Question 1

Figure 7-8 above, identifies 5 global product and promotion strategies a company can use when marketing to different countries.Name and describe each of these five strategies (A, B, C, D, and E).

Accepted Answer

Product extension strategy (A) - selling...

Question 2

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 153 member countries of the WTO account for more than 97 percent of world trade.
C)  The WTO sets rules governing trade between its members and the remainder of the world.
D)  The WTO uses panels of trade experts who can issue non-binding recommendations.
E)  The WTO was formed by the United Nations.F) A) and B)
G) B) and E)

Question 3

In Latvia, the only six-lane highway connects Riga with Moscow.Otherwise, the roads are two-lane and many are made of cobblestones or bricks.This limits the speed with which deliveries can be made and means that delivery trucks must be quite small.The road network in Latvia is an example of its

Accepted Answer

A)  capital infrastructure.
B)  political infrastructure.
C)  economic infrastructure.
D)  geopolitical network.
E)  ecosystem.F) A) and B)
G) A) and C)

Question 4

Four 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 strategiesF) D) and E)
G) A) and B)

Question 5

When a firm sells its domestically produced goods in a foreign country through an intermediary, it is referred to as

Accepted Answer

A)  direct exporting.
B)  indirect exporting.
C)  licensing.
D)  contract manufacturing.
E)  foreign assembly.F) A) and B)
G) B) and D)

Question 6

What is the term for a firm selling a product in a foreign country below its domestic price or below its actual cost?

Accepted Answer

A)  dumping
B)  surplus marketing
C)  second-market pricing
D)  channeling
E)  entrepreneurial pricingF) A) and B)
G) A) and C)

Question 7

There are __________ World Trade Organization countries, including the United States, which account for more than 97 percent of world trade.

Accepted Answer

A)  37
B)  52
C)  97
D)  113
E)  153F) A) and C)
G) A) and B)

Question 8

FIGURE 7-8 
-According to Figure 7-8 above, cell "A" refers to which type of product and promotion strategy?

Accepted Answer

A)  product extension strategy
B)  communication adaptation strategy
C)  product adaptation strategy
D)  dual adaptation strategy
E)  product invention strategyF) None of the above
G) A) and B)

Question 9

What is meant by the term economic infrastructure and how can this affect a firm's desire to enter a global market?

Accepted Answer

Economic infrastructure is a country's c...

Question 10

When firms originate, produce, and market their products and services worldwide, it is referred to as __________.

Accepted Answer

A)  acculturation
B)  global competition
C)  internationalization
D)  global collaboration
E)  transactional exchangeF) A) and B)
G) A) and C)

Question 11

Which of the following examples best demonstrates a company's appreciation for another country's values?

Accepted Answer

A)  A German company allows customers to make large purchase using lay-away (paying small amounts until the item is paid for and delivered.
B)  In Brazil, an appliance maintenance firm schedules service appointments allowing only 15 minutes of leeway for missed calls or no shows.
C)  In Japan, a spa owner created special exercise classes for husbands and wives.
D)  In India, a popular hamburger chain separated its dining area by color for people who wanted to eat beef and those who did not.
E)  Calvin Klein reduced the number of outdoor advertising placements showing scantily clad models in countries with predominantly Muslim populations.F) A) and E)
G) C) and D)

Question 12

Why has Dell, Inc.embarked on a global growth initiative?

Accepted Answer

A)  National sales have decreased.
B)  Dell was recently purchased by a major Chinese competitor.
C)  There is too much competition in Dell's direct marketing channel.
D)  There are fewer restrictions in computer technology outside the U.S.
E)  Emerging economies offer significant growth potential.F) A) and C)
G) All of the above

Question 13

According to economists, protectionism

Accepted Answer

A)  guards a nation's political security.
B)  encourages economic reliance on foreign countries.
C)  inhibits the development of domestic industries.
D)  creates opportunities for the outsourcing of domestic jobs.
E)  creates a more favorable environment for a global economy.F) A) and E)
G) A) and D)

Question 14

Many international firms, multinational firms, and transnational firms have administrative marketing, and manufacturing operations (often called __________)  around the world.

Accepted Answer

A)  divisions or subsidiaries
B)  cells or divisions
C)  allotment or partitions
D)  unions or subsidiaries
E)  distributions or subsidiariesF) None of the above
G) C) and D)

Question 15

Foreign countries with very low per capita incomes may, nonetheless, be attractive markets for expensive goods.To get a more accurate picture of a country's purchasing power, a country's __________ must also be considered.

Accepted Answer

A)  total income
B)  total area
C)  geographical location
D)  culture
E)  income distributionF) A) and B)
G) C) and D)

Question 16

FIGURE 7-9 
-Figure 7-9 above outlines the distribution channels through which a product manufactured in one country must travel to reach its destination in another country.Channels within a foreign nation can be very long or surprisingly short.Which cubicle represents these channels?

