Question 1

Around the world, middle-class, youth, and elite markets that consume similar assortments of products and services, regardless of geographic location, are referred to as

Accepted Answer

A) transnational consumers. 
B) meganational consumers. 
C) international consumers. 
D) multinational consumers. 
E) global consumers.

Question 2

Direct investment in international marketing refers to

Accepted Answer

A) offering the right to a trademark, patent, trade secret, or similarly valued items of intellectual property in return for a royalty or fee. 
B) contracting with a foreign firm to manufacture products according to certain specifications. 
C) a national market entry strategy that entails a foreign company and a local firm investing together to create a local business. 
D) having a company handle its own exports directly, without intermediaries. 
E) a global market entry strategy that entails a domestic firm actually investing in and owning a foreign subsidiary or division.

Question 3

A brand marketed under the same name in multiple countries with similar and centrally coordinated marketing programs is referred to as

Accepted Answer

A) a transnational brand. 
B) an international brand. 
C) a multinational brand. 
D) a global brand. 
E) a meganational brand.

Question 4

Since global marketing is affected by economic considerations, a scan of the global marketplace should include which of the following factors?

Accepted Answer

A) an analysis of cultural diversity within the country under consideration 
B) regulatory constraints regarding contracts, mergers, and partnerships 
C) measurement of consumer income in different countries 
D) an assessment of language differences including dialect variation 
E) political and ideological differences between the countries involved

Question 5

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. These taxes Japan levied are referred to as

Accepted Answer

A) WTO taxes. 
B) quotas. 
C) tariffs. 
D) excise taxes. 
E) subsidies.

Question 6

A global marketer selling consumer products and services must also consider what the average per capita or __________ is among a country's consumers and how the income is distributed to determine a nation's purchasing power.

Accepted Answer

A) buying capacity 
B) currency exchange risk 
C) purchasing power 
D) household income 
E) cost of living

Question 7

The U.S. Commerce Department imposed additional duties of 31 percent to 250 percent on imported photovoltaic products from Chinese solar manufacturers after ruling that they sold them below cost. The Commerce Department took this action in response to what it saw as

Accepted Answer

A) tariff avoidance. 
B) countertrade. 
C) surplus marketing. 
D) underbidding. 
E) dumping.

Question 8

Chapter 7 states that a global perspective on world trade views exports and imports as complementary economic flows. Explain this concept.

Accepted Answer

The answer of Chapter 7 states that a global perspective...

Question 9

Tricon was the restaurant division of PepsiCo until it was spun off in 1997. Since then, Tricon has opened 6,000 KFC restaurants abroad. It has 158 restaurants in Indonesia and more than 500 restaurants in China. All are locally owned and each owner pays a fee to Tricon. Tricon is engaged in

Accepted Answer

A) licensing. 
B) direct exporting. 
C) indirect exporting. 
D) contract manufacturing. 
E) foreign assembly.

Question 10

Nescafé coffee is marketed using different coffee blends and promotional campaigns to match consumer preferences in different countries. For example, Nescafé generally emphasizes the taste, aroma, and warmth of shared moments in its advertising around the world. However, in Thailand, Nescafé is advertised as a way to relax from the pressures of daily life. This is an example of which type of global marketing product and promotion strategy?

Accepted Answer

A) product extension 
B) product customization 
C) product adaptation 
D) dual adaptation 
E) dual integration

Question 11

A global marketing strategy refers to

Accepted Answer

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 toward 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.

Question 12

Consider the distribution channels through which a product manufactured in one country must travel to reach its destination in another country. Which of the following is most likely to involve intermediaries or agents?

Accepted Answer

A) the seller 
B) the seller's international marketing headquarters 
C) channels between nations; channels within a foreign nation 
D) internal channels; external channels 
E) delivery channels; the final consumer

Question 13

Generally, as the proportion of middle-income households in a country __________, the nation's purchasing power increases.

Accepted Answer

A) decreases 
B) increases 
C) levels off 
D) reaches 33 percent of the total population 
E) reaches 50 percent of the total population

Question 14

Frito-Lay produces and markets potato chips in Russia that have seafood flavor. This is an example of which type of global marketing product/promotion strategy?

Accepted Answer

A) product adaptation 
B) product integration 
C) product invention 
D) product customization 
E) product extension

Question 15

A restriction placed on the amount of a product allowed to enter or leave a country is referred to as a(n)

Accepted Answer

A) quota. 
B) tariff. 
C) GATT tax. 
D) subsidy. 
E) excise tax.

Question 16

Before Apple's iPhone 5 was officially for sale in China, it was being sold there. These phones were purchased in the United States and Australia and then resold by unauthorized vendors in China for between $1,700 and $2,000. These products are considered to be part of

Accepted Answer

A) under-the-counter sales. 
B) over-the-counter sales. 
C) the gray market. 
D) integrated global channels. 
E) breaking the distribution monopoly.

Question 17

Why did Dell, Inc., embark on a global growth initiative?

Accepted Answer

A) U.S. sales had decreased. 
B) Dell was recently purchased by Lenovo, a major Chinese competitor. 
C) There was too much competition in Dell's direct-to-consumer marketing channel. 
D) There were fewer restrictions in computer technology outside the United States. 
E) Emerging economies offered significant growth potential.

Question 18

An institution that sets rules governing trade between its members through a panel of trade experts who decide on trade disputes between members and issue binding decisions is referred to as the

Accepted Answer

A) League of Nations. 
B) World Trade Organization (WTO). 
C) Association for Commerce Equity (AC
E) . 
D) United Nations Board of Trade (UNBT). 
E) Global Better Business Bureau (BBB-G).

Question 19

Joint venture refers to

Accepted Answer

A) offering the right to a trademark, patent, trade secret, or similarly valued items of intellectual property in return for a royalty or fee. 
B) contracting with a foreign firm to manufacture products according to certain specifications. 
C) when a foreign company and a local firm invest together to create a local business. 
D) having a company handle its own exports directly, but using intermediaries for importing. 
E) exporting through an intermediary, which often has the knowledge and means to succeed in selling a firm's products abroad.

Question 20

If your primary motive was to raise prices on imports, would you use tariffs or quotas? Why would you want to do this?

Accepted Answer

The answer of If your primary motive was to raise...

Exam 7: Understanding and Reaching Global Consumers and Markets