Ch.9

Which of the following is used to help maintain a more favorable balance of trade by a country? a) Limiting imports b) Limiting exports c) Establishing exchange controls d) Increasing gross domestic product e) Changing political systems

Limiting imports

Swiss-based Nestlé has taken a global approach to marketing its chocolate products. Which of the following is most easily standardized? a) Product b) Promotion c) Distribution d) Advertising e) Price

Product

Before the 1990s, most firms entered international markets a) globally and quickly. b) incrementally and slowly. c) incrementally and quickly. d) domestically and slowly. e) regionally and quickly.

incrementally and slowly.

If Germany, in an attempt to bolster the sales of its own auto manufacturers, decided to limit the number of automobiles that could be brought in from other countries, Germany would be using a(n) a) embargo. b) boycott. c) exchange control. d) import tariff. e) quota.

quota.

When a glove manufacturer in China is allowed to sell only a certain number of plastic gloves into Japan, that firm is facing a(n) a) tariff. b) embargo. c) restrictive product standard. d) quota. e) balance of trade restriction.

quota.

A ___________ is an organization that links buyers and sellers in different countries but is not involved in manufacturing. a) trading company b) exporter c) joint venture d) strategic alliance e) licensee

trading company

Approximately ____ of the world's purchasing power is outside of the United States. a) 1/10 b) 1/3 c) 2/3 d) 1/2 e) 9/10

2/3

In relation to international marketing, which of the following best describes direct ownership? a) A company owns its own manufacturing facilities. b) A company forms an alliance with a similar company in a foreign country. c) Foreign companies contract with manufacturers in other countries. d) A company owns subsidiaries or facilities in foreign countries. e) Two companies from different nations have interests in each other's facilities.

A company owns subsidiaries or facilities in foreign countries.

Many marketers claim that ____ will become the world's largest market. a) Japan b) the United States c) China d) Thailand e) India

China

Which of the following describes a company hiring a foreign firm to produce a designated volume of its product to specification? a) Licensing b) Contract manufacturing c) Exporting d) Importing e) Direct investment

Contract manufacturing

Johnston Chemicals' president is very excited about the possibility of the firm's British subsidiary having access to customers in the entire EU. He realizes that it will be some time before this area truly becomes one market, primarily because of differences in which of the following? a) Available advertising media b) Cultural factors c) Legal challenges d) Technological advances e) Economic environmental factors

Cultural factors

The trade alliance that includes Brazil, Argentina, Chile, and other countries is known as a) OPEC. b) APEC. c) MERCOSUR. d) NAFTA. e) the Common Market.

MERCOSUR.

____ refers to the idea that morality varies from one culture to another and that business practices are therefore differentially defined as right or wrong by particular cultures. a) The self-reference criterion b) Global ethics c) Economic relativism d) Cultural relativism e) Moral relativism

Cultural relativism

Toshiba Electronics is very interested in taking advantage of business opportunities in India but does not have access to India's market. Toshiba has the patent on a low-cost, quality computer system that could assist small businesses in India. Sony Computer, Toshiba's competitor, is experienced in India's small business market but does not have a computer comparable to Toshiba's. If Toshiba and Sony work together to utilize these strengths to seize this opportunity in India, what type of business structure would they likely use? a) Trading company b) Strategic alliance c) Licensing d) Direct ownership e) Exporting

Strategic alliance

Which of the following agreements provides a forum for tariff negotiations, reducing trade restrictions, resolution of international trade problems, and ground rules for international trade? a) The World Trade Organization b) The North American Free Trade Agreement c) The Latin American Free Trade Agreement d) The European Union Free Trade Agreement e) The General Agreement on Tariffs and Trade

The World Trade Organization

At the heart of the ____ are agreements that provide legal ground rules for international commerce and trade policy. a) United Nations b) GATT c) MERCOSUR d) WTO e) APEC

WTO

If a newly formed country wanted to increase its international trade and reduce worldwide tariffs, it would most likely try to become a part of a) NAFTA. b) WTO. c) MERCOSUR. d) APEC. e) EU.

WTO.

Levi Strauss markets its denim jeans in many countries and develops its marketing strategy as if the world were a single market. This approach to selling a standardized product in all countries represents which type of international marketing? a) Exporting b) Accidental exporting c) Limited exporting d) Licensing e) Globalization of markets

Globalization of markets

The Common Market of the Southern Cone (MERCOSUR) includes countries from a) Africa. b) Asia. c) Central America. d) South America. e) the Pacific Islands.

South America.

Which of the following would be a benefit to a franchiser, such as Jiffy Lube, in expanding into international marketing? a) There are no risks involved with allowing a foreign franchisee. b) The franchiser does not have to put up a large capital investment. c) The franchiser does not have to share its name or operational procedures. d) The franchisee only pays a set fee every month to the franchiser. e) An equal partnership is formed between the franchiser and franchisee.

