Marketing Chapter 9
Which of the following is most likely to engage in direct ownership activities internationally? a.Internationally integrated structures b.Export department structures c.International division structures d.Import department structures
A
Which of the following is most likely to lead to acceptance of a new product being introduced from one country to another? a.Cultural similarities between the two countries b.Attractive packaging that matches local preferences c.Promotion incentives or coupons to purchase the product d.Competitively priced products
A
_______ are often utilized to produce revenue for a country and/or to protect domestic products from foreign competition. a.Quotas b.Warning labels c.Exchange controls d.Import tariffs
D
A small, family-owned French winery is considering exporting its champagne to China. Which of the following would be the best measure of market potential for the winery to utilize in making decisions about exporting its wines? a.Balance of trade b.Per capita gross domestic product (GDP) c.Unemployment rate d.Population growth
B
An account representative is meeting with a client team in an Asian company and notices that any attempt to discuss business is avoided and, instead, the clients are more interested in learning about the sales representative's family and hobbies. The account representative is surprised and growing anxious that he's not able to get down to business more quickly and is worried the client company may not be interested in his product. Which environmental force has the sales representative encountered? a.Economic b.Sociocultural c.Technological d.Competitive
B
An organization that links buyers and sellers in different countries but is not involved in manufacturing is called a(n) _______. a.joint venture b.trading company c.strategic alliance d.exporter
B
An overall measure of a nation's economic standing and the market value of a nation's total output of goods and services for a given period is called _______. a.national economy b.gross domestic product c.trade balance d.exchange controls
B
Countries may utilize nontariff trade restrictions such as _______, which place a limit on the amount of goods an importing country will accept for certain product categories. For example, if the United States wanted to increase sales of domestic products such as textiles, it could limit the number of textile products imported into the United States from other countries. a.embargoes b.quotas c.exchange controls d.import tariffs
B
Exporting, licensing, and using trading companies are preferred modes of international market entry for firms with a(n) _______ structure. a.international division b.export department c.internationally integrated d.geographic area
B
According to the text, which country has the highest gross domestic product? a.Brazil b.Switzerland c.United States d.China
C
_______ is/are defined as a partnership between a domestic firm and a foreign firm or government and is especially popular in industries that require large investments such as automobile manufacturing. a.Exporting b.Contract manufacturing c.Joint ventures d.Licensing
C
Mitsubishi Motors, based in Japan, operates several _______ as part of its global footprint where it has centralized the responsibility of international operations such as human resources, sales, and production into one unit that serves as the central point for all information flows related to the international operations. The company maintains these offices in Africa, Asia, Europe, Latin America, the Middle East, North America, and Oceania. a.trading companies b.outsourcing units c.export departments d.international divisions
D
A Spanish term used to refer to production facilities established in Mexico near the United States border is _______. a.mercado b.la mordida c.la producto d.maquiladoras
D
A shoe manufacturer in Italy is allowed to export a limited number of shoes to Russia and is an example of how Russia utilizes _______ to limit the amount of goods it will accept for certain product categories. a.import tariffs b.a balance of trade restriction c.quotas d.a trade embargo
D
An organizational structure that centralizes all of the responsibility for international operations is called _______. a.international division b.global matrix structure c.export department d.geographic area structure
A
BMW recently engaged in a(n) _______ arrangement with Maclaren, a stroller manufacturer to expand its market through lifestyle products. According to the Maclaren website, "The BMW Buggy is an engineering-inspired Maclaren Object of Design combining the highest quality materials and signature design details to create a sophisticated stroller. The award-winning Maclaren BMW Buggy is our lightweight, high-performance stroller. Suitable for children from 6 months and up, the car-inspired stroller delivers a padded liner with a luxurious bucket-seat feel, multiple position recline seat, contoured hood with mesh windows and insignia details." a.licensing b.contract manufacturing c.joint venture d.exporting
A
Companies that are described as _______ were founded with the knowledge and resources to expedite their commitment and investment in the global marketplace and typically represent small technology-based firms that earn as much as 70% of their sales outside their domestic home market. a.born globals b.multinational enterprises c.multinational operations d.natural multinationals
A
Global companies are becoming more adept at managing their products, sourcing, and pricing in ways that realize the most profit and must be aware of concerns such as currency exchange rates when conducting their business and exporting products from one country to another country. For example, a U.S.-based company that sells product in Canada must price in Canadian dollars. The level of inflation or deflation and the relationship between the U.S. dollar and Canadian dollar will affect the price that customers will be willing to pay for the products as well as the profit margins realized by the U.S. firm. This is an example of the _______ force which affects international marketing activities. a.economic b.political, legal, and regulatory c.sociocultural d.competitive
A
In many developing countries around the world, technology is enabling opportunities to "leapfrog" existing technology. What does this mean? a.More advanced technology is reaching these countries even though they lack technological infrastructures. b.The technology in developing countries is rapidly surpassing the technology in well-developed countries. c.Technological advances are often offered at prices considerably lower than in well-developed countries. d.These countries are able to forgo current technological advances in order to wait for even better technology to be developed.
