Pop Quiz
Services account for almost ______ of U.S. GDP
3/4
Which of the following is NOT a trade bloc in the AsiaPacific region?
ACCA
Which two countries are the core members of MERCOSUR?
Argentina and Brazil
Customization is likely to be forced by all of the following EXCEPT
CEOs' preferences
Before the U.S. pulled out of the agreement, which country has notably been left out of the TransPacific Partnership?
China
All of the following are disadvantages of joining the Eurozone EXCEPT
Exchange rate risks are lower for companies inside the Eurozone
The mode of entry that provides firms with the most control is _____, while the least expensive is ______
FDI; exporting
What countries were granted the most-favored-nation status under the GATT?
GATT member countries
Executives at Gator Beer, a U.S. firm, have decided to enter the Chinese market through a licensing agreement with a beverage manufacturer located in Beijing. Which of the following statements, if true, would most likely undermine this decision?
Gator Beer is concerned about protecting its unique beverage formula to prevent duplication
GATT is an acronym for ________.
General Agreement on Tariffs and Trade
According to the Chapter 1617 lecture, promotion encompasses all of the following components EXCEPT
Group selling
NAFTA has achieved all of the following EXCEPT
Increased FDI in culture in all members
Suppose that Company X's patented technology has been successful in the United States. Company X wants to enter the German market without significant commitment of financial and managerial resources. Along with reduced costs and risks, Company X wants to receive a fee for the use of its technology. Based on this information, Company X should entry Germany via:
International licensing
The ________ is an agreement to create a customs union among the governments of Argentina, Brazil, Paraguay, Venezuela, and Uruguay.
Mercosur Accord
______ has a larger GDP, but ______'s economy and exports are growing faster.
Mercosur; the PA
_____ motivations are those that push a firm into foreign markets because opportunities decrease in the domestic market.
Reactive
To which African economic organization does South Africa belong?
Southern African Development Community
All of the following are advantages of international licensing EXCEPT
Stolen technology
Which governing institution is the EU's most powerful decisionmaking body?
The Council of European Union
What institution preceded the WTO?
The General Agreement on Tariffs and Trade
An American toy manufacturer is thinking of expanding either to Japan or China. If it chooses to expand to China, which of the following would be a direct potential cost of business?
The cost of building a new plant in China
Which of the following is a consequence of good public relations?
The firm will be viewed as a good corporate citizen
Services have all of the following characteristics EXCEPT
They don't have associated products
All of the following are characteristics of international services EXCEPT
They don't require customer participation
Why has the U.S. trade deficit with NAFTA increased in absolute, but not percentage, terms?
Trade overall has expanded; relative proportions have remained more or less the same
The 12 member countries became known as the European Union when the ________ was signed in 1993.
Treaty of Maastricht
What agreement established the European Economic Community?
Treaty of Rome
Which WTO member has been involved in the most disputes in the last 20 years?
US
The GATT was replaced by the ________
WTO
What organization replaced the GATT?
World Trade Organization
All of the following companies were harmed by inaccurate market assessments EXCEPT
Yum! Brands
Suppose Tesla, a U.S. car manufacturer, buys a production facility in Vietnam. Which term best describes Tesla's activities?
acquisition strategy
When British Petroleum ships crude oil from its storage facilities in Kuwait to its Australian subsidiary, ________ has occurred.
an intracorporate transfer
When German chemicals company BASF ships sodium carbonate from its storage facilities in Poland to its subsidiary in Italy, _____ has occurred.
an intracorporate transfer
Services differ from goods because they
are intangible
Carmichael Candies, a U.S. firm, is considering the idea of entering the EU market through an international franchising agreement. What is the MAIN advantage to Carmichael if the firm chooses this entry method?
avoidance of tariffs
Carmichael Candies, a U.S. firm, is considering the idea of entering the EU market through an international franchising agreement. What is the MAIN advantage to Carmichael if the firm chooses this entry method?
avoidance of tariffs
Which of the following products is LEAST likely to be customized?
bulldozer
Juanita recently purchased an FDX Computer. She needs assistance setting it up and contacts the firm's customer-service center, which is located in Bangalore, India. FDX Computer most likely engages in which of the following?
business process outsourcing
Juanita recently purchased an FDX Computer. She needs assistance setting it up and contacts the firm's customerservice center, which is located in Bangalore, India. FDX Computer most likely engages in which of the following?
