MKTG 4400 Ch. 9 Multiple Choice

surplus commodity product

A market in which the only marketing function performed is exchange is most like to be classified under the _____ stage.

less-developed countries

According to the United Nations' stages of economic development for classifying countries with respect to levels of industrialization, _____ consist of industrially developing countries just entering world trade with relatively low per capita income.

least-developed countries

According to the United Nations' stages of economic development for classifying countries with respect to levels of industrialization, a country that is industrially underdeveloped, agrarian, has subsistence society with rural populations and extremely low per capita income levels falls under the category of _____.

More-developed countries

According to the United Nations' stages of economic development for classifying countries with respect to levels of industrialization, which category does an industrialized country with high per capita income fall under?

commercial-transition

According to the evolution of the marketing process, when the only marketing functions performed are demand creation, physical distribution, and market information analysis, the marketing process is in the _____ substage.

big emerging market

Alexia is geographically large and represents a sizable market for a wide range of products. It has a potential for significant growth. It is considered as the regional economic driver. Based on this information, Alexia can be classified as a(n) _____.

they import less than smaller markets

All of the following are traits of big emerging markets (BEMs) EXCEPT:

Germany is a member of Mercosur

All of the following statements are true regarding Mercosur EXCEPT that:

CARICOM

Bahamas is a member of _____.

a common currency for all members

CARICOM established the CSME (CARICOM Single Market and Economy) with the goal of:

more-developed countries

Canada is classified under the category of _____.

newly industrialized

Chile, Brazil, Mexico, South Korea, Singapore, and Taiwan are _____ countries.

China

During the early growth of many countries, the first large open market was _____.

have rapidly changing consumption patterns

Dynamic economies differ from static economies in that dynamic economies:

distribution

Economic planners are most likely to be least concerned with the problems related to _____.

production

Economic planners are often more _____ oriented than marketing oriented.

coexistence of three distinct kinds of markets in each country

Estimating market potential in less-developed countries involves additional challenges, but most of the difficulty arises from the _____.

moving goods from Mexico to the United States is cheaper and faster than moving them from Sri Lanka.

Given the fact that NAFTA is now effective among the U.S., Mexico and Canada, an American company which has its production plant in Sri Lanka will be willing to relocate its production plant to Mexico mostly because:

Mass production

Identify the substage in the evolution of the marketing process, when the only marketing functions performed are demand creation and physical distribution.

big emerging market

If a market is characterized as being geographically large, has significant population, is a regional economic driver, and has undertaken significant programs of economic reform, the market is classified as a(n) _____.

Canada

In which of the following countries is the literacy rate 100 percent?

big emerging markets

Markets that are geographically large, have strong growth rates, are regional economic drivers and represent sizable markets for a wide range of products are known as _____.

food

More household money goes for _____ in emerging markets than in developed markets.

obtained significant amount of loans from World Bank

Most newly industrialized countries (NICs) have moved away from restrictive trade practices and instituted significant free market reforms. As a result these countries have:

attracted both trade and foreign direct investment

Most newly industrialized countries (NICs) have moved away from restrictive trade practices and instituted significant free market reforms. As a result these countries have:

is a comprehensive trade agreement that addresses and improves all aspects of doing business within North America

NAFTA differs from Mercosur in that NAFTA:

have moved away from restrictive trade practices and instituted significant free market reforms

Newly industrialized countries (NICs) differ from less-developed countries in that NICs:

the differential treatment of member countries according to their level of economic development

One of the most important aspects of LAIA that differs from LAFTA, its predecessor, is:

infrastructure

Paved roads, railroads, seaports, communication networks, and financial networks are illustrations of _____.

the release of capital to invest in strategic areas

Privatization of state-owned enterprises results in _____.

no longer seems relevant in the rapidly industrializing world

The United Nations' classification of stages of economic development has been criticized because it:

economic development

The level of market development roughly parallels the stages of _____.

to establish a Latin American common market

The long-term goal of the LAIA (Latin American Integration Association), better known by its Spanish acronym, ALADI, is:

mass production

The marketing process in the U.S between 1885 to 1914 mainly focused on _____.