A
Member countries of the European Union utilize a common currency, called the _______, except for _______. a.euro; Denmark b.euro; France c.dollar; Sweden d.Deutschmark; Austria
A
Recently diplomatic ties have improved between the United States and Cuba and consumers in the United States could soon benefit from the lifting of _______ on products from Cuba, such as cigars, rum, sugar, as well as fruits and vegetables. Due to this policy, the United States has suspended trade with Cuba due to human rights violations and political concerns. a.an embargo b.quotas c.exchange controls d.an import tariff
A
Which of the following is NOT a benefit to a franchisor such as Kentucky Fried Chicken in expanding into international markets? a.Kentucky Fried Chicken has decreased penetration in global markets. b.Revenues are fairly consistent since franchisees pay a fixed fee and royalties. c.Franchise agreements ensure a certain standard of behavior and protect the franchise name. d.Kentucky Fried Chicken does not need a large capital investment.
A
Firms that enter international markets often find that they must make significant adjustments in their marketing strategies since the forces impacting foreign markets are distinct from those affecting domestic markets. Therefore, a successful international marketing strategy requires a careful _______ analysis. a.political b.environmental c.social d.competitive
B
High Plains Furnishings, a furniture manufacturer in southern Montana, markets its furniture products in markets within the United States. It has also found several niche target markets in Finland, Chile, and Argentina. High Plains Furnishings is engaging in _______. a.globalized marketing b.domestic marketing and limited exporting c.domestic marketing and international exporting d.localized marketing and domestic marketing
B
The Grummond Group buys air conditioner components in industrialized countries and sells them to business customers in developing countries where the air conditioners are assembled. Grummond is most likely classified as a(n) _______. a.joint venture b.trading company c.licensee d.strategic alliance
B
The _______ differs from other international trade alliances in its commitment to facilitating business and its practices of allowing the business/private sector to participate in a wide range of organization activities. a.North American Free Trade Agreement (NAFTA) b.Asia-Pacific Economic Cooperation (APEC) c.European Union (EU) d.Southern Common Market (MERCOSUR)
B
The unconscious reference to one's own cultural values, experiences, and knowledge when encountering new and different cultures is known as _______. a.the Fraedrich Principle b.the self-reference criterion c.cultural relativism d.the "when-in-Rome" approach
B
Thirty-thirty Coffee is a national coffee roaster that sells coffee to restaurants and coffee shops. They are considering opportunities to expand internationally since they have won many awards for its coffee and believe its product could be successful in other countries. However, the company has never conducted business outside of the United States and does not have the capitol to conduct marketing research to identify the best market opportunities for its products. What type of business could best enable thirty-thirty Coffee to explore its opportunities with little risk and no foreign direct investment? a.Licensing b.Exporting c.Subsidiaries d.Joint ventures
B
When governments restrict the amount of a particular currency that can be bought or sold, it can force businesses to conduct business through a central agency such as a central bank. These restrictions are known as _______. a.currency relief b.exchange controls c.quotas d.import tariffs
B
Which of the following activities are NOT conducted by the World Trade Organization (WTO)? a.Provides a forum for tariff negotiations b.Extends business loans through the World Bank c.Enables discussion of international trade problems d.Promotes free trade among member nations
B
Which of the following is true about the European Union? a.The European Union is intended to replace the existing country states. b.The European Union was established to promote free trade among its members. c.The European Union promotes free trade by increasing custom checks. d.The European Union is comprised of a homogeneous set of democratic countries.
B
_______ marketing involves developing and performing marketing activities across national boundaries. a.National b.International c.Regional d.Standardized
B
A beverage company is considering international expansion and knows there could be differences related to _______ forces, such as differences in standards of living, credit, buying power, and income distribution. a.political, legal, and regulatory b.ethical and social responsibility c.economic d.sociocultural
C
A firm may utilize a(n) _______ organizational structure and engage in exporting, licensing, and use of trading companies as preferred modes of international market entry. a.export departments b.geographic area c.international divisions d.matrix
C
Because Skype was an internet firm, it was not faced with some of the limitations many other companies encountered. It adopted a global orientation from the outset. Since Skype is an application that allows for video chat services, it quickly grew popular worldwide. Eventually, Microsoft acquired Skype for $8.5 billion. Skype is an example of what type of firm? a.Globalized firm b.Market niche c.Born global d.Localized firm
C
Caterpillar is a global business and utilizes engineers to assist with new product development, specifications and quotations for client purchases, and other engineering services. In order to quickly respond to requests for bids, Caterpillar utilizes _______ to contract with engineering firms in China and India that can respond to bid requests during the evening and overnight hours of the United States and enable customers to receive faster quotes. a.contract manufacturing b.trading companies c.outsourcing d.licensing
C
Greece has been facing dire economic conditions recently and is seeking ways to raise revenue. Greece could impose a(n) _______ on goods purchased outside its borders and brought into the country. a.embargo b.foreign tax c.import tariffs d.travelers' tax
C
How does using an exporting intermediary limit the risk involved with global marketing? a.Using an exporting intermediary restricts a company to being involved with joint ventures and not direct ownership. b.Most exporting intermediaries assume all financial risks on behalf of their clients. c.This approach involves limited risk because the company has no direct investment in the foreign country. d.Exporting intermediaries are not subject to the same laws as companies, and therefore limit the legal risk involved.
