Question 1

Licensing 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 country and a local firm invest together to create a local business. 
D)  having a company handle its own exports directly without intermediaries. 
E)  exporting through an intermediary, which often has the knowledge and means to succeed in selling a firm's product abroad.

Question 2

Which of the following statements reflects Michael Porter's theory regarding national competitive advantage?

Accepted Answer

A)  Clusters of strong suppliers can interfere with entry into a global market. 
B)  A firm that succeeds in global markets has often left a domestic market because it was too competitive. 
C)  A country's natural resources, education, and infrastructure can be turned into a competitive advantage. 
D)  The first goal of a global marketer is to actively educate a nation's domestic customers. 
E)  A nation's domestic workforce is more motivated to work for foreign corporations than its own.

Question 3

Since global marketing is affected by economic considerations,a scan of the global marketplace should include this factor:

Accepted Answer

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

Question 4

terms of the global marketplace,there are three primary types of companies: (1)international firms; (2)multinational firms; and (3)transnational firms.The key factor that distinguishes one from another is

Accepted Answer

A)  the firm's financial capacity to take risks. 
B)  the willingness and ability to embrace diversity. 
C)  the firm's orientation toward and strategy for global markets and marketing. 
D)  the relative position of the product or service in terms of its life cycle. 
E)  the relative size of the firm both in financial terms and in production capacity.

Question 5

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

Accepted Answer

A)  increases; greater 
B)  increases; less 
C)  decreases; greater 
D)  levels off; greater 
E)  There is no relationship between middle-income households and the nation's purchasing power.

Question 6

practice of offering small,collateral-free loans to individuals who otherwise would not have access to the capital necessary to begin small businesses or other income-generating activities,is referred to as

Accepted Answer

A)  macrofinance. 
B)  microfinance. 
C)  microcapitalization. 
D)  macrocapitalization. 
E)  megafinance.

Question 7

Which of the following statements regarding global brands is most accurate?

Accepted Answer

A)  A global brand has dispersed marketing centers, each of which is responsible for a specific region. 
B)  A global brand is marketed under the same name in multiple countries. 
C)  A global brand alters the product formulation or service for each geographical region. 
D)  A global brand delivers multiple benefits based on the GDP of each country. 
E)  A global brand is a collaborative effort among several different national firms.

Question 8

Which of the following countries is the world's leading exporter?

Accepted Answer

A)  United States 
B)  China 
C)  India 
D)  Germany 
E)  Japan

Question 9

practice of using barter rather than money for making global sales is referred to as

Accepted Answer

A)  trade balancing. 
B)  tariffs. 
C)  the trade feedback effect. 
D)  countertrade. 
E)  currency forbearance.

Question 10

Hindustan Lever realized it could not sell to the rural poor in India unless it found ways to distribute its products such as soap,shampoos,and laundry detergents.Lever provided start-up loans to women to buy stocks of products to sell to local villagers.Today,over 45,000 poor women sell Lever products in 135,000 villages in India.This is an example of Lever's use of

Accepted Answer

A)  macrofinance. 
B)  macrocapitalization. 
C)  microfinance. 
D)  microcapitalization. 
E)  megafinance.

Question 11

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 product abroad.

Question 12

Which of the following statements about world trade flows is most accurate?

Accepted Answer

A)  The United States is tied with China and Japan as the world's leaders in exports. 
B)  The U.S. percentage share of world exports has shifted downwards over the past 30 years. 
C)  The United States has maintained a steady percentage share of world imports. 
D)  The United States' relative role as an exporter has decreased in the area of aerospace during the past five years. 
E)  The relative position of the United States as a supplier to the world has increased because of an absolute growth in exports.

Question 13

Companies that contract with a foreign firm to manufacture products according to stated specifications are using

Accepted Answer

A)  direct exporting. 
B)  indirect exporting. 
C)  joint ventures. 
D)  contract manufacturing. 
E)  contract assembly.

Question 14

Identify and describe the factors a company should consider in order to do a thorough cross-cultural analysis.In your answer,be sure to define cross-cultural analysis.

Accepted Answer

The answer of Identify and describe the factors a company...

Question 15

trends have significantly affected world trade and global marketing.The use of __________ as a tool for exchanging goods,services,and information on a global scale is the fourth trend affecting world trade.

Accepted Answer

A)  telephone communications 
B)  Internet technology 
C)  language translators 
D)  tariff and quota policies 
E)  multinational marketing strategies

Question 16

practice of shielding one or more sectors of a country's economy from foreign competition through the use of tariffs or quotas is referred to as

Accepted Answer

A)  domestic imperialism. 
B)  protectionism. 
C)  blocked competition. 
D)  import taxation. 
E)  trade restrictions.

Question 17

strategy transnational firms employ that standardizes marketing activities when there are cultural similarities and adapts them when cultures differ is referred to as a(n)

Accepted Answer

A)  global marketing strategy. 
B)  integrated marketing strategy. 
C)  transnational marketing strategy. 
D)  meganational marketing strategy. 
E)  international marketing strategy.

Question 18

global brand is a brand marketed under the same name in multiple countries with similar and centrally coordinated marketing programs.However,adaptations of global brands are made

Accepted Answer

A)  if required by government regulations in the host market and for no other reason. 
B)  only in its initial introduction into a market and only until the brand is recognized. 
C)  by domestic competitors causing brand confusion and loss of market share. 
D)  only when necessary to better connect the brand to consumers in different markets. 
E)  when there is a serious drop in market share.

Question 19

a company has decided to enter the global marketplace,it must select a means of market entry.Four general options exist: (1)exporting; (2)__________; (3)joint venture; and (4)direct investment.

Accepted Answer

A)  macrofinancing 
B)  microfinancing 
C)  franchising 
D)  licensing 
E)  collateral

Question 20

administrative,marketing,and manufacturing operations that many international firms,multinational firms,and transnational firms have around the world are often called

Accepted Answer

A)  divisions. 
B)  outlets. 
C)  departments. 
D)  markets. 
E)  holding companies.

Exam 7: Understanding and Reaching Global Consumers and Markets