The franchiser does not have to put up a large capital investment.

The gross domestic product is a) a measure of the profit made by all firms in a nation. b) the average annual earnings per person in a nation. c) a measure of the types of products produced by a nation. d) an overall measure of a nation's economic standing. e) a ratio of domestic products to products produced in foreign countries.

an overall measure of a nation's economic standing.

The Foreign Corrupt Practices Act of 1977 makes it illegal for U.S. firms to a) attempt to make large payments or bribes to influence policy decisions of foreign governments. b) offer foreign businesses any type of incentive for purchasing their company's products and services. c) change their ethical standards when dealing with foreign firms. d) give even small tips or gifts in countries where such gifts are customary business practices. e) introduce any type of corruption into foreign businesses that have higher ethical standards than those of the U.S. firm.

attempt to make large payments or bribes to influence policy decisions of foreign governments.

The ___________ is the difference in value between a nation's exports and its imports. a) net trade value b) export/import ratio c) gross domestic product d) balance of payments e) balance of trade

balance of trade

The role of export agents is to a) bring buyers and sellers from different countries together and collect a commission for arranging sales. b) purchase products from different companies and sell them to foreign countries. c) help a firm to make direct investments in foreign countries. d) contact domestic firms about the opportunities available in exporting. e) arrange for licensing agreements between domestic and foreign firms.

bring buyers and sellers from different countries together and collect a commission for arranging sales.

If The Limited Company relies on hiring a foreign textile manufacturer to produce a designated amount of clothing for its Express, Limited, and other stores, it is using a) exporting. b) franchising. c) contract manufacturing. d) a joint venture. e) licensing.

contract manufacturing.

If a certain country considered handshakes in business transactions to be taboo and preferred to use nodding, this would be an example of differences in _____ forces. a) cultural b) political c) economic d) technological e) regulatory

cultural

Selling products that are not in demand in all world markets, such as hand-powered washing machines for use in countries where electricity is not universally available, represents an international marketing strategy focusing on a) internationalization. b) culturalization. c) nationalization. d) globalization. e) customization.

customization.

Which of the following alliances/agreements is the United States not a part of? a) NAFTA b) APEC c) GATT d) WTO e) MERCOSUR

MERCOSUR

Globalization of markets requires developing marketing strategies as if the world were one market. Which of the following marketing mix variables is most difficult to standardize for globalization? a) Brand name b) Package c) Media allocation d) Labels e) Product characteristics

Media allocation

In many developing countries around the world, technology is enabling opportunities to "leapfrog" existing technology. What does this mean? a) These countries are able to forgo current technological advances in order to wait for even better technology to be developed. b) More advanced technology is reaching these countries even though they lack technological infrastructures. c) Technological advances are often offered at prices considerably lower than in well-developed countries. d) The technology in developing countries is rapidly surpassing the technology in well-developed countries. e) The existing technological infrastructures in these countries are rapidly being replaced by newer, more advanced technology.

More advanced technology is reaching these countries even though they lack technological infrastructures.

The agreement between the United States, Canada, and Mexico that merges these three countries into one marketplace is called a) EU. b) MERCOSUR. c) APEC. d) NAFTA. e) GATT.

NAFTA.

Walmart is currently expanding its stores into Canada and Mexico. This expansion is being facilitated by the a) European Union. b) North American Free Trade Agreement. c) Pacific Rim Unification Act. d) International Retail Alliance Association. e) Latin American Free Trade Association.

North American Free Trade Agreement.

Caterpillar would like to better understand factors that would affect its ability to market construction equipment in various countries. Which of the following forces determine how trade barriers affect Caterpillar's marketing efforts? a) Political and legal b) Interpersonal c) Social d) Technological e) Industrial

Political and legal

Government restrictions on the amount of a particular country's currency that can be bought or sold are known as a) embargoes. b) quotas. c) exchange controls. d) import controls. e) balance of trade controls.

exchange controls.

Exporting, licensing, and using trading companies are preferred modes of international market entry for firms with a(n) ________ structure. a) international division b) internationally integrated c) export department d) geographic area e) matrix

export department

The extent of Raytheon's participation in global business is selling the batteries it manufactures to companies in Spain. In this case, Raytheon is a(n) a) trading company. b) importer. c) exporter. d) franchiser. e) contract manufacturer.

exporter.

MTV can now be seen by most of the world's population. This is an example of a) globalization. b) customization. c) licensing. d) nationalization. e) regionalization.

globalization.

The World Trade Organization accomplishes all of the following except a) educating companies about international trade rules. b) lending money to businesses interested in developing international markets. c) serving as a forum for trade negotiations. d) helping settle trade disputes. e) providing legal ground rules for international commerce.

lending money to businesses interested in developing international markets.

