Deck 3: Thriving in the Marketing Environment: the World Is Flat

Question 1

A backward invention is _ .

A)another meaning to the term of dumping a product into the foreign market
B)when a firm may find it needs to offer a less complex product than it sells elsewhere
C)when a firm first markets a product internationally and then brings this product into the homeland
D)a nonexistent term in marketing
E)an example of a straight extension strategy

Answer 1

B

Question 2

A least developed country (LDC).

A)has a large number of entrepreneurs
B)has an economy based on agriculture
C)has an advanced economic infrastructure
D)is by definition landlocked
E)has a visible middle class

Answer 2

B

Question 3

A maker of cash registers had to develop hand- crank- operated cash registers to sell to Latin American and African countries where electricity is a luxury.The company used a strategy to enter those global markets.

A)product invention
B)localization
C)product adaptation
D)domestication
E)straight extension

Answer 3

A

Question 4

The was developed to eliminate monopolies and to guarantee free competition.

A)Lanham Act
B)Clayton Act
C)Wheeler- Lea Act
D)Robinson- Patman Act
E)Sherman Antitrust Act

Question 5

To successfully market the Corvette to the European market,General Motors had to make the automobile shorter and narrower.GM chose to use a strategy with the Corvette.

A)domestication
B)product invention
C)product adaptation
D)localization
E)straight extension

Question 6

An increasing number of firms around the globe engage in activities,the process of gathering and analyzing publicly available information about rivals.

A)competitive intelligence
B)standard of living
C)demographic
D)economic infrastructure
E)economic research

Question 7

is the tendency to prefer products or people of one's own culture over those from other countries.

A)Ethnocentrism
B)Expropriation
C)Democratization
D)Nationalization
E)Domestication

Question 8

Marketers engage in competition in which competitors offer different products attempting to satisfy the same consumers' needs and wants.

A)oligopolistic
B)discretionary income
C)product
D)monopolistic
E)brand

Question 9

Which of the following statements about world trade is NOT true?

A)World trade activity is decreasing.
B)World trade refers to the flow of goods and services among different countries.
C)Not all countries participate equally in world trade.
D)World trade activity is steadily increasing year to year.
E)World trade refers to the value of all exports and imports of the world's nations.

Question 10

The ,a United States regulatory agency enforces regulation that has a major impact on a manufacturer's materials and processes.

A)Consumer Product Safety Commission
B)Federal Trade Commission
C)Federal Communications Commission
D)Food and Drug Administration
E)Environmental Protection Agency

Question 11

The most commonly used measure of economic health of a country is the .

A)stock market
B)average price of the same product over one year
C)gross national product (GNP)
D)gross domestic product (GDP)
E)cost of living

Question 12

The Act (1990)Limits the amount of commercials aired on children's programs..

A)Robinson- Patman
B)Nutrition Labeling and Education
C)Consumer Products Safety Commission
D)Children's Television
E)National Do Not Call Registry

Question 13

To successfully market the Corvette to the European market,General Motors had to make the automobile shorter and narrower.GM chose to use a strategy with the Corvette.

A)straight extension
B)localization
C)product invention
D)domestication
E)product adaptation

Question 14

France,Italy,and Germany boast sophisticated marketing systems and are three good examples of .

A)traditional societies
B)developing countries
C)developed countries
D)preindustrial countries
E)less developed countries (LDCs)

Question 15

In the macroenvironment there are several structures of industries.In a(n)structure,there are many sellers,each having slightly different products,with unique customer benefits.

A)perfect competition
B)oligopoly
C)natural competition
D)monopolistic completion
E)monopoly

Question 16

Wrigley's chewing gum is the same product whether you buy it in Japan,Great Britain,Brazil,or the United States.Wrigley's sells the same products around the world.It has adopted a(n)_ strategy.

A)product invention
B)ethnocentric
C)straight extension
D)localization
E)product adaptation

Question 17

The environment refers to the characteristics of a society,the people who live in the society,and the culture that reflects the values and beliefs of the society.

A)economic
B)natural
C)technological
D)political and legal
E)sociocultural

Question 18

U)S.sugar import quotas have existed for more than fifty years and preserve about half of the U.S.sugar market for domestic producers.Why does the United States continue to have these quotas?

A)to support a mass market for sugar
B)to control the supply and demand for sugar
C)to increase the cost of sugar
D)to improve the promotion of sugar
E)to reduce competition for its domestic sugar industry

Question 19

Because consumers cannot buy everything and anything,marketers engage in competition.Marketers compete for the amount of money people have left after paying for necessities such as housing,utilities,food,and clothing.

A)product
B)monopolistic
C)brand
D)economic research
E)discretionary income

Question 20

The prohibits price discrimination unless cost- justified.

A)Lanham Act
B)Sherman Antitrust Act
C)Clayton Act
D)Wheeler- Lea Act
E)Robinson- Patman Act

Question 21

The population of Djibouti is approximately 460,700.To serve the communication needs of this nation,there is one Internet service provider,two AM radio stations,two FM radio stations,and one television station.There are only 8,000 telephone lines in the whole country.This is a partial description of Djibouti's .

A)level of commercialization
B)gross domestic product (GDP)
C)net national product (NNP)
D)economic liquidity
E)economic infrastructure

Question 22

Trading firms are practicing when they work out elaborate deals in which they trade or barter their products with one another or even supply goods in return for tax breaks from the local government.

A)gray marketing
B)cause marketing
C)countertrade
D)puffery
E)cultural

Question 23

A _ is a norm regarding everyday life.These rules deal with the subtleties of consumer behavior including the "correct" way to wear one's clothes or host a dinner party.

A)custom
B)convention
C)code of ethics
D)VALS
E)habit

Question 24

Marketers engage in competition in which competitors offer similar products and vie for consumer dollars.

A)monopolistic
B)discretionary income
C)product
D)brand
E)oligopolistic

Question 25

Several Arab nations completely prohibit the importation of Coca- Cola because it maintains distributors in Israel.The Arab nations have instituted a(n)against Coke.

A)gray tax
B)export prohibition
C)supply- based infrastructure
D)barrier to entry
E)embargo

Question 26

Wrigley's chewing gum is the same product whether you buy it in Japan,Great Britain,Brazil,or the United States.Wrigley's sells the same products around the world.It has adopted a(n)_ strategy.

A)ethnocentric
B)product adaptation
C)straight extension
D)product invention
E)localization

Question 27

A _ exists when an unauthorized party imports products and then sells them for a fraction of the price of authorized products.

A)gray market
B)black market
C)disintermediation system
D)dual distribution system
E)dumping ground

Question 28

In the macroenvironment there are several structures of industries.In a(n)structure,there are many small sellers,each having similar products,and are unable to have an impact on the quality,price,or supply of a product.

A)oligopoly
B)monopoly
C)natural competition
D)perfect competition
E)monopolistic competition

Question 29

The members of the organization MERCOSUR are located in _.

A)Africa
B)South America
C)North America
D)Southeast Asia
E)the British Isles

Question 30

The Act (1972)created the regulatory agency to monitor and recall unsafe products and set product safety standards.

A)Nutrition Labeling and Education
B)Children's Television
C)Robinson- Patman
D)Consumer Products Safety Commission
E)National Do Not Call Registry

Question 31

The ViVi brand is a line of designer clothing for pregnant businesswomen.If its owner believes that professional women in other countries have a need for conservative maternity wear,the small company could hire a(n)_ to locate and negotiate with buyers in other countries.

A)limited- service wholesaler
B)purchasing agent
C)material handler
D)import facilitator
E)export merchant

Question 32

The North American Free Trade Agreement (NAFTA).

A)has the United States,Alaska,and Ecuador as members
B)is the world's smallest economic community
C)has only three members
D)will never be expanded to include other members
E)is one of the few such organizations that has been free of controversy

Question 33

Some organizations have become major influences on world trade.The has become a referee for trade through a series of trade negotiations that set standards for how much countries are allowed to favor their own goods and services.

A)GATT
B)World Trade Organization
C)United Nations
D)economic community
E)import quota

Question 34

According to one international advertising agency representative,"You can't show a goldfish in a goldfish bowl in Germany because of the national support of animal rights." The agency representative is referring to a(n).

A)ethnocentric attitude
B)cultural value
C)international marketing dilemma
D)cultural aberration
E)domestic barrier

Question 35

Which of the following is a form of protectionism?

A)disintermediation
B)local content rules
C)direct investment opportunities
D)comparative advertising
E)parliamentarian laws

Question 36

In the cultures people tend to attach more importance to personal goals than to those of the larger community.

A)democratic
B)economic
C)individualist
D)sociocultural
E)collectivist

Question 37

In a ,a firm gives another firm the right to produce and market its product in a specific country or region in return for royalties.

A)marketing mix alliance
B)joint venture
C)franchising agreement
D)direct investment
E)licensing agreement

Question 38

U.S.marketing campaigns that stress the desirability of "Made in America" products are more likely to appeal to _ U.S.consumers.

A)ethnocentric
B)naturalized
C)expatriated
D)domesticated
E)semiotic

Question 39

All of the following are barriers to successful exporting EXCEPT .

A)import quotas
B)export merchants
C)economic sanctions
D)local content laws
E)tariffs

Question 40

A group of eBay employees developed an on- line marketplace to help small producers gain access to global customers.To start up the new concept eBay considered the options of customizing the existing eBay shopping experience,creating a completely separate branded market place,or creating a hybrid model that combined the first two options.For eBay this is a _ strategy decision.