business process outsourcing
In a(n) ________, members eliminate internal trade barriers, adopt a common external policy toward nonmembers, and eliminate barriers to the movement of the factors of production.
common market
General Mills and Nestlé created a joint venture that fully integrated all the efforts necessary to compete against Kellogg in the European cereal market. This is an example of a(n) ________ alliance.
comprehensive
According to the Chapter 12 lecture, in what industry/industries are turnkey projects likely to be used?
construction
According to Chapter 16 in Pustay and Griffin, advertising strategy includes all of the following decision factors EXCEPT
cost
All of the following EXCEPT _______ are legal forces that may affect the extent of product customization.
cultural preferences
A(n) ________ combines the elimination of internal trade barriers among member countries with the adoption of common external trade policies toward nonmembers.
customs union
In a(n) _____, members eliminate internal trade barriers and adopt a common external policy toward nonmembers.
customs union
_______ can be used to determine overall potential growth and future business opportunities in a market.
demographic data
Suppose your company is considering exporting to a new market and needs to determine whether it should sell a basic or luxury version of its product there. Data on all of the following EXCEPT _____ would best help answer that question.
demographic trends
The distribution channel with the shortest length is
direct sales
According to the Chapter 1617 lecture, all of the following are international distribution strategies EXCEPT
domestic distributor
In a(n) ________ members eliminate internal trade barriers, adopt a common external policy toward nonmembers, eliminate barriers to the movement of the factors of production, and coordinate economic policies.
economic union
Burger King has established a franchise agreement with an individual in Tokyo. Burger King will most likely provide the Japanese franchisee with all of the following EXCEPT ________.
financial capital
Burger King has established a franchise agreement with an individual in Tokyo. Burger King will most likely provide the Japanese franchisee with all of the following EXCEPT ________.
financial capital
All of the following are international distribution strategies EXCEPT
foreign-country methods
Executives at Bantam Bicycles realize that the firm lacks the necessary internal resources to compete internationally. Which of the following would most likely enable Bantam to compete in the global market?
forming a strategic alliance
The extent of product customization varies according to all the following factors EXCEPT
generic brands
Comtex, a U.S. clock manufacturer, recently built a new production facility in Bangladesh. Which term best describes the activities of Comtex?
greenfield strategy
Promotion encompasses all of the following components EXCEPT
group selling
Flying Biscuit Café, an American restaurant, wants to enter the Latin American market through an international franchising agreement. All of the following are advantages to Flying Biscuit of using this mode of entry EXCEPT
increasing profits from shared revenues
What is the most likely result of a new continentwide freetrade agreement in Africa?
increasing trade and decreasing consumer prices
What is the term used to describe when a firm sells its product to a domestic customer, which in turn exports the product, in either its original form or a modified form?
indirect exporting
When Hewlett-Packard buys microchips from Intel to use in manufacturing computers and then exports the completed computers to Europe, ________ has occurred.
indirect exporting of intel's chips
A comprehensive alliance is formed when two or more firms ________.
integrate different operating procedures to bring goods or services to the market
________ advantages are advantages that make it desirable for a firm to produce a good/service itself rather than contract out to another firm to produce it.
internalization
A ________ is a special type of strategic alliance in which two or more firms join together to create a new business entity that is legally separate and distinct from its parents.
joint venture
Through a strategic alliance, a firm can
learn to produce a new good or service acquire more financial resources use their partner's knowledge and connections to better handle government regulations
The Nintendo Company manufactures electronic video consoles and game cartridges. Nintendo provides game-design firms with technical specifications for how Nintendo consoles function. The game-design firms create the games and then pay Nintendo a fee to manufacture those games. What mode of entry is described in this example?
licensing
In Africa, CocaCola has been successful at selling its products by using individual vendors across the continent. Which distribution strategy is this?
localmarket systems
All of the following are advantages of contract manufacturing EXCEPT
loss of control
IMAX, the entertainment firm, recently entered into a joint venture with Wanda Cinema Line, a Chinese theater chain. What was IMAX primarily seeking by forming this arrangement?
making entry into the Chinese market easier
A(n) ________ alliance occurs when partners share expertise or services related to distribution, pricing, and communications.
marketing
The Japanese company Bandai and the U.S. toymaker Mattel entered into a strategic alliance. Bandai agreed to distribute Mattel products like Barbie dolls in Japan while Mattel agreed to distribute Power Rangers in Latin America. What type of alliance is this an example of?
