Ch 7 Marketing

Select all that apply Which two of the following are advantages of a joint venture as a global market-entry strategy?

A foreign government may require or encourage a local partnership. An international partner can provide financial or managerial support.

The most recent example of a trade war is the dispute between the United States and Blank____

China

Select all that apply Which two are examples of trade agreements signed by several countries to lift many trade barriers between them?

EU USMCA

When the European countries signed a trade agreement creating a free trading zone between the countries, they formed a transnational trading group called Blank______.

EU european union

Select all that apply What are the two main components of the political and regulatory climate assessment that a global company must address?

How difficult is it to navigate the trade regulations in order to do business there? How stable is the country in terms of its government?

Select all that apply For which reasons would marketers consider a cross-cultural analysis important? (Check all that apply.)

It tells marketers what is represented by symbols. It tells marketers what a society values. It tells marketers what customs are considered normal and expected.

Match the following strategies for selling products globally with the correct definition. Instructions

Product extension matches Choice Selling virtually the same product in other countries. Product adaption matches Choice Changing a product to make it more appropriate for a country's climate or consumer preferences. Product invention matches Choice Creating a totally new product to satisfy common needs across countries.

What are the three primary ways a product can be sold globally?

Product extension, product adaptation, and product invention

Select all that apply Which two statements are true of the WTO?

The WTO decides trade disputes between members. The WTO is an established permanent institution rather than being simply an agreement.

Select all that apply The EU has simplified the way multinational companies market their products in which two ways?

There are fewer regulatory restrictions on transportation. Products and packaging can be more uniform for distribution across Europe.

In which of the following ways do successful global marketers handle their firm's global marketing programs?

They will standardize them whenever possible.

Select all that apply What two situations likely exist in developing countries that cause marketers to adapt their global distribution strategies?

Traditional channels that have been used do not exist. Transportation and communication systems are underdeveloped.

Select all that apply What three countries are part of the USMCA?

US Mexico Canada

The Blank______ changed tariff policies between Canada, Mexico, and the United States for selected products and updated trade practices pertaining to each country's regulatory practices.

USMCA

Exporting occurs when Blank__

a firm produces a product in its own country and sells it in another

Which best describes the European Union?

a group of European countries that signed a trade agreement for the purpose of promoting free trade within their countries

The higher a country's purchasing power, the more likely it is to also have Blank____

a large proportion of middle-income households

A quota is Blank_____

a restriction placed on the amount of a product allowed to enter or leave a country

A tariff is Blank______ imposed on a product imported into a country.

a tax

When Wrigley's offers its gum in grapefruit, cucumber, and tea-flavors in China, it is an example of a product Blank______ strategy.

adaptaion

A product Blank______ strategy is being used when a firm changes a product in some way to make it more appropriate for consumer preferences in another country.

adaptation

Gross domestic product is the monetary value of Blank___

all products and services produced in a country during one year

Global marketers sometimes have problems translating promotional material into the foreign country's language, leading to miscommunication issues. The best way to avoid problems in translation is to use Blank_

back translation

Global marketers sometimes have problems translating promotional material into the foreign country's language, leading to miscommunication issues. The best way to avoid problems in translation is to use Blank___

back translation

The Foreign Corrupt Practices Act makes it a crime for U.S. corporations to Blank____

bribe a foreign government official

Select all that apply In what two ways do governments implement protectionism measures?

by setting quotas by imposing tariffs

Direct investment occurs when a domestic firm Blank__

chooses to create and own a foreign subsidiary or division.

Direct investment occurs when a domestic firm Blank____

chooses to create and own a foreign subsidiary or division.

Global ____ among firms exists when they originate, produce, and market their products worldwide.

competition

For a U.S.-based company trying to sell its products overseas, the native language of different countries can Blank______ the company's ability to market their products to foreign customers

complicate

When a country or a firm exchanges goods for other goods instead of money, it engages in Blank____

countertrade

The term globalization refers to the Blank____

creation of economic, cultural, political, and technological interdependence among individual national institutions and economies.

The main factors analyzed in a(n) Blank______ are values, customs, cultural symbols, and language.

cross-cultural analysis

Semiotics is a field of study dealing with Blank_

cultural symbols and their meaning

What is considered normal and expected about the way people do things in a specific country is known as Blank___

custom

The fact that in Japan women give men chocolates for Valentine's day is an example of how Blank______ can influence behavior in different societies.

customs

Assessing the political and regulatory climate for marketing in a country or region of the world involves not only identifying the current climate but also Blank__

determining how long a favorable or unfavorable climate will last

A joint venture is less risky than Blank_

direct investment

When a domestic firm creates and owns a foreign subsidiary or division, it is using which global entry strategy?

direct investment

Global marketers may devise creative solutions for getting their products to hard-to-reach consumers in developing countries. This type of solution is part of the firm's Blank______ strategy.

distribution

__ is when a firm sells a product in a foreign country below its domestic price or below its actual cost. (one word)

dumping

The clandestine collection of trade secrets or proprietary information about competitors is known as Blank_

economic espionage

Select all that apply What three uncontrollable environmental variables affect global marketing practices in strikingly different ways than those in domestic markets?

economic factors political-regulatory factors cultural factors

A country's communications, transportation, financial, and distribution systems together are known as its Blank__

economic infrastructure

Some consumers in Detroit feel it is wrong to purchase vehicles made in other parts of the world instead of supporting local manufacturers, which is an example of consumer Blank___

ethnocentrism

Select all that apply Select the four options for entering a global market.

exporting direct investment licensing joint venture

Match each of the following global market-entry strategies with the correct definition.

