Question 1

What is a multinational corporation? Discuss two multinational corporations with which you are familiar.

Accepted Answer

The answer of What is a multinational corporation? Discuss two...

Question 2

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 3

To enter the Chinese market,Walmart purchased the general merchandise chain Trust-Mart for about $1 billion.Walmart entered the Chinese market through the use of:

Accepted Answer

A)  contract marketing 
B)  direct foreign investment 
C)  franchising 
D)  direct exporting 
E)  countertrading

Question 4

Why is developing a global vision important for firms in the United States?

Accepted Answer

The answer of Why is developing a global vision important...

Question 5

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 6

Assume that you are the marketing manager for a leading U.S.manufacturer of earthmoving equipment.Your company would like to become heavily involved in global marketing (especially in India)but has some capital limitations.Your job is to evaluate whether it should use contract manufacturing or direct foreign investment.Compare and contrast these two options and make a recommendation.

Accepted Answer

The answer of Assume that you are the marketing manager...

Question 7

An important factor in the global external environment that has become more evident in the past decade is the shortage of natural resources.Choose two different natural resources and describe how shortages of each of these resources affect global trade.

Accepted Answer

The answer of An important factor in the global external...

Question 8

In the context of global marketing,product invention can be taken to mean either creating a new product for a market or drastically changing an existing product.

Accepted Answer

A) True 
 B)False

Question 9

Who offers low-interest loans to developing nations?

Accepted Answer

A)  World Bank 
B)  International Monetary Fund 
C)  Federal Reserve 
D)  International Reserve 
E)  United Nations

Question 10

Sony,Panasonic,and other Japanese manufacturers that build products to customer order instead of churning out products in anticipation of demand have decided to hire U.S.companies to produce electronics for them.The Japanese companies will handle the marketing of the products.Japanese electronics companies are using:

Accepted Answer

A)  contract manufacturing. 
B)  direct investment. 
C)  franchising. 
D)  direct exporting. 
E)  countertrading.

Question 11

Briefly define licensing and joint ventures as means of engaging in global marketing.Be sure to demonstrate both the similarities of the two processes and how they differ.

Accepted Answer

The answer of Briefly define licensing and joint ventures as...

Question 12

Consumers purchasing an automobile in Hong Kong must pay a 100 percent tax on it.This tax is imposed by the government on all automobiles entering the country and is called a(n):

Accepted Answer

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

Question 13

The European Union Commission and the courts have come under widespread criticism for "rubber-stamping" or approving most business deals involving U.S.multinationals.

Accepted Answer

A) True 
 B)False

Question 14

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.Nestlé has utilized a global vision in marketing Kit Kat bars throughout the world.The company realizes different countries require different strategies but that effective global marketing is a key to success.Nestlé is practicing:

Accepted Answer

A)  global marketing. 
B)  standard international marketing. 
C)  global marketing standardization. 
D)  the foreign vision. 
E)  international selling schemes.

Question 15

Which method of entering the global marketplace would be LEAST risky?

Accepted Answer

A)  Exporting 
B)  Licensing 
C)  Contract manufacturing 
D)  Joint ventures 
E)  Direct investment

Question 16

The total market value of all final goods and services produced in a country for a given time period is called:

Accepted Answer

A)  the exchange rate 
B)  gross domestic product (GDP) 
C)  the trade balance 
D)  gross national product (GNP) 
E)  gross operating surplus (GOS)

Question 17

The goal of the Central America Free Trade Agreement is to:

Accepted Answer

A)  create free trade agreements between the United States and other industrialized nations. 
B)  eliminate all protectionism. 
C)  raise prosperity levels in all industrializing nations. 
D)  establish a free trade agreement between the United States and certain Latin American countries. 
E)  make sure all nations achieve the economic and technological development of a takeover economy or better.

Question 18

Franchising is a form of:

Accepted Answer

A)  contract marketing 
B)  international exporting 
C)  licensing 
D)  direct exporting 
E)  countertrading

Exam 9: Developing a Global Vision

What is a multinational corporation? Discuss two multinational corporations with which you are familiar.

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

To enter the Chinese market,Walmart purchased the general merchandise chain Trust-Mart for about $1 billion.Walmart entered the Chinese market through the use of:

Why is developing a global vision important for firms in the United States?

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

An important factor in the global external environment that has become more evident in the past decade is the shortage of natural resources.Choose two different natural resources and describe how shortages of each of these resources affect global trade.

In the context of global marketing,product invention can be taken to mean either creating a new product for a market or drastically changing an existing product.

Who offers low-interest loans to developing nations?

Briefly define licensing and joint ventures as means of engaging in global marketing.Be sure to demonstrate both the similarities of the two processes and how they differ.

Consumers purchasing an automobile in Hong Kong must pay a 100 percent tax on it.This tax is imposed by the government on all automobiles entering the country and is called a(n) :

The European Union Commission and the courts have come under widespread criticism for "rubber-stamping" or approving most business deals involving U.S.multinationals.

Which method of entering the global marketplace would be LEAST risky?

The total market value of all final goods and services produced in a country for a given time period is called:

The goal of the Central America Free Trade Agreement is to:

Franchising is a form of: