Marketing Chapter 5
In Taiwan, the translation of the Pepsi tagline "Come alive with the Pepsi Generation" came out as "Pepsi will bring your ancestors back from the dead" could have been avoided if what technique was used?
Back Translation
What country supplies 97% of the supply of scandium and terbium (two rare earth elements)?
China
True or False: Multinational corporations comprise far less than 1% of American companies, therefore, multinational corporations have little to no effect on jobs, exported goods, and R&D.
False
True or False: The U.S. has the highest GNI.
False
In what does culture underlie?
Family, Educational system, Religion, and Social class system
For what does the U.S. rely on the African nations?
Many precious metals
The EU is an example of a(n) ___________.
Market Grouping
The Uruguay Round of trade negotiations created the _____, which replaces GATT. This trade agreement dramatically lowered trade barriers worldwide.
World Trade Organization
Kellogg created commercials to communicate how to eat cold cereal in parts of the world where milk consumption is low. This is an example of ___.
promotion adaption
several arab nations have ___ products made in israel
boycotted
How long did the talks of Doha Rounds last?
14 years
How many members (countries) are currently in the EU? (Internet search)
27
An exclusion of all products from certain countries or companies by a govt/group
Boycott
What countries are in BRICS?
Brazil, Russia, India, China, and South Africa
Private-label manufacturing by a foreign country is called ________.
Contract Manufacturing
International trade does not always involve cash. Sometimes companies accept all or part of the payment for goods and services in the form of other goods and services. This is called ___.
Counter trade
___________ is the common set of values shared by its citizens that determine what is socially acceptable.
Culture
In which countries are the higher family incomes?
Developed countries
The form of global organization that provides the highest potential for return on investment as well as the highest level of risk is _____ .
Direct Investment
What is the latest round of world talks (2001)? ____________ Round
Doho
A law that compels a company earning foreign currency from its exports to sell it to central banks than sending the money out of the country is ____.
Exchange control
Which method is the least risky/complicated? (Hint: selling domestically produced products to buyers in other countries)
Exporting
Why was Walmart fined $9.8 million? (page 76)
For selling donkey meat that turned out to be fox
_______ is another form of licensing.
Franchising
__________ is 19 nations plus EU, established in 1999, brings together industrialized and developing nations to discuss key issues in the global economy
G-20
What is the total market value of all final goods and services produced in a country for a given period of time?
GDP
_________ is the total market value of all final goods and services produced in a country for a given time period
GDP
______ represents the value produced by a country's economy in a given year, regardless of whether the source of the value created is domestic production or receipts from overseas.
GNI
___ is marketing that targets markets throughout the world.
Global marketing
____ is the total market value of all final goods and services produced ina country for a given time period (usually a quarter).
Gross Domestic Product
With which country does the U.S. not have a trade deficit?
Hong Kong
A tax on the goods entering a country is ____.
Tariff
Who is the lender of the last resort?
International Monetary Fund
Which of the following is true of outsourcing?
It faces production delays due to faulty parts.
U.S.-based Procter & Gamble and Italian-based Fater agreed to produce and market diapers for the European market. This is an example of a __.
Joint venture
When a domestic firm buys part of a foreign company or joins with a foreign company to create a new entity, it is called _____________.
Joint venture
All of the following statements about the use of the Internet in global marketing are true EXCEPT:
Language barriers are limiting the potential of the Internet in international marketing.
How does the WB define extreme poverty?
Living on less than $1.90/day
According to your textbook (page 75), Singapore, Hong Kong, Zurich, Geneva, Paris, and ____ are the most expensive places in terms of the cost of doing business.
London
What is the largest Latin American trade agreement called, which includes Argentina, Bolivia, Chile, Colombia, Ecuador, Paraguay, Peru, and Uruguay?
Mercosur
What is the largest Latin American trade agreement?
Mercosur
_________________ moves resources, goods, services, and skills across national boundaries without regard to the country in which its headquarters are located.
Multinational corporations
With which country does the U.S. have a trade surplus? (best answer)
Netherlands
Why did Google leave China?
Numerous cyberattacks and governmental pressure to release user information
Is the world's population getting older or younger?
Older
P&G uses the same product and promotional themes for Head & Shoulders in China as it does in the U.S. This is an example of ___.
One Product, One Message
The owners of Vogue, an apparel store based in California, want to expand the store's business all over the world. In this case, which of the following strategies can help the owners of Vogue achieve their objectives?
Opening an e-commerce site
Chinese don't like sweet cookies, and Kraft's Oreos were not selling well. Chinese consumers also thought the package was too expensive. Kraft introduced packages containing fewer Oreos at a reduced price and also created a "Chinese Oreo" consisting of four layers of crispy wafer filled with vanilla and chocolate cream, coated in chocolate. Which of the marketing mix strategies did Kraft use?
