Question 1

The Dutch lead the world in the cut-flower industry because of their research in flower cultivation,packaging,and shipping.Using this knowledge as a resource is an example of what Michael Porter would term

Accepted Answer

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

Question 2

Two carmakers have developed a strange but successful partnership.Ford,a U.S.automaker,and Mazda,an Asian carmaker,have collaborated on several models,including the Explorer,the Probe,the Mazda 323,and the Mazda MX-6.The U.S.automaker has supplied Mazda with help in marketing,finance,and styling.In return,Mazda has provided manufacturing and product development expertise to Ford.Both companies have worked together toward a common goal and both have benefited as a result of their

Accepted Answer

A) strategic alliance. 
B) international contract. 
C) free trade agreement. 
D) collaborative treaty. 
E) global oligopoly.

Question 3

The Economic Espionage Act

Accepted Answer

A) allows the World Court in The Hague to adjudicate trade disputes on behalf of United Nations' members and requires the home country to impose any penalties. 
B) imposes a personal fine on a convicted U.S.citizen of up to $10 million. 
C) targets espionage activities that are commonplace in any industry that holds governmental contracts. 
D) makes the theft of trade secrets by foreign entities a federal crime in the U.S. 
E) is well-intended in theory,but is virtually impossible to enforce.

Question 4

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 women sell Lever products to 600,000 consumers 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) currency exchange.

Question 5

A firm's profit potential and control over marketing activities __________ as it moves from exporting to direct investment as a global market-entry strategy.

Accepted Answer

A) becomes more stable 
B) increases 
C) levels off 
D) decreases 
E) becomes more unpredictable

Question 6

Nine out of every 10 diamonds sold in the world pass through India,making diamonds that country's largest export at $6.6 billion a year.One of the reasons for its success is the nation's 2,500 trading firms,banks,airlines,customers' offices,and courier services that make sure the diamonds are safely delivered.According to Michael Porter's theory about national competitive advantage,India's success in the diamond industry is due in part to its

Accepted Answer

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

Question 7

Balance of trade refers to

Accepted Answer

A) the sum of all a nation's imports and exports. 
B) the difference between the monetary value of a nation's exports and imports. 
C) the comparison of total exports from one country to another. 
D) the difference between projected sales and actual sales for a nation's exports. 
E) the state of equilibrium when two neighboring nations participate in countertrade.

Question 8

Tariffs refer to

Accepted Answer

A) government payments to companies or industries that primarily serve to create competitive advantage for domestic products. 
B) government taxes on products or services entering a country that primarily serve to raise prices on imports. 
C) a restriction placed on the amount of a product allowed to enter or leave a country. 
D) a minimum requirement for the purchase between two or more nations of products or services. 
E) a refusal to purchase or exchange products or services with another nation unless certain financial or ideological requirements have been satisfied.

Question 9

A situation where products are bought in a lower-priced country from a manufacturer's authorized reseller,shipped to higher-priced countries,and then sold through unauthorized retailers below the manufacturer's suggested retail price is referred to as __________.

Accepted Answer

A) the black market 
B) a gray market 
C) dumping 
D) a globalized market 
E) parallel exporting

Question 10

For the marketer,a thorough __________ involves an understanding of and an appreciation for the values,customs,symbols,and language of other societies.

Accepted Answer

A) market synthesis 
B) international sociographic study 
C) anthropological examination 
D) cross-cultural analysis 
E) ethnocentrism assessment

Question 11

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 12

Global competition exists when

Accepted Answer

A) a firm produces and markets its products domestically rather than globally. 
B) firms originate,produce,and market their products and services worldwide. 
C) two firms from two different countries compete for market share in a single domestic market. 
D) two or more firms from different nations combine their resources to market products in a single domestic market. 
E) the firm from one nation dominates the market for its product in every nation.

Question 13

Tiffany & Company knows that Japanese are superstitious about the number 4.As a result,Tiffany sells its fine glassware and china in sets of five,not four,in Japan.Tiffany has used its knowledge of __________ to avoid connecting its products with the number 4.

Accepted Answer

A) trademarks 
B) visual icons 
C) cultural symbols 
D) brand names 
E) ethnic emblems

Question 14

According to Figure 7-1 above,which of the following countries is the world's leading exporter?

Accepted Answer

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

Question 15

The Foreign Corrupt Practices Act

Accepted Answer

A) makes it a crime for U.S.corporations to bribe an official of a foreign government or political party to obtain or retain business in a foreign country. 
B) has different levels of punishment based upon the wealth of the host nation. 
C) regulates only the behavior of U.S.businesses conducting business within the United States. 
D) makes the theft of trade secrets by foreign entities a federal crime in the United States. 
E) is a unilateral agreement the United States made with several developing nations.

Question 16

S.appliance manufacturers find that different customs about shopping must be used to determine product design.For instance,people in Northern Europe shop only once a week,so they need bigger refrigerators than Southern Europeans,who shop daily.Furthermore,Northern Europeans insist that freezers should be on the top just as firmly as Southern Europeans insist that freezers should be on the bottom.Consumers in other regions use their appliances differently and have other different product demands.Given this information,you should conclude U.S.appliance manufacturers would be more likely successful if they used a(n)__________ marketing strategy.

Accepted Answer

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

Question 17

Which of the following statements about the emergence of a networked global marketspace is most accurate?

Accepted Answer

A) Marketspace creates an unfair competitive environment for emerging nations. 
B) More business-to-consumer marketing is done on the Internet than business-to-business marketing. 
C) The most active participants in the networked global marketspace are companies in developing nations. 
D) All business in the networked global marketspace is conducted in English. 
E) The chief advantage of the global marketspace over the traditional bricks-and-mortar stores for customers is the ability to shop anywhere,at any time,and at a lower cost.

Question 18

Consider the Kit Kat bar photo above.Kit Kat bars are marketed by Nestlé worldwide.Kit Kat is pronounced "kitto katsu" in Japanese,which roughly translates to "surely win." Japanese teens eat Kit Kat bars for good luck,particularly when taking crucial school exams.This positive result might have been eliminated had the company used __________ and felt in necessary to use a name without an additional meaning.

Accepted Answer

A) intentional transliteration 
B) semantic symbolism 
C) back translation 
D) semantic analysis 
E) linguistic exchange

Question 19

The EU has benefited its member nations because firms do not need to market their products and services on a nation-by-nation basis;most tariffs that affect pricing practices have been removed,and

Accepted Answer

A) there is a legally binding code of economic conduct. 
B) there is immunity against world recessions. 
C) here are fewer regulatory restrictions on transportation,advertising,and promotion. 
D) there is a common language advantage among EU consumers. 
E) most companies within the EU are engaging in strategic global partnerships.

Question 20

Play devil's advocate.Select any American industry and argue persuasively why protectionism is not only patriotic,it is absolutely essential for survival.

Accepted Answer

The answer of Play devil's advocate.Select any American industry and...

Exam 7: Understanding and Reaching Global Consumers and Markets