marketing
All of the following are AsiaPacific Trade Blocs EXCEPT
mercosur
The ________ requires that any preferential treatment granted to one country must be extended to all countries.
most-favored-nation principle
Proctor & Gamble is entering a new market and determines that the country has a high illiteracy rate. Given this information, which medium should P&G avoid using for its advertising campaign?
newspapers
During the Clinton administration, the "mostfavorednation" principle was changed to ______.
normal trade relations
What is the primary reason that strategic alliances fail?
partner incompatibilityy
Which category of promotion allows close contact with the customer but is expensive and reaches customers only within a small region?
personal selling
China's middle class is growing fast and developing a taste for foreign goods, especially specialty cheeses. As a result, Fromage de France, based in Bordeaux, France, has recently become very popular in China. FdF's cheeses have a very short shelf life, meaning they need to be consumed within a week after being produced. In addition, FdF's market research team has determined that Chinese consumers will pay a premium to buy its specialty product. Given these factors, which distribution method will Fromage de France most likely choose to bring its product to the Chinese market?
plane
The highest level of economic integration is
political union
The extent of product customization varies according to all the following factors EXCEPT
popularity
Which of the following products is most likely to be customized?
potato chips
Which of the following is NOT a cultural influence on products?
price
All of the following are management considerations specific to international service operations EXCEPT
price planning
________ are those that pull a firm into foreign markets as a result of opportunities available there.
proactive motivations
Avia Battery and Simon Battery both manufacture batteries in a shared facility. The two firms have most likely established a(n) ________ alliance.
production
According to the Stratfor video about the TPP, what issue is a major concern as the U.S. negotiates with its Asian counterparts?
protection of intellectual property
Micron Technology, Intel, Samsung, Hyundai, and Siemens have formed an alliance to develop the next generation of DRAM chips. This an example of what type of alliance?
research and development
Gator, Inc., produces painted, life-size aluminum alligators. These alligators have recently become very popular in Japan, and the company needs a low-cost way to ship its product overseas. Choosing airplane distribution has the advantage of being _____ and disadvantage of being ______. Choosing ship distribution has the advantage of being _______ and disadvantage of being ______.
safe; costly; cheap; slow
Which of the following comprises specialized marketing efforts such as coupons, instore promotions, sampling, directmail campaigns, cooperative advertising, and trade fair attendance?
sales promotion
According to the UNCTAD World Investment report, the majority of greenfield FDI projects are in the ____ sector.
services
What accounts for almost 75% of U.S. GDP?
services
. ______ account for almost ______ of U.S. GDP
services; 75%
Boeing collaborated in a strategic alliance with Fuji, Mitsubishi, and Kawasaki in the development and production of the Boeing 777 to minimize Boeing's financial exposure. What benefit of strategic alliances was Boeing seeking?
shared risk
Gator, Inc., produces painted, life-size aluminum alligators. These alligators have recently become very popular in Japan, and the company needs a low-cost way to ship its product overseas. What distribution method will Gator, Inc., most likely choose?
ship
Which of the following products is most likely to be customized?
soap
The Mitsubishi Corporation is a firm that is directly engaged in importing and exporting a wide variety of goods for its own account and is a part of a keiretsu system. What type of export intermediary is it? A) export management company
sogo shosha
The Mitsubishi Corporation is a firm that is directly engaged in importing and exporting a wide variety of goods for its own account and is a part of a keiretsu system. What type of export intermediary is it?
sogo shosha
Which of the following is NOT a potential risk of entering a foreign market?
synergy
The extent of product customization varies according to all the following factors EXCEPT
target governments
All of the following are African free-trade agreements EXCEPT
the african union
Which EU institution is the most powerful decision-making body?
the council of european union
According to the Chapter 10 lecture, which of the following pose(s) challenges to the EU's future?
the large percentage of the EU budget spent on the Common Agricultural Policy
What agreement triggered the establishment of the European Economic Community?
treaty of rome
Because customer participation is often required when services are purchased, services must often be customized to meet buyers' needs.
true
Because customer participation is often required when services are purchased, services must often be customized to meet buyers' needs.
true
Due to a supply glut, analysts expect to see an increasing number of mergers in the global shipping industry.
true
When choosing a method of international distribution, firms must weigh the tradeoff between time and money.
true