Sometimes business partnerships are formed between traditional rivals competing for market share in the same product class. These partnerships are known as a) trading companies. b) contract manufacturers. c) joint ventures. d) strategic alliances. e) licenses.

strategic alliances.

Select the true statement. a) Legislation regulating marketing in many foreign countries is being eased. b) A government's attitude toward cooperation with importers has little impact on marketing to that country. c) Refusing to give payoffs and bribes in some foreign countries may put a marketer at a competitive disadvantage. d) Bribes and payoffs are considered unethical in all countries and cultures. e) Bribes and payoffs are supported by U.S. trade policies under certain conditions.

Refusing to give payoffs and bribes in some foreign countries may put a marketer at a competitive disadvantage.

Henderson Synthetics' management believes that several of the firm's products could have sizable markets in other countries. To maintain a low level of commitment with minimum effort and cost, Henderson should engage in international marketing through a) contract manufacturing. b) exporting. c) joint ventures. d) licensing. e) subsidiaries.

exporting.

A subsidiary in a foreign country generally operates under a) the laws of the parent company's home country. b) foreign management in order to develop a local identity. c) strict management control from the home country's executives. d) the regulations set forth by the International Trade Agreement. e) a team of managers from the distant parent company.

foreign management in order to develop a local identity.

A special form of licensing in which one company grants another company the right to market its product in accordance with its standards in exchange for a financial commitment is called a) a joint venture. b) contract manufacturing. c) direct licensing. d) franchising. e) a strategic alliance.

franchising.

A limit on the amount of goods an importing country will accept for certain product categories during a specified time period is called a(n) a) exchange control limit. b) embargo. c) quota. d) import tariff. e) balance limit.

quota.

What is the greatest advantage to an organization of having a subsidiary in a foreign nation? a) Avoidance of all U.S. laws b) Increase in cross-cultural approaches to management that allows subsidiaries to develop their own identity c) Increased trend toward nationalistic marketing approaches d) Greater amount of standardization of the marketing mix e) Greater amount of security from government nationalization and other anticompetitive measures

Increase in cross-cultural approaches to management that allows subsidiaries to develop their own identity

The contracting of noncore operations or jobs from internal production within a business to an external entity that specializes in that operation is known as a) outsourcing. b) licensing. c) franchising. d) contract manufacturing. e) contract sourcing.

outsourcing.

According to your text, ____ are small technology-based firms operating in international markets within two years of their establishment and realizing as much as 70 percent of their sales outside the domestic home market. a) "natural globals" b) "multinational corporations" c) "born globals" d) "born multinationals" e) "multinational enterprises"

"born globals"

What is the primary distinction between a joint venture and a strategic alliance in international marketing? a) Strategic alliances are only formed between companies from well-developed countries whereas joint ventures are between companies from economically-diverse countries. b) A joint venture involves only two companies whereas a strategic alliance is formed between three or more companies. c) A strategic alliance is formed by companies who have traditionally been rivals, which is not the case with a joint venture. d) A joint venture is formed between companies with dissimilar product offerings while a strategic alliance is formed between companies with similar product offerings. e) A joint venture is simply a financial investment in a foreign firm while a strategic alliance involves more than just financial support.

A strategic alliance is formed by companies who have traditionally been rivals, which is not the case with a joint venture.

Which of the following trade alliances differs from others in its commitment to facilitating business and its practice of allowing the private sector to participate in a wide range of activities? a) NAFTA b) EU c) MERCOSUR d) WTO e) APEC

APEC

When Smithson Graphics decided to go international with its marketing effort, it adopted a global approach. Which factors did SG most likely experience difficulty as the firm applied a global strategy for marketing? a) Branding b) Product characteristics c) Packaging d) Labeling e) Advertising

Advertising

Which of the following is not true of NAFTA? a) The agreement has a long adjustment phase-in time period. b) Increased competition should lead to a more efficient market. c) It will provide additional opportunities for the United States in long-term affiliations with other countries in the Western hemisphere. d) It is controversial. e) Business licensing requirements have been increased.

Business licensing requirements have been increased.

