CH 15 QUIZ
As an economic community, which of the following contains more than half a billion consumers, accounts for almost 20 percent of the world's imports and exports, and is one of the world's largest single markets? A. India B. Trans-Pacific Partnership C. European Union D. China E. Asia-Pacific Economic Cooperation
European Union
_____________________ eliminated trade barriers and investment restrictions among three large global countries while establishing a single market of 487 million people who produce and consume over $23 trillion of goods and services annually. A. GATT B. CAFTA-DR C. UNASUR D. Trans-Pacific Partnership E. NAFTA
NAFTA
Amazon's Alexa speaks Hinglish long dash —a blend of Hindi and English long dash —with an unmistakable Indian accent. She knows Independence Day is August 15, not July 4, and wishes listeners "Happy Diwali and a Prosperous New Year!" What is this an example of? A. Promotion B. Product adaptation . C. Straight product extension D. Product invention E. Communication adaptation
Product adaptation
_________ are limits countries can set on the amount of foreign imports that they will accept in certain product categories. A. Exchange controls B. Tariffs C. Nontariff trade barriers D. Quotas E. Duties
Quotas
In which of the following does top management tell its marketing people, "Take the product as is and find customers for it"? A. Promotion B. Product invention C. Communication adaptation D. Straight product extension E. Product adaptation
Straight product extension
In the whole-channel view of distribution, the first link, ________, move(s) company products from points of production to the borders of countries within which they are sold. A. price B. channels within nations C. channels between nations D. promotion E. communication adaptation
channels between nations
In the whole-channel view of distribution, the second link, _________, moves products from their market entry points to the final consumers. A. channels between nations B. channels within nations C. final user or buyer D. global value delivery network E. communication adaptation
channels within nations
The General Agreement on Tariffs and Trade (GATT) was ____________________. A. designed to promote world trade by reducing tariffs and other international trade barriers B. designed to promote agricultural trade by reducing tariffs C. created to support domestic trade D. created to promote international green, clean, and sustainable trade E. passed to support lower tariffs on medical devices and pharmaceuticals
designed to promote world trade by reducing tariffs and other international trade barriers
The biggest involvement in a foreign market comes through ________ for the development of foreign-based assembly or manufacturing facilities. A. contract manufacturing B. licensing C. joint venturing D. management contracting E. direct investment
direct investment
When a company begins doing business internationally, it generally starts with ____________________, working through independent international marketing intermediaries. A. licensing B. contract manufacturing C. joint venturing D. indirect exporting E. management contracting
indirect exporting
Why are U.S.-based international companies concerned when the U.S. dollar is strong compared to other currencies?
A strong dollar makes exports from other countries more attractive to the U.S. consumers, causing increased price competition for U.S.-based international companies.
_______ is the simplest way to enter a foreign market. A. Importing B. Tariffs C. Exporting . D. Direct investment E. Joint venturing
Exporting
Companies manage their international marketing activities in at least three different ways. Which of the following is the last step in their organizational activities? A. Direct investment B. Global organization C. Export department D. International division E. Joint venture
Global organization
____ economies are major exporters of manufactured goods, services, and investment funds. A. Subsistence B. Industrial C. Raw-material exporting D. Income distribution E. Emerging
Industrial
Marketers that wish to enter an international environment have to consider the political-legal environment. Of the following, which is NOT among the factors marketers should consider within the political-legal environment? A. Investment opportunities B. International buying C. Monetary regulations D. Government bureaucracy E. Political stability
Investment opportunities
Marketers operating in international environments must study and understand each country's economy. Which of the following are the primary economic factors that reflect a country's attractiveness as a market? A. Its industrial structure and income distribution B. Its industrial structure and technology infrastructure C. Its sociocultural environment and workforce supply D. Its income distribution and GDP E. Its GDP and technology infrastructure
Its industrial structure and income distribution
______ include biases against a company's bids, restrictive product standards, or excessive host-country regulations or enforcement. A. Quotas B. Nontariff trade barriers C. Duties D. Exchange controls E. Tariffs
Nontariff trade barriers
In the whole-channel concept for international marketing, which of the following is NOT a global value delivery network? A. Final user or buyer B. Price escalation C. Channels within nations D. Channels between nations E. International seller
Price escalation
___ is when a company adds the cost of transportation, tariffs, importer margin, wholesaler margin, and retailer margin to its product's factory price. A. Price escalation B. Product invention C. Straight extension D. Product adaptation E. Communication adaptation
Price escalation
Before making a decision to operate in other countries, what must a company understand? A. The governmental regulatory market B. The internal marketing environment C. The international marketing environment . D. The sociocultural marketing environment E. The domestic marketing environment
The international marketing environment
When a company considers international marketing, which of the following is a fundamental issue within the global environment that it must understand thoroughly from the outset? A. Importing regulations B. The socioeconomic situation of target markets C. Exporting regulations D. The international trade system E. The internal trade system
The international trade system
Which of the following replaced GATT in 1995, imposes international trade sanctions, and mediates global trade disputes? A. IMF B. NAFTA C. IBRD D. CAFTA E. WTO
WTO
The purpose of a tariff is to _______________________. A. increase the amount of foreign exchange B. force the protection of local employment C. provide competition to local industry D. force favorable trade behaviors E. increase the amount of foreign imports
force favorable trade behaviors
Many companies get involved in several international markets and ventures. They can be __________, with country managers who are responsible for salespeople, sales branches, distributors, and licensees in their respective countries. A. export departments B. international subsidiaries C. world product groups D. international divisions E. geographical organizations
geographical organizations
FancyFace, a cosmetics firm located in the United States, markets its products in Asian and European countries through independent distributors. In this case, FancyFace has entered international markets through ________. A. joint venturing B. franchising C. joint ownerships D. indirect exporting . E. direct investment
indirect exporting
University Boutiques promotes its brand in new international markets by providing rights to local boutiques to use its patented designs and brand name. In this case, University Boutiques' market-entering strategy is referred to as ________. A. contract manufacturing B. exporting C. joint ownership D. licensing E. management contracting
licensing