C
International business in the _______ has been negatively impacted by poor financial conditions in member countries, including Portugal, Italy, Greece, and Spain—affectionately known as the PIGS of the Common Market. a.Southern Hemisphere b.Northern European Commonwealth c.European Union (EU) d.United Kingdom
C
Limited Pottery makes hand-crafted pottery and dining sets and markets its line of products throughout the United States in specialty stores. It has also several relationships with distributors in France, Germany, and Sweden who represent the company and sell the product to retailers in those countries. Limited Pottery is engaging in which type(s) of global marketing? a.Multinational marketing b.Regional marketing c.Domestic marketing and limited exporting d.Localized marketing and domestic marketing
C
Princeton Sun Hats markets its products around the world and creates standardized products that can be successfully marketed in various countries utilizing the same marketing mix since customer needs are relatively homogeneous. Princeton Sun Hats is utilizing a _______ strategy. a.licensing b.limited exporting c.globalization d.regional customization
C
Selling products that are not in demand in all world markets, such as hand-powered washing machines for use in countries where electricity is not universally available, represents an international marketing strategy focusing on _______. a.globalization b.internationalization c.customization d.nationalization
C
The United States began a program to limit the number of pounds of sugar that could be imported into the United States in order to maintain higher prices on domestically produced sugar and protect the industry from foreign competition. The current _______ is 3 billion pounds which represents about 15% of U.S. consumption of sugar. a.import tariff b.embargo c.quota d.exchange control
C
The concept that morality varies from one culture to another and that business practices are differentially defined as right or wrong by each culture is termed _______. a.economic relativism b.moral relativism c.cultural relativism d.global relativism
C
U.S. manufacturers utilizing contract manufacturers in China have faced increased concerns about intellectual property and gray market goods. For example, a walk through any of China's open-air markets will demonstrate the frequency with which foreign firms' logos and merchandise are available, such as the famous Burberry beige-black-and-red pattern scarf, Coach purses, and Caterpillar brand shoes. This exemplifies the impact of _______ forces on international business. a.competitive b.political, legal, and regulatory c.ethical and social responsibility d.technological
C
Which of the following trade alliances differs from others in its commitment to facilitating business and its practice of allowing the private sector to participate in a wide range of activities? a.Southern Common Market (MERCOSUR) b.European Union (EU) c.Asia-Pacific Economic Cooperation (APEC) d.North American Free Trade Agreement (NAFTA)
C
_______ can be a viable alternative when the political stability of a foreign country is in doubt. In addition, it's especially advantageous for small manufacturers wanting to launch a well-known brand internationally. a.Contract manufacturing b.Trading companies c.Licensing d.Joint ventures
C
China is the world's largest beer producer and consumer and represents a significant opportunity for American craft breweries. An increasing number of consumers in China, especially middle-class residents, prefer imported beers due to their higher quality, flavor options, and enhanced food safety. In stores, restaurants, and bars, the price of an imported beer would be $2 to $4 per liter and vary from 100%-200% more expensive than Chinese domestic mass-produced beers. Part of the price difference is related to the _______ that are imposed on imported beers, which raised the price of the product and affected trade. American craft breweries must realize that China is simply attempting to protect its local beer market at the expense of foreign firms competing in China. a.quotas b.exchange controls c.embargoes d.import tariffs
D
Companies seeking to expand their exporting opportunities to Cuba are utilizing a(n) _______, which links buyers and sellers in different countries but is not involved in manufacturing and does not own assets related to manufacturing. a.licensing b.contract manufacturing c.outsourcing d.trading company
D
Fiat and the Indian automotive manufacturing company, Tata Motors, authorized a 50:50 industrial _______ in the mid-2000s. Both companies agreed to share a distribution network, back-end support system, and the co-manufacturing of products at a facility in Ranjangaon, India. a.franchise b.contract manufacturing c.multinational enterprise d.joint venture
D
Individuals seeking to conduct business in China learn the practice and custom of presenting a business card. Business cards should be printed on both sides of the card and simple Chinese should be utilized for translation purposes. When exchanging cards, two hands are utilized to present the card to your counterpart with the Chinese version showing. Cards are exchanged one at a time and never tossed out or handed out to multiple people simultaneously. This business card ritual is an example of the _______ force affecting international business. a.economic b.political, legal, and regulatory c.technological d.sociocultural
D
Partnerships which are formed to create a competitive advantage on a worldwide basis and may involve traditional rivals competing for the same market are called _______. a.trading companies b.contract manufacturers c.licensees d.strategic alliances
D
Recently, the European Commission launched a(n) _______ investigation related to allegations that Russia and China were selling cold-rolled flat steel products—used in cars and home appliances—at below market prices in the European Union (EU) market "causing material injury" to the EU industry. a.importing b.exporting c.fraud d.dumping
D
The Global Group acts as a wholesaler and takes on the responsibility of finding markets and facilitating marketing on behalf of its client firms. One of its clients, Nature First, is a health and beauty aid company who sells the Global Group lotions, makeup, and other products which it then sells to customers in other markets. What approach to international involvement does the Global Group provide to customers, such as Nature First? a.Joint venture b.Licensing c.Strategic alliance d.Trading company
D
Traditionally, most companies entered the international marketplace _______ as they gained knowledge about various markets and opportunities. a.quickly b.globally c.regionally d.incrementally
D
_______ are defined as government restrictions on the amount of a particular currency that can be bought or sold and may also limit international trade. a.Quotas b.Balance of trade quotas c.Import controls d.Exchange controls
D
_______ is another name for the European Union. a.North American Free Trade Agreement (NAFTA) b.European Market c.The Euro d.European Community
D
A nation's political system, laws, regulatory bodies, special-interest groups, and courts all have a great impact on international marketing. These entities are part of the _______ forces that affect international marketing activities. a.political, legal, and regulatory b.economic c.technological d.sociocultural
A
A variety of environmental factors affect the ability of companies to successfully launch international or global marketing activities. A firm considering the expansion of its business through exporting should consider the impact and existence of trade barriers which is a(n) _______ force. a.political, legal, and regulatory b.competitive c.economic d.sociocultural
A
Apple and IBM recently announced a(n) _______ to allow the two companies to work together on a worldwide basis. Apple hopes to capitalize on IBM's capabilities to analyze big data as well as break into the corporate, business-to-business marketplace. IBM will benefit from Apple's innovations and iOS systems which will allow people to change the way they work. Thus, the arrangement will enable Apple and IBM to create a competitive advantage on a worldwide basis. a.strategic alliance b.export trading company c.licensing agreement d.joint venture
A
The Mont Blanc Company plans to export expensive consumer gift items to Germany. The best overall economic measure of market potential would be Germany's _______. a.gross domestic product per capita b.balance of trade c.gross national product d.gross domestic product
A
The North American Free Trade Agreement (NAFTA) makes it easier for U.S. businesses to invest in Mexico and Canada and simplifies country-of-origin rules which make it more difficult for _______ to use Mexico as a staging ground for further penetration into U.S. markets. a.Japan b.China c.Cuba d.Russia
A
The United States is not part of which of the following trade alliances? a.Southern Common Market (MERCOSUR) b.Asia-Pacific Economic Cooperation (APEC) c.General Agreement on Tariffs and Trade (GATT) d.North American Free Trade Agreement (NAFTA)
A
The balance of trade is the difference in value between a nation's exports and its imports. Which of the following strategies can be utilized to enable a country to maintain a more favorable balance of trade? a.Limiting imports b.Increasing gross domestic product c.Establishing exchange controls d.Reducing exports
A
Buffalo Trace is one of the oldest distillers of Kentucky bourbon and has been enjoying a sharp increase in sales of its various brands as bourbon has become more popular both at home and abroad. The Japanese consumers were quick to develop a taste for Kentucky bourbon and fueled the growth in revenue for Buffalo Trace as well as other distillers in Kentucky. Buffalo Trace quickly learned the complexities of international trade however when _______ were imposed on its products which raised the price of the bourbon and affected trade in Japan. Buffalo Trace realized that Japan was simply attempting to protect its local alcohol spirit market at the expense of foreign firms competing in Japan. a.quotas b.exchange controls c.embargoes d.import tariffs
D
China attempts to protect its domestic market by levying a(n) _______ on foreign goods such as poultry which results in imported products costing considerably more than products produced or raised within China. a.quota b.exchange controls c.embargo d.import tariff
D
The difference in value between a nation's exports and its imports is called _______. a.balance of payments b.country trade control c.gross domestic product d.balance of trade
D
