Question 1

Government taxes on products or services entering a country that primarily serve to raise prices on imports are referred to as

Accepted Answer

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

Question 2

Disney employed a(n)__________ marketing strategy for its Disneyland Paris,particularly when it came to the eateries in the park.These restaurants featured recipes that were revised for local tastes,alcoholic beverages (not permitted in previous parks),and increased outdoor seating.

Accepted Answer

A) global 
B) transnational 
C) multidomestic 
D) meganational 
E) international

Question 3

Figure 7-7 above outlines the distribution channels through which a product manufactured in one country must travel to reach its destination in another country."B" represents the

Accepted Answer

A) channels within foreign nations. 
B) channels between nations. 
C) seller's international marketing headquarters. 
D) political forces. 
E) final consumer.

Question 4

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

Accepted Answer

A) As the largest international marketer,the U.S.accounts for 85 percent of world trade. 
B) World trade refers exclusively to the exchange of money for products or services. 
C) An estimated 35 percent of world trade involves countertrade. 
D) The U.S. ,Western Europe,Canada,China,and Japan together account for more than ⅔ of world trade. 
E) European intratrade is smaller but more powerful than for any of the other world regions.

Question 5

McDonald's sells its popular Maharaja Mac that consists of two all-chicken patties,special sauce,lettuce,cheese,pickles,and onions on a sesame-seed bun in __________.

Accepted Answer

A) Russia 
B) China 
C) Tanzania 
D) Egypt 
E) India

Question 6

As a general rule,__________ seems to work best when the consumer target market for the product is alike across countries and cultures-that is,consumers share the same desires,needs,and use for the product.

Accepted Answer

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

Question 7

Each day,in a third-class carriage of the express train that runs between Bombay and Ahmadabad,plainly dressed couriers carry precious cargo: diamonds.Rough gems are imported to Bombay from dealers in London,Antwerp,Tel Aviv,and New York.Couriers then take these gems to cutting and polishing centers in Gujarat state and then carry them back to Bombay to be reexported to the world.This system,based on trust,secrecy,and skilled low-cost labor,has worked for half a century.It has helped make India the world's premier center for diamond cutting and polishing.Nine out of every 10 stones sold in the world pass through India,making diamonds that country's largest export.India's ability to use its skilled labor as a resource is an example of what Michael Porter would term

Accepted Answer

A) structural conditions. 
B) demand conditions. 
C) factor conditions. 
D) competitive conditions. 
E) socio-cultural conditions.

Question 8

Which form of entry into a foreign market requires the greatest commitment?

Accepted Answer

A) direct exporting 
B) direct investment 
C) joint venture 
D) licensing 
E) indirect exporting

Question 9

One variation of licensing is referred to as

Accepted Answer

A) direct investment. 
B) joint ventures. 
C) direct exporting. 
D) franchising. 
E) dual adaptation.

Question 10

A Tokyo shopkeeper would have been wise to use __________ to verify the accuracy of the new sign in English he purchased for his dry cleaning business.The sign read,"Drop your pants here for best results," which he didn't know had another suggestive meaning to native speakers.

Accepted Answer

A) cultural symbolism 
B) dialect transformation 
C) semantic analysis 
D) linguistic exchange 
E) back translation

Question 11

KFC has added many offerings to its menus in China to appeal to local tastes,including the "Dragon Twister," which is a chicken wrap with Peking-duck sauce.This is an example of which type of global marketing product/promotion strategy?

Accepted Answer

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

Question 12

Collaborative relationships are becoming a common way to meet the demands of global competition.Global __________ are agreements between two or more independent firms to cooperate for the purpose of achieving common goals such as a competitive advantage or customer value creation.

Accepted Answer

A) compacts 
B) collaborative treaties 
C) free trade agreements 
D) economic coalitions 
E) strategic alliances

Question 13

GlaxoSmithKline plc.of Great Britain makes Breathe-Right nasal strips.It sells the same product in many countries because customers all over the world will use them in the same way.This is an example of which type of global marketing product/promotion strategy?

Accepted Answer

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

Question 14

Global companies have five strategies for matching products and their promotion efforts to global markets.The strategy of selling virtually the same product in other countries is referred to as

Accepted Answer

A) product adaptation. 
B) product invention. 
C) brand adaptation. 
D) product extension. 
E) product integration.

Question 15

Another term for a gray market is

Accepted Answer

A) parallel exporting. 
B) back-channel market. 
C) mature marketing. 
D) parallel importing. 
E) transparent market.

Question 16

Which of the following statements about the World Trade Organization (WTO)is most accurate?

Accepted Answer

A) The World Trade organization is a temporary institution. 
B) The 168 member countries of the WTO account for less than 25 percent of world trade. 
C) The WTO sets rules governing trade between its members and the rest of the world. 
D) The WTO uses panels of trade experts who can issue non-binding recommendations. 
E) The WTO was formed by the major industrialized nations of the world.

Question 17

Unilever markets its Snuggle fabric softener differently to different parts of the world.Unilever is a(n)__________ firm.

Accepted Answer

A) ethnocentric 
B) multinational 
C) transnational 
D) global 
E) international

Question 18

According to Figure 7-5 above,points "B" and "C" would most likely represent __________ and __________ options respectively for entering the global marketplace.

Accepted Answer

A) exporting;licensing 
B) licensing;joint venture 
C) joint venture;direct investment 
D) exporting;direct investment 
E) exporting;joint venture

Question 19

Trade among nations or regions depends on political stability.In recent times,billions of dollars have been lost in __________ and __________ as a result of internal political strife,terrorism,and war.

Accepted Answer

A) Russia;Poland 
B) France;Spain 
C) China;Japan 
D) the Middle East;Africa 
E) Germany;the United Kingdom

Question 20

According to Michael Porter's diamond in Figure 7-2 above,quadrant "D" represents

Accepted Answer

A) factor conditions. 
B) related and supporting industries. 
C) demand conditions. 
D) managerial conditions. 
E) company strategy,structure,and rivalry.

Exam 7: Understanding and Reaching Global Consumers and Markets