Accepted Answer

A)  cubicle A
B)  cubicle B
C)  cubicle C
D)  cubicle D
E)  cubicle EF) A) and C)
G) B) and E)

Question 17

If you wanted to set up a business importing amber from Latvia to the United States, you would have to plan on paying the U.S.Customs Service roughly 20 percent of the value of the product as a(n)  __________.

Accepted Answer

A)  bribe
B)  tariff
C)  subsidy fee
D)  excise tax
E)  quotaF) B) and E)
G) A) and B)

Question 18

Which of the following is an advantage inherent in the use of licensing?

Accepted Answer

A)  The licensee retains control of its product.
B)  The licensee is protected from creating a potential competitor.
C)  The licensee gains information about the dynamics of the market.
D)  There is an exemption from domestic trade regulations.
E)  There is an increase in potential profit gains.F) A) and B)
G) B) and E)

Question 19

When a U.S.airplane manufacturer sells its airplanes to business executives in Germany without using intermediaries, it is referred to as

Accepted Answer

A)  direct exporting.
B)  indirect exporting.
C)  licensing.
D)  foreign manufacturing.
E)  foreign assembly.F) B) and C)
G) A) and B)

Question 20

Which of the following is a disadvantage associated with licensing?

Accepted Answer

A)  licensor has lower wages and prices
B)  licensor may create its own competition
C)  licensor has increased profit potential
D)  licensor has complete control of the product
E)  the firm's reputation is improved if it selects a poor choice as a licenseeF) C) and D)
G) A) and B)

Exam 7: Understanding and Reaching Global Consumers and Markets

Which of the following is an advantage inherent in the use of licensing?

Correct AnswerverifiedShow Answer

In Latvia, the only six-lane highway connects Riga with Moscow.Otherwise, the roads are two-lane and many are made of cobblestones or bricks.This limits the speed with which deliveries can be made and means that delivery trucks must be quite small.The road network in Latvia is an example of its

Correct AnswerverifiedShow Answer

Which of the following examples best demonstrates a company's appreciation for another country's values?

Correct AnswerverifiedShow Answer

There are __________ World Trade Organization countries, including the United States, which account for more than 97 percent of world trade.

Correct AnswerverifiedShow Answer

When firms originate, produce, and market their products and services worldwide, it is referred to as __________.

Correct AnswerverifiedShow Answer

If you wanted to set up a business importing amber from Latvia to the United States, you would have to plan on paying the U.S.Customs Service roughly 20 percent of the value of the product as a(n) __________.

Correct AnswerverifiedShow Answer

Foreign countries with very low per capita incomes may, nonetheless, be attractive markets for expensive goods.To get a more accurate picture of a country's purchasing power, a country's __________ must also be considered.

Correct AnswerverifiedShow Answer

What is the term for a firm selling a product in a foreign country below its domestic price or below its actual cost?

Correct AnswerverifiedShow Answer

Figure 7-8 above, identifies 5 global product and promotion strategies a company can use when marketing to different countries.Name and describe each of these five strategies (A, B, C, D, and E).

Correct AnswerverifiedProduct extension strategy (A) - selling...View AnswerShow Answer

Why has Dell, Inc.embarked on a global growth initiative?

Correct AnswerverifiedShow Answer

What is meant by the term economic infrastructure and how can this affect a firm's desire to enter a global market?

Correct AnswerverifiedEconomic infrastructure is a country's c...View AnswerShow Answer

According to economists, protectionism

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Many international firms, multinational firms, and transnational firms have administrative marketing, and manufacturing operations (often called __________) around the world.

Correct AnswerverifiedShow Answer

FIGURE 7-9 -Figure 7-9 above outlines the distribution channels through which a product manufactured in one country must travel to reach its destination in another country.Channels within a foreign nation can be very long or surprisingly short.Which cubicle represents these channels?

Correct AnswerverifiedShow Answer

Which of the following is a disadvantage associated with licensing?

Correct AnswerverifiedShow Answer

FIGURE 7-8 -According to Figure 7-8 above, cell "A" refers to which type of product and promotion strategy?

Correct AnswerverifiedShow Answer

Four 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.

Correct AnswerverifiedShow Answer

When a firm sells its domestically produced goods in a foreign country through an intermediary, it is referred to as

Correct AnswerverifiedShow Answer

When a U.S.airplane manufacturer sells its airplanes to business executives in Germany without using intermediaries, it is referred to as

Correct AnswerverifiedShow Answer

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Product extension strategy (A) - selling...
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Economic infrastructure is a country's c...
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