Chapter 5 Practice Quiz- Part one (Principles of Marketing)

When a nation pays for imports with its own goods, it is using

A countertrade agreement

You are the operations manager of the North American division of a Brazilian soft-drink maker. Its newest product is Yukka Cola, which is flavored with an extract of the yucca plant. The new drink has received less than enthusiastic reception. What would you advise?

Adopt a more appealing name

According to the text, a blueprint of acceptable behavior that is passed from one generation to the next is called

Culture

Which of the following refers to an economic and political union of 28 member nations that are located primarily in Europe?

European Union (EU)

Which of the following characteristics relates to a joint venture?

Exporting that involves bartering products for other products instead of for currency

A major advantage of exporting through an export agent is that the company does not have to deal with

Foreign currencies and red tape

What name is given to a form of licensing in which a company agrees to provide a name, logo, methods of operation, advertising, products, and other elements associated with company's business, in return for a financial commitment and the agreement to conduct business in accordance with the company's standard of operations?

Franchising

Which of the following refers to the market value of a nation's total output of goods and services for a given period?

Gross domestic product (GDP)

According to Hofstede's cultural dimensions theory, _____ tend to be self-reliant and place a high level of importance on freedom and ambition, while _____ place more value on the team that the individual.

Individualists; collectivists

If Peru wants to purchase machine parts from a German company but lacks euros, it will probably go to which of the following institutions to borrow the euros?

International Monetary Fund

What term describes a trade arrangement in which one company allows another company to use its company name, products, patents, brands, trademarks, raw materials, and/or production processes in exchange for a fee, or royalty?

Licensing

You are the producer of Western Denim brand blue jeans. The pants are in high demand in Pangia; however, shipping costs, tariffs, and trade restrictions are insurmountable. As a last resort, you have entered into an agreement to let a local Pangian manufacturer use your name, materials, and trademark to produce the jeans in exchange for a royalty. This is a

Licensing agreement

A lack of uniformity among international traders exists with regard to issues such as packaging units of goods because most nations, unlike the United Sates, rely on the _______system.

Metric

What is meant by contract manufacturing?

Occurs when a company hires a foreign company to produce a specified volume of the firm's product to specification

What term describes an international economic organization comprised of 30 countries that accept the basic principles of free-market economies and representative democracy, and that recommend and promote policies to improve the well-being of consumers and societies across the world?

Organization of Economic Cooperation and Development (OECD)

What describes the Foreign Corrupt Practices Act (FCPA)?

Outlaws direct payoffs to and bribes of foreign governments or business officials by American companies

What name is given the transfer of manufacturing or other functions (such as data processing) to countries where labor and supplies are less expensive?

Outsourcing

Some Americans argue that ______ should be used to keep domestic wages high and unemployment low.

Protective tariffs

What name is given to the maximum number of units of a particular product that may be imported into a country?

Quota

What name is given to the political and economic agreement among the countries of Bolivia, Argentina, Brazil, Venezuela, Uruguay, and Paraguay?

Southern Common Market

Which of the following refers to a partnership formed to create competitive advantage on a worldwide basis?

Strategic alliance

The ______ loans money to countries throughout the world for reconstruction and development, and also makes loans to poorer countries for infrastructure and social services purposes.

World bank

A specific amount of money levied on each unit of a product brought into the country is called

a fixed tariff

When Weseeyu, Inc., of Rochester, New York, sells contact lenses to people in Moscow, Russia, the company

is exporting the lenses

You are an experienced international business consultant. The government of a less-developed country has enlisted your services. Your new client has sufficient natural resources and an abundant supply of labor but poor infrastructure. Your best advice for improving its economy is

to apply for a World Bank loan