A)pricing
B)social
C)promotion
D)product

Question 41

The refers to the quality of a country's distribution,financial,and communication systems.

A)economic liquidity
B)level of commercialization
C)net national product (NNP)
D)economic infrastructure
E)gross domestic product (GDP)

Question 42

The ,a United States regulatory agency,enforces laws and regulations of foods,drugs,cosmetics and veterinary products.Marketers of pharmaceuticals must get approval from this agency before they can introduce products to the market.

A)Federal Communications Commission
B)Food and Drug Administration
C)Federal Trade Commission
D)Food and Drug Administration
E)Environmental Protection Agency

Question 43

Expropriation occurs when .

A)a government takes over foreign operations and provides the seized operation with no reimbursement
B)domestic companies export more than they sell within national borders
C)a nation imports more than it exports
D)a government reimburses a foreign company that has lost facilities due to natural causes
E)a government refuses to allow its businesses to engage in exporting

Question 44

Some countries outlaw ,a practice in which a company prices its products lower than they are priced at home.

A)parallel importing
B)dumping
C)black marketing
D)countertrading
E)gray marketing

Question 45

The ,a United States regulatory agency,regulates telephone,radio,and television.This effects all firms that use broadcast media.

A)Environmental Protection Agency
B)Federal Trade Commission
C)Federal Communications Commission
D)Food and Drug Administration
E)Consumer Product Safety Commission

Question 46

Estonia,a past member of the Soviet Union,is a developing country.This means .

A)it has an economy based on providing services
B)it has a middle class composed primarily of entrepreneurs
C)its use of technology is very limited
D)the nation has an economy based on agriculture
E)the nation's wealth is in the hands of a few

Question 47

A firm's decisions when selling in a foreign market are straight extension,adaptation,and innovation.

A)marketing mix
B)distribution
C)advertising
D)brand
E)product

Question 48

are statistics that measure aspects of population,such as size,age,and gender.

A)Demographics
B)Mores
C)Semiotics
D)Expatriates
E)Standards

Question 49

In the international market,franchising is a form of _ _.

A)tactical alliance
B)joint venture
C)importing
D)direct investment
E)licensing

Question 50

A backward invention is _ .

A)when a firm first markets a product internationally and then brings this product into the homeland
B)another meaning to the term of dumping a product into the foreign market
C)an example of a straight extension strategy
D)a nonexistent term in marketing
E)when a firm may find it needs to offer a less complex product than it sells elsewhere

Question 51

That which does not apply to direct investment .

A)relies on intermediaries to represent the company in a target country
B)allows a foreign firm to take advantage of a domestic company's political savvy
C)represents the greatest control for the firm
D)creates a market position in the host country
E)could cause the firm to suffer losses of their investment if economic conditions deteriorate

Question 52

In the macroenvironment there are several structures of industries.In a(n)structure,there are a relatively small number of sellers,each holding substantial market share,in a market with many buyers.

A)natural competition
B)monopoly
C)perfect competition
D)oligopoly
E)monopolistic competition

Question 53

In the _ cultures people subordinate their personal goals to those of a stable community.

A)ethnocentric
B)collectivist
C)economic
D)individualist
E)democratic

Question 54

The Act (1946)protects and regulates brand names.

A)Robinson- Patman
B)Fair Packaging and Labeling
C)Federal Trade Commission
D)Consumer Protection
E)Lanham Trademark

Question 55

A _ exists when an unauthorized party imports products and then sells them for a fraction of the price of authorized products.

A)gray market
B)disintermediation system
C)dual distribution system
D)dumping ground
E)black market

Question 56

The Tim Horwe chain accounts for more than half of all the donut and coffee stores in Canada.The chain's red- and- white store banners are fixtures in many Canadian communities.In 2001,the first Tim Howens appeared in the United States.Tim Howens is owned by Werry's International,another successful example of a(n).

A)joint venture
B)export merchant
C)direct investor
D)franchisee
E)franchisor

Question 57

A severe recession is a depression,a period in which prices fall but there is little demand because few people have money to spend and many are out of work.This condition is part of the .

A)environmental protection law
B)business cycle
C)local content rule
D)export quota
E)80/20 rule

Question 58

The amount of trade is greatest between North America and .

A)Asia
B)South America
C)Europe
D)The Middle East
E)Africa

Question 59

The measurable quality of a country's distribution,financial,and communication systems are referred to as its _.

A)ethnocentrism
B)economic infrastructure
C)standard of living
D)foreign trade benefits
E)norms and customs

Question 60

The ,a United States regulatory agency,enforces laws against deceptive advertising and pertaining to product labeling regulations.

A)Environmental Protection Agency
B)Federal Communications Commission
C)Food and Drug Administration
D)Federal Trade Commission
E)Consumer Product Safety Commission

Question 61

In some cultures,the act of adultery is a violation of the of the culture,and a person found guilty of adultery can be executed.

A)ethical dilemmas
B)mores
C)cultural edicts
D)nationalized conventions
E)expropriated rules

Question 62

Firms seeking a deeper commitment to a foreign market than is possible with exporting or contractual agreements develop _ with one or more domestic firms in the target market.

A)product- orientated relationships
B)transactional relationships
C)strategic alliances
D)exchange relationships
E)expropriation agreements

Question 63

Kyrgyzstan is a small,poor,mountainous country with a predominately agricultural economy.Cotton,wool,and meat are the main agricultural products and exports.Fifty- one percent of the population lives in poverty.Kyrgyzstan is an example of a(n).

A)least developed country (LDC)
B)traditional society
C)industrializing country
D)preindustrial country
E)developed country

Question 64

Firms are constantly scanning the environment in search of ideas and trends that can spark their own research efforts.Sometimes an idea can transform an industry,like the transistors revolutionizing the field of consumer electronics.

A)political and legal
B)sociocultural
C)economic
D)natural
E)technological

Question 65

Capital Radio PLC,the UK's biggest commercial radio firm announced in 2002 that it would partner with Walt Disney Company to create a radio network for English- speaking children under the age of sixteen.The new company created by this agreement is an example of a(n).

A)networking arrangement
B)transactional relationship
C)joint venture
D)tactical alliance
E)exchange relationship

Question 66

The makes deceptive and misleading advertising illegal.

A)Sherman Antitrust Act
B)Robinson- Patman Act
C)Clayton Act
D)Lanham Act
E)Wheeler- Lea Act

Question 67

NAFTA is a(n).

A)economic community that includes Peru,Brazil,and China
B)eastern European economic community that competes with the EU
C)common market for eastern and southern Africa
D)trade agreement that includes Canada,Mexico and the United States
E)South American economic community

Question 68

Marketers need to understand the environment from two perspectives: the overall health and level of development of a country and the current stage of its business cycle.

A)political and legal
B)sociocultural
C)natural
D)technological
E)economic

Question 69

A firm's decisions when selling in a foreign market are straight extension,adaptation,and innovation.

A)product
B)brand
C)marketing mix
D)advertising
E)distribution

Question 70

The environment refers to the local,state,national,and global laws and regulations that affect businesses.

A)technological
B)political and legal
C)economic
D)sociocultural
E)natural

Question 71

The Act (1968)requires full disclosure of loan terms and rates for borrowers.

A)Lanham Trademark
B)Federal Trade Commission
C)Robinson- Patman
D)Fair Packaging and Labeling
E)Consumer Credit Protection

Question 72

A maker of cash registers had to develop hand- crank- operated cash registers to sell to Latin American and African countries where electricity is a luxury.The company used a strategy to enter those global markets.

A)localization
B)domestication
C)straight extension
D)product invention
E)product adaptation

Question 73

U.S.sugar import quotas have existed for more than fifty years and preserve about half of the U.S.sugar market for domestic producers.These quotas are examples of .

A)disintermediation
B)protectionism
C)a political asylum
D)world- centrism
E)synergistic manipulation

Question 74

The prohibits tying contracts and exclusive dealing if it restricts competition.

A)Lanham Act
B)Robinson- Patman Act
C)Sherman Antitrust Act
D)Wheeler- Lea Act
E)Clayton Act

Question 75

The Act (2003)was established by the Federal Trade Commission to allow consumers to limit the number of telemarketing calls they receive.

A)Robinson- Patman
B)Children's Television
C)National Do Not Call Registry
D)Nutrition Labeling and Education
E)Consumer Products Safety Commission

Question 76

In some cases a government adopts a policy of in which it enforces rules on foreign firms designed to give home companies an advantage.

A)slotting allowance
B)countertrade
C)green marketing
D)protectionism
E)bribery

Question 77

Small firms that wish to export their products may choose to use who understand the local market and can find buyers and negotiate terms.

A)purchasing agents
B)material handlers
C)import facilitators
D)export merchants
E)limited- service wholesalers

Question 78

In February 2000,the United States imposed a tax on imported steel in an effort to protect about 5,000 U.S.jobs.Another name for this levied tax is a(n)_ .

A)boycott
B)gray tax
C)import quota
D)tariff
E)embargo

Question 79

A(n)is an extreme form of quota that prevents the importing of specified foreign goods completely.

A)gray tax
B)supply- based infrastructure
C)barrier to trade
D)embargo
E)export prohibition

Question 80

The ,a United States regulatory agency,protects the public from potentially hazardous products.

A)Federal Communications Commission
B)Food and Drug Administration
C)Consumer Product Safety Commission
D)Federal Trade Commission
E)Environmental Protection Agency