Marketing Ch. 15 - one

Which of the following is true of the World Trade Organization (WTO)? A) It was replaced by the GATT in 1995. B) It increases tariffs and other international trade barriers. C) It lacks the power to impose international trade sanctions. D) It restricts the maximum number of member nations to 100. E) It mediates global trade disputes.

E

A country may place a limit on the volume of imported citrus fruit that is allowed. This is an example of a(n) ________. A) quota B) tariff C) customs duty D) fine E) excise duty

A

The Bread Company promotes its brand in new international markets by providing rights to local bakeries and bistros to use its recipes and brand name. In this case, The Bread Company's market-entry strategy is referred to as ________. A) licensing B) exporting C) joint ownership D) contract manufacturing E) management contracting

A

Which of the following is true of economic communities? A) They are groups of nations organized to work toward common goals. B) They were formed to increase trade barriers between member nations. C) They were formed to mediate global trade disputes. D) They require member countries to establish one currency. E) They tend to improve imports and hinder exports

A

Which of the following statements is true of industrial economies? A) They export their goods to other types of economies for raw materials. B) They have a declining middle class population. C) They depend on agriculture as the primary revenue generator. D) They do not trade goods amongst themselves. E) They consume most of their output and barter the rest for simple goods and services.

A

________ is a method of entering a foreign market by associating with foreign companies to produce or market products or services. A) Joint venturing B) Indirect exporting C) Direct investment D) Importing E) Direct exporting

A

________ is a method of going global in which a company makes agreements with producers in the foreign market to produce its product or provide its service. A) Contract manufacturing B) Direct investment C) Acquisition D) Exporting E) Management contracting

A

A country in South America has large reserves of copper and tin. Mining forms the pillar of its economy. A major part of its revenue is generated from exporting these resources. This country is poor in many other ways. It is a good market for large equipment, tools, supplies, and trucks. Since there are many foreign residents in this country and a wealthy upper class, it is also a market for luxury goods. This country most likely has a(n) ________ economy. A) subsistence B) raw material exporting C) emerging D) developed E) industrial

B

The simplest way to enter a foreign market is through ________. A) joint ownership B) exporting C) direct investment D) licensing E) contract manufacturing

B

Which of the following is a type of joint venture? A) direct exporting B) contract manufacturing C) direct investment D) retailing E) wholesaling

B

________ economies are major exporters of manufactured goods, services, and investment funds. A) Industrializing B) Industrial C) Subsistence D) Raw material exporting E) Emerging

B

Asiana, a fragrance manufacturer located in France, markets its products to the North American and Asian countries through independent distributors. In this case, Asiana has entered into international markets through ________. A) joint ownership B) joint venturing C) indirect exporting D) direct investment E) franchising

C

Japan is a major exporter of manufactured goods, services, and investment funds. Japan also exports its goods to other types of economies for raw materials and semi-finished goods. This is an example of a(n) ________ economy. A) agricultural B) emerging C) industrial D) raw material exporting E) subsistence

C

The ________ established a free trade zone among the United States, Mexico, and Canada. A) Union of South American Nations B) European Union C) North American Free Trade Agreement D) Central American Free Trade Agreement E) Latin American Free Trade Association

C

Which of the following is an advantage of licensing? A) The licensee is not required to invest money in the business. B) The licensor has more control over the licensee than it does in its own operations. C) The licensee gains recognition without having to develop a product from scratch. D) The licensor earns profits without having to share its intellectual property with anyone. E) The licensor faces no threats of competition from the licensee after the contract ends.

C

Which of the following is an example of a nontariff trade barrier? A) a sales tax B) customs duty C) a host-country regulation D) excise duty E) an import quota

C

Which type of economy consumes most of its output and barters the rest for simple goods and services? A) industrial economy B) developed economy C) subsistence economy D) emerging economy E) raw material exporting economy

C

Walmart's decision to suspend its planned expansion into India's huge but fragmented retail market due to obstacles put in place by the host nation to protect its mom-and-pop retailers is an example of ________. A) tariffs B) excise duties C) quotas D) nontariff trade barriers E) exchange controls

D

Which of the following is a disadvantage of licensing? A) The licensing company gains entry into a foreign market at a high risk. B) It takes a lot of time for the licensee to gain production expertise and name. C) Licensing is a complex way for a manufacturer to enter international marketing. D) The licensor potentially creates a competitor in the form of the licensee. E) The licensee is restricted from gaining knowledge about the licensor's intellectual property.

D

Which of the following is true about joint venturing? A) Management contracting is highly risky for the domestic firm. B) Contract manufacturing gives significant control to the domestic firm. C) Licensing is a highly complex method for entering global markets. D) A host country partner is necessary for selling or marketing products. E) Companies are required to invest in the construction of foreign-based facilities.

D

Which of the following is true of exporting? A) It is the most complex way to enter a foreign market. B) It involves the association of companies with host country partners. C) It typically requires products to be extensively modified for the foreign market. D) It involves the least change in a company's product lines. E) It involves a huge investment if done through independent international distributors.

D

Which of the following is true of raw material exporting economies? A) These economies are major exporters of agricultural products. B) These economies are poor markets for large equipment and trucks. C) These economies are major exporters of manufactured goods, services, and investment funds. D) These economies are rich in one or more natural resources but poor in other ways. E) These economies consume most of their output and barter the rest.

D

Which of the following is true of the Uruguay Round of the WTO? A) It promoted short-term global trade growth. B) It increased the world's merchandise tariffs by 50 percent. C) It reduced the influence of the WTO in agriculture. D) It toughened the international protection of intellectual property. E) It consisted of discussions that lasted for two years.

D

A country's ________ shapes its product and service needs, income levels, and employment levels. A) quotas B) tariffs C) raw material export economy D) subsistence economy E) industrial structure

E

A tax on an imported product designed to raise revenue or protect domestic firms is referred to as a(n) ________. A) exchange B) excise C) fine D) quota E) tariff

E

An emerging economy is one which ________. A) imports large amounts of finished textiles and automobiles B) offers few market opportunities for imported goods C) consumes all or most of its output D) needs few imports of raw textile materials and steel E) has a rapid growth in manufacturing

E

Providing a host-country partner the right to use a company's manufacturing process, trademark, patent, trade secret, or other item of value is referred to as ________. A) joint ownership B) direct exporting C) direct investment D) management contracting E) licensing

E

The difference between direct and indirect exporting is that indirect exporting involves ________. A) higher risks B) self-handling of exports C) greater returns D) more product alterations E) less investment

E

Which of the following is most likely true of a global firm? A) A global firm typically operates from one country. B) A global firm engages in joint partnerships overseas. C) A global firm sees the world as many different markets. D) A global firm maximizes the importance of national boundaries. E) A global firm manufactures and markets goods wherever it can do the best job.

E

Which type of economy consists mostly of households with very low family incomes? A) post-industrial B) developed C) emerging D) industrial E) subsistence

E