NOT true?

Accepted Answer

A) America exports over $1.7 trillion in goods and services each year. 
B) Almost one-third of U.S.corporate profits come from international trade and foreign investment. 
C) Every U.S.state has realized net employment gains directly attributed to foreign trade. 
D) Exports create jobs for over 50 million Americans. 
E) The U.S.exports about 20 percent of its industrial production.

Question 16

The United States is selling more domestically produced products in other countries than any other country in the world.This means the United States is the world leader in:

Accepted Answer

A) quota making 
B) exporting 
C) tariff trading 
D) dumping 
E) licensing

Question 17

The International Monetary Fund (IMF)was founded in 1945 to:

Accepted Answer

A) create a safe working environment for workers throughout the world. 
B) promote trade through financial cooperation and eliminate trade barriers in the process. 
C) create knowledge databases on a wide range of subjects for developing nations. 
D) uncover economic fraud and corruption worldwide. 
E) found "micro-banks" in developing nations.

Question 18

Wataniya Mobile
Wataniya Mobile is offering cellular service in the Palestinian territories.It is only the second cell phone carrier in the region and is significant because it is owned by foreign companies and investors like the Qatari royal family and the Palestine Investment Fund.The new service is aimed at increasing cell phone penetration,which is only 35 percent,in this economically challenged area.It has not been easy for Wataniya,though.It took two years to gain the required license from Israel,which controls the Palestinian territories' airwaves and bandwidth required for the service.Even though Wataniya is allowed bandwidth,it has only received 3.8 megahertz of bandwidth from Israel,which is not enough for it to offer 3G mobile services that enable Web browsing and e-mail.
-Refer to Wataniya Mobile.In which stage of globalization is Wataniya Mobile?

Accepted Answer

A) Stage one 
B) Stage two 
C) Stage three 
D) Stage four 
E) Stage five

Question 19

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 stuffy noses.Because CNS is a small company,it initially had trouble promoting its product.Then San Francisco 49er Jerry Rice started regularly wearing them,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.3M is an example of a(n):

Accepted Answer

A) ethnocentric organization. 
B) standard international market. 
C) multinational corporation. 
D) expatriated organization. 
E) organization with no domestic base.

Question 20

The $100,000 donation "did not engender the strong support and affinity among American consumers." It did not get any support from American agricultural groups representing the meat and dairy industry.What does this suggest about a global company like Yellow Tail?

Accepted Answer

A) It should have hired a lobby group first. 
B) Its home market lacked the kinds of controversy the U.S.market had. 
C) HSUS had successfully deceived the Australians. 
D) It did not understand the politics or culture of its chief export market. 
E) all of the above

Exam 5: Developing a Global Vision

An exclusion of all products from certain countries or companies by a government or group is called a(n) :

With _____,a domestic firm buys part of a foreign company or joins with a foreign company to create a new entity.

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?

Global trade has climbed to about $200 billion a year.

_____ 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.

Individuals and organizations utilizing a global vision to effectively market goods and services across the world are engaged in:

About 85 percent of U.S.companies export their products to other countries on a regular basis.

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

The U.S.government limits the amount of sugarcane that is imported into the country.This is an example of a tariff.

Identify at least three negatives of global trade.

Single- and small-use packaging,such as Unilever deodorant sticks that sell for pennies,are cost-effective for multinationals because __________.

Which of the following statements about the impact of international business on the U.S.economy is NOT true?

The United States is selling more domestically produced products in other countries than any other country in the world.This means the United States is the world leader in:

The International Monetary Fund (IMF) was founded in 1945 to:

The $100,000 donation "did not engender the strong support and affinity among American consumers." It did not get any support from American agricultural groups representing the meat and dairy industry.What does this suggest about a global company like Yellow Tail?