Chapter 7 MKTG 361

Direct investment requires a firm to maintain ______ ownership of its facilities, offices, and plants in a foreign country.

100%

Which country is the top exporter globally?

China

The EU promotes trade among countries in ______.

Europe

Select all that apply What are the two main components of the political and regulatory climate assessment that a global company must address?

How difficult is it to navigate the trade regulations in order to do business there?, How stable is the country in terms of its government?

Select all that apply Pricing in the global marketplace is a difficult task for which two reasons?

Issues like tariffs and anti-dumping laws might exist., Many countries have rules governing the competitive marketplace.

What are the three primary ways a product can be sold globally?

Product extension, product adaptation, and product invention

Which legislation makes the theft of trade secrets by foreign entities a federal crime in the United States?

The Economic Espionage Act

Select all that apply Under which of the following conditions do the political-regulatory climate in a country would become unappealing to global companies? (Check all that apply.)

There had been several acts of terrorism in urban areas., There are quite a few rules associated with selling products in the country.

In which of the following ways do successful global marketers handle their firm's global marketing programs?

They will standardize them whenever possible.

Select all that apply What two situations likely exist in developing countries that cause marketers to adapt their global distribution strategies?

Transportation and communication systems are underdeveloped., Traditional channels that have been used do not exist.

Which country is the top importer globally?

United States

Exporting occurs when ______.

a firm produces a product in its own country and sells it in another

Which best describes the European Union?

a group of European countries that signed a trade agreement for the purpose of promoting free trade within their countries

A personally or socially preferable mode of conduct or state of existence that tends to persist over time is called ______.

a societal value

Gross domestic product is the monetary value of ______.

all products and services produced in a country during one year

In the past decade, the dollar value of world trade has ______.

almost doubled

Select all that apply In what two ways do governments implement protectionism measures?

by setting quotas, by imposing tariffs

Global ______ among firms exists when they originate, produce, and market their products worldwide.

competition

Select all that apply Select the four options for entering a global market.

direct investment, licensing, exporting, joint venture

Global marketers may devise creative solutions for getting their products to hard-to-reach consumers in developing countries. This type of solution is part of the firm's ______ strategy.

distribution

The clandestine collection of trade secrets or proprietary information about competitors is known as ______.

economic espionage

The global market-entry strategy in which products are produced in one country and sold in another is called ___ .

exporting or export

When a firm either produces or markets its products worldwide it is participating in what is known as ______.

global competition

Technology allows people to connect from distant parts of the world, allowing the growth of ______.

global markets

The acronym GDP stands for ______.

gross domestic product

A(n) ___ venture is a global market-entry strategy that creates a partnership between a local and a foreign firm that will share ownership, control, and profits from the new company. (one word)

joint

A local firm and the foreign firm investing together to create a local business is called a(n) ______.

joint venture

A firm can choose a global market entry strategy from among four choices: exporting, ______, joint venture, and direct investment.

licensing

General Mills has a(n) ________ arrangement with French cooperative Sodima to produce and sell its Yoplait yogurt in the United States.

licensing

When a company offers the right to a trademark, patent, trade secret, or other intellectual property in return for a royalty or a fee, it is known as a(n) ________ arrangement.

licensing

Which industry accounts for about 80 percent of world trade?

manufactured goods and commodities

Select all that apply What two trends in the past decade have significantly influenced global marketing?

presence of a networked global marketspace, economic integration among countries

Germany did not allow Walmart to sell some items below cost, an example of how a foreign government can constrain _________, which here made it impossible for Walmart to compete with local discount stores.

pricing strategy

What is not one of the three ways a product may be sold globally?

product diversification

Tariffs and quotas are the tools of ______ , used by governments to shield local industries from foreign competition (one word).

protectionism

Direct investment exposes a firm to ______ risk.

significant

A global environmental scan, marketing research, and judgments based on experience will determine the extent of ________ that global marketing programs will have.

standardization or customization

Changes in which of the following has been the driving force for growth in global markets?

technology

When the European countries signed a trade agreement creating a free trading zone between the countries, they formed a transnational trading group called ______.

the EU

Currencies fluctuate against each other every day. The price of one's country's currency expressed in terms of another country's is called ______.

the currency exchange rate

When people from the United States travel to countries in Europe, they might check to see how the U.S. dollar compares to the euro. In doing so, they are checking ______.

the currency exchange rate

One important trend of the past decade on global marketing is ______.

the growth of global competition and global consumers

An example of a societal ______ is Germans' lack of interest in using credit cards like Visa and MasterCard, perhaps in part because the German word for 'debt' is the same as the word 'guilt'.

value or values