exporting-producing products in one country and selling them in another-licensing-offering the right to a trademark patent trade secret or other intellectual property for a fee-joint venture-infesting together with a local firm to create a local business that shares control and profits-direct investment-investing in and owing a foreing subsidiary or division

Coca-Cola uses a product Blank______ strategy when it sells virtually the same product in other countries.

extension

U.S. legislation known as the Blank______ makes it a crime for companies to bribe officials of a foreign government in order to obtain or retail business in another country.

foreign corrupt practices act

A _____ brand has the same product formulation, delivers the same benefits to consumers, and uses consistent advertising across multiple countries and cultures.

global

A brand that is marketed under the same name in multiple countries with similar and centrally coordinated marketing programs is known as a(n) Blank______ brand.

global

Companies that seek to sell their product globally often look for Blank______ consumers, those that present similar needs and wants across countries.

global

The youth market exhibits similar needs and wants throughout the world, and is a good example of a(n) Blank______ consumer.

global

A joint venture is a type of Blank__

global entry strategy

Technology allows people to connect from distant parts of the world, allowing the growth of Blank___

global markets

____ is the focus on creating economic, cultural, political, and technological interdependence among individual national institutions and economies.

globalization

Even though in some countries per capita income is very low, marketers should realize that Blank______ might allow consumers to purchase their products.

government subsidies

A firm selling televisions knows from marketing research that when consumers in developing countries reach on average a yearly income equivalent to $1,000 they are more likely to purchase one of their televisions. Such a low income is sometimes enough because Blank____

governments in developing countries often subsidize necessities, leaving money for other items

For the global marketer, consumer ethnocentrism is important to understand because Blank__

imported products can be rejected by local consumers on that basis alone

Global expansion often begins with exporting. Using a local intermediary to distribute the exported goods is known as Blank______.

indirect exporting

In China, where outside of major cities there are many unnavigable roads, foreign companies have to adapt their distribution strategies. Thus, before entering such a market, a firm must investigate the economic Blank__

infrastructure

A(n) ___ venture is a global market-entry strategy that creates a partnership between a local and a foreign firm that will share ownership, control, and profits from the new company. (one word)

joint

Indirect exporting is an entry strategy that involves the Blank______ financial risk and allows a(n) Blank______ return to the firm.

least; limited

General Mills has a(n) Blank______ arrangement with French cooperative Sodima to produce and sell its Yoplait yogurt in the United States.

licensing

When a company offers the right to a trademark, patent, trade secret, or other intellectual property in return for a royalty or a fee, it is known as a(n) Blank______ arrangement.

licensing

The EU, in essence, Blank______ trade barriers for its member countries when it became an economic union.

lowered

Multidomestic marketing strategies are associated with Blank______ firms and global marketing strategies are associated with Blank______ firms.

multinational; transnational

Select all that apply What three industries are well-known global competitors?

pharmaceutical automobile aerospace

The practice of shielding one or more industries within a country's economy from foreign competitions through the use of tariffs and quotas is known as Blank______.

protectionism

A country's income distribution offers a reliable picture of that country's Blank___

purchasing power

In the context of global trade, dumping is Blank__

selling a product in a foreign country below its domestic price or below its actual cost

A field of study that examines the correspondence between symbols and their role in the assignment of meaning for people is known as Blank____

semiotics

A personally or socially preferable mode of conduct or state of existence that tends to persist over time is called Blank____

societal value

The fact that in India cows are considered sacred and not to be eaten by 85 percent of the population is an example of Blank___

societal value

A global environmental scan, marketing research, and judgments based on experience will determine the extent of Blank______ that global marketing programs will have.

standardization or customization

Cultural _ are things that represent ideas and concepts in a specific culture.

symbol

Different cultures attach different meanings to things; a cultural Blank______ is anything that represents ideas and concepts of a specific culture.

symbol

A(n) Blank______ is a tax levied on a good imported into a country.

tariff

Select all that apply What two elements are used in a trade war?

tariff quotA

Changes in which of the following has been the driving force for growth in global markets?

technology

Which legislation makes the theft of trade secrets by foreign entities a federal crime in the United States?

the Economic Espionage Act

Product extension works best when Blank_

the consumer abroad exhibits similar needs and uses for the product compared to domestic consumers

Currencies fluctuate against each other every day. The price of one's country's currency expressed in terms of another country's is called Blank____

the currency exchange rate

When people from the United States travel to countries in Europe, they might check to see how the U.S. dollar compares to the euro. In doing so, they are checking Blank__

the currency exchange rate

A nation's balance of trade is Blank___

the difference in monetary value between its exports and imports

The primary difference between indirect and direct exporting is that the former involves Blank______ while the latter does not.

the use of intermediaries

In an environmental scan, cultural, economic, and political-regulatory factors are most important for the firm operating globally because Blank__

these factors can have the most striking differences from the domestic market

Firms spend millions of dollars to develop brand names that have no preexisting meaning in any known language because Blank_____

they want to avoid potential embarrassment that language confusion can cause

For what reason was the WTO initially formed?

to address an array of world trade issues

Select all that apply Why do nations enter into trade agreements? (Select all that apply)

to enhance their individual economies manage and promote trade activities between member nations

While a(n) Blank______ firm views the world as one market and emphasizes cultural similarities across countries rather than differences, a(n) Blank______ firm views the world as consisting of unique parts and markets to each part differently.

transactional; multinational

Back translation can be defined as Blank__

translating material back to its original language using a new interpreter to check if it retains its meaning

Select all that apply Select the types of companies that compete in the global marketplace. (Select all that apply)

transnational firms international firms multinational firms

An import quota seeks to guarantee that domestic industries Blank___

will retain a certain percentage of their domestic market