Caribbean Community and Common Market

The success of the Caribbean Free Trade Association led to the creation of the _____.

Canada, Mexico, and the United States

The three members of the North American Free Trade Agreement (NAFTA) are:

consists of population that moves from the country to the large cities

The transitional sector differs from the modern urban sector in that the transitional sector:

Europe after World War II

What is happening in BEMs today is analogous to what happened in:

release of capital to invest elsewhere

When countries sell off state-owned enterprises, it usually results in a(n):

exchange

When the marketing process is characterized by mass distribution, all of the following marketing functions are performed EXCEPT _____.

Mexico

Which country announced that it would seek free trade with the United States immediately after the ratification of the United States-Canada Free Trade Area (CFTA)?

DR-CAFTA

Which is the comprehensive free trade agreement among Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, Nicaragua, and the United States that includes a wide array of tariff reductions aimed at increasing trade and employment?

Rules of origin

Which key provision of NAFTA restricts Japan from assembling autos in Mexico and avoiding U.S. or Canadian tariffs and quotas, unless the auto had a specific percentage of Mexican (i.e., North American) content?

Agricultural and agro-industrial products

Which of the following accounts for the lion's share of Mercosur exports to Europe?

China

Which of the following countries is NOT a member of the Caribbean Community and Common Market (CARICOM)?

Cuba

Which of the following countries is a member of the Latin American Integration Association (LAIA, aka ALADI)?

Costa Rica

Which of the following countries is a member of the free trade agreement DR-CAFTA?

The United States

Which of the following countries is a part of the free trade area known as CFTA?

Mexico

Which of the following countries is considered as a BEM (big emerging market)?

Argentina

Which of the following countries was involved in the formation of the free trade group Mercosur?

Rapid increase in population

Which of the following is NOT a factor that has contributed to the rapid economic growth of NICs (newly industrialized countries)?

The expansion of military interventions around the world

Which of the following is NOT one of the factors changing the way countries trade and prosper in the twenty-first century?

Germany

Which of the following is a fully industrialized country?

Inflated public-sector bureaucracies

Which of the following is a result of state ownership?

Extent of social overhead capital

Which of the following is an indicator of economic development?

Economic level

Which of the following is considered as the single most important environmental element of a country to which the foreign marketer must adjust the marketing task?

NAFTA

Which of the following is the largest common-market agreement in the Americas?

Mercosur

Which of the following is the second-largest common-market agreement in the Americas?

It often leads to modernization

Which of the following is true about privatization of state-owned enterprises?

State ownership has resulted in complicated and unpredictable regulatory environments.

Which of the following is true about state-owned enterprises (SOEs)?

Foreign investors are seen as vital partners in economic development

Which of the following is true about the present state of foreign businesses in most developing countries?

It provided only for the elimination of tariffs and other trade barriers between the United States and Canada.

Which of the following is true of the CFTA?

These countries have high per capita incomes

Which of the following statements is true regarding MDCs (more-developed countries)?

The Internet enables smaller firms in emerging economies to sell into a global market

Which of the following statements is true regarding the Internet?

Mass distribution

Which of the following substages best characterizes the United States today with respect to the evolution of the marketing process?

Treaty of Asuncion

Which of the following treaties provided the legal basis for Mercosur?

Self-sufficient

With respect to the evolution of the marketing process, which of the following would be considered to be the most fundamental substage (first substage)?

The United Nations

____ classifies a country's stage of economic development on the basis of its level of industrialization into three categories and the three categories are MIDCs, LDCs, and LLDCs.

Mercosur

_____ is a free trade group formed by Argentina, Brazil, Paraguay, and Uruguay.

Marketing

_____ is an economy's arbitrator between productive capacity and consumer demand.

Economic development

_____ refers to an increase in national production that is reflected by an increase in the average per capita gross domestic product (GDP) or gross national income (GNI).

NAFTA

_____ required the United States, Canada and Mexico to remove all tariffs and trade barriers over 15 years, and beginning in 2008, all tariff barriers were officially dropped.