Product adaptation
Starbucks makes and sells a tandoori paneer roll for the Indian market. (Made for this market and sells it only to this market)
Product invention
A limit on the amount of a specific product that can enter a country is ____.
Quota
Which statement is true about capital intensive?
Requires a greater expenditure for equipment than labor
Who offers low-interest loans to developing nations (but is not a last resort lender for troubled nations)?
World Bank
One reason a joint venture might fail is sometimes management strategies and policies cannot be agreed on.
True
Suppose a Chinese firm makes computer chips at $4.00 per chip but sells the chips for $2.00 in American markets. American producers of computer chips cannot supply chips at the low rates that the Chinese firm is supplying them. The Chinese firm is engaging in dumping.
True
The first step is to develop a thorough understanding of the global target marketing mix.
True
True or False: India is the "brightest light" among the BRICS because this country is less dependent than on exports than the other BRICS countries.
True
What country has the largest economy?
U.S.
What trade agreement replaced NAFTA effective July 1, 2020? (Internet search)
USMCA
What trade agreement dramatically lowered trade barriers worldwide?
Uruguay Round
____________ dramatically lowered trade barriers worldwide. It was adopted in 1994 is the most ambitious (strong desire and determination to succeed) global trade agreement ever negotiated; had reduced tariffs by 1/3 worldwide
Uruguay Round
Per the WBG, which country is NOT one of the easiest to conduct business?
Venezuela
What natural resource will be scare by 2025 according to the U.N.?
Water
The pricing component of the global marketing mix is ____
a complex matter due to tariffs, exchange rates, and transportation costs, insurance, and taxes.
Having a global vision means ________. (best answer)
being aware of threats from foreign competitors in all markets, recognizing and reacting to international marketing opportunities, using effective global marketing strategies
The difference between the value of a country's exports and the value of its imports over a given period of time is ___
balance of trade
International trade does not always involve cash. Sometimes companies accept all or part of the payment for goods or services in the form of other goods or services. This is known as:
countertrade
American firms should never try to do business in Europe in August because they will find that everyone has gone on vacation. Today, all European countries have laws requiring companies to provide employees with vacations of at least four to five weeks. This would be an important part of the European _____ environment that any multinational firm doing business there needs to be aware of.
cultural
The European Union accused South Korea of selling ships at a loss in an attempt to push its European rivals out of the market. In other words, South Korea was accused of ______
dumping
The European Union accused South Korea of selling ships at a loss in an attempt to push its European rivals out of the market. In other words, South Korea was accused of:
dumping.
Countries with weak and/or developing economies generally use foreign ____ to limit speculation against their currencies. (Hint: its a law compelling a company earning foreign exchange (money) from its exports to sell it to a control agency/central bank.
exchange controls
The price of one country's currency in terms of another country's currency is called the ____.
exchange rate
Vast differences in natural resources create all of the following EXCEPT:
export opportunities for countries with no natural resources
Currency markets operate under a system in which the prices of different currencies move up or down based on the demand for and supply of each currency. This practice is called _____.
floating exchange rates
If an American company outsourced jobs and found it was not worth outsourcing, the company may decide to bring the jobs make to U.S. soil. This is called ___.
inshoring
Coca-Cola Classic is marketed the same (same bottle, same flavor, same script, etc.) way all over the world. Coca-Cola uses the notion of ____.
global marketing standardization
One Product, One Message is ____________.
global marketing standardization
Victorinox Swiss Army Knife is an example of _______________ because Victorinox standardizes products to be sold the same way all over the world.
global marketing standardization
EU is the best known example for this
market grouping
A(n) _____ is a company that is heavily engaged in global trade and moves its resources, goods, services, and skills across national boundaries.
multinational corporation
____________ is sending jobs abroad, which may cause some people to lose their jobs as production shifts abroad.
outsourcing
What are the 2 primary determinates of any consumer market?
population and wealth
The International Monetary Fund (IMF) was founded in 1945 to ________.
promote trade through financial cooperation and eliminate trade barriers in the process.
Globalization ____.
promotes economic freedom and increases living standards
AFLAC has had to ditch the AFLAC duck in its Japanese commercials because the Japanese consumer does not like to be yelled at. Since Japan is the source of about 70 percent of the insurance company's business, it had no trouble adopting a _____ strategy.
promotion adaptation
the organization of petroleum exporting countries sets a production ____ for crude oil in order to "maintain" the price of
quota
on march 1, 2018, president Trump announced he would impose a 25% _____
tariff
True or False: Foreign competitors have gained significant market share in the United States.
true
True or False: Many people fear world trade because it causes some people to lose their jobs as production shifts abroad.
true
True or False: Marketing managers must develop a global vision not only to recognize and react to international marketing opportunities but also to remain competitive at home.
true
True or False: Often a U.S. firm's toughest domestic competition comes from foreign companies.
true
The UN predicts that by 2025, 1.8 billion people will be living in a country with an absolute ____ scarcity.
water