IKEA, a Swedish retailer of contemporary furniture, operates several stores in various Scandinavian countries, as well as in the United States and Canada. Which of the following describes IKEA's level of commitment to international marketing? a) Licensing b) Direct ownership c) Exporting d) A trading company e) A joint venture

Direct ownership

Once a company makes a long-term commitment to a foreign market that has a promising political and economic environment, which of the following options then emerges as a possibility? a) Exporting b) Joint venture c) Limited exporting d) Direct ownership e) Licensing

Direct ownership

Which of the following lists the levels of involvement in global marketing from the lowest to the highest? a) International marketing, limited exporting, domestic marketing, globalized marketing b) Limited exporting, domestic marketing, globalized marketing, international marketing c) Globalized marketing, international marketing, limited exporting, domestic marketing d) Domestic marketing, globalized marketing, international marketing, limited exporting e) Domestic marketing, limited exporting, international marketing, globalized marketing

Domestic marketing, limited exporting, international marketing, globalized marketing

___________ can force businesspeople to buy and sell foreign products through a central agency, such as a central bank. a) Embargoes b) Export tariffs c) Quotas d) Import tariffs e) Exchange controls

Exchange controls

In China, the price of imported Scotch is $30 per glass as opposed to Scotch from China which is $3. Which of the following do you think accounts for the difference in price? a) Exchange control b) Balance of trade c) Import tariff d) Embargo e) Export tariff

Import tariff

Which of the following is often used to raise revenue for a country and/or to protect domestic products? a) Quota b) Warning label c) Embargo d) Import tariff e) Exchange control

Import tariff

Which of the following centralizes all of the responsibility for international operations? a) Product division structures b) Export department structures c) Internationally integrated structures d) International division structures e) Global matrix structures

International division structures

Which of the following is most likely to engage in direct ownership activities internationally? a) Internationally integrated structures b) International division structures c) Export department structures d) Import department structures e) Outsourcing structures

Internationally integrated structures

Japan's Sony Corporation is a prime example of a multinational enterprise. With this in mind, which of the following would most accurately characterize Sony's operations? a) It follows a strategy of market globalization. b) It has operations or subsidiaries in many different countries. c) It places most of its emphasis on profits generated in foreign countries. d) It would not expect its foreign operations to share the same goals as the parent firm. e) It does not concern itself with differences in markets around the world.

It has operations or subsidiaries in many different countries.

Which of the following is true about NAFTA? a) It remains politically controversial. b) It will increase the total output of goods and services to foreign markets. c) It will decrease the total number of jobs in the United States. d) It eliminated all tariffs on goods traded between the United States, Canada, and Mexico. e) It will reduce the number of illegal aliens in the United States.

It remains politically controversial.

Which of the following countries has made the greatest inroads into other world markets? a) Indonesia b) Philippines c) Malaysia d) Japan e) China

Japan

One of the effects of NAFTA is the simplification of country-of-origin rules. This will likely hinder the international trade activities of a) Canada. b) Japan. c) Brazil. d) Cuba. e) Panama.

Japan.

Timex, a U.S. based watchmaker -- recently entered into a partnership agreement with the Australian government to make watches. What type of partnership agreement does this situation most likely represent? a) Trading company b) Licensing arrangement c) Strategic alliance d) Joint venture e) Direct ownership arrangement

Joint venture

Questor Corporation owns the Spalding brand name but does not produce a single golf club or tennis ball. This arrangement is an example of what type of involvement level for international marketing? a) Exporting b) Trading c) Joint venture d) Strategic alliance e) Licensing

Licensing

What level of commitment in international marketing may be most attractive when the political and economic stability of a foreign country is questionable? a) Joint ventures b) Direct ownership c) Exporting d) Limited exporting e) Licensing

Licensing

How does using an exporting intermediary limit the risk involved with global marketing? a) Most exporting intermediaries assume all financial risks on behalf of their clients. b) Exporting intermediaries are not subject to the same laws as companies, and therefore limit the legal risk involved. c) Using an exporting intermediary restricts a company to being involved with joint ventures and not direct ownership. d) Exporting intermediaries guarantee that the products a company is selling will be a good fit for the foreign markets they are entering. e) This approach involves limited risk because the company has no direct investment in the foreign country.

This approach involves limited risk because the company has no direct investment in the foreign country.

A business partnership between a domestic firm and a foreign firm is known as a) a joint venture. b) an international partnership. c) a multinational enterprise. d) licensing. e) exporting.

a joint venture.

An alliance between Honda and Ford would most likely be classified as a) a strategic alliance. b) a joint venture. c) direct ownership. d) a multinational enterprise. e) contract manufacturing.

a strategic alliance.

Miller's Home Furnishings uses marketing strategies aimed at markets within the United States, its home country. Miller's engages in a) domestic marketing. b) localized marketing. c) globalized marketing. d) limited exporting. e) international marketing.

domestic marketing.

If Hyundai, a Korean automobile manufacturing firm, started selling its cars at unfairly low prices to Germany, Hyundai would be engaging in a) quota-enforcing. b) embargoing. c) shoveling. d) dumping. e) dipping.

dumping.

Differences in standards of living, credit, buying power, and income distribution are all examples of _____ forces that must be considered in international marketing efforts. a) economic b) cultural c) ethical d) technological e) legal

economic

The United States' prohibition against importing cigars from Cuba is an example of a(n) a) health control. b) quota. c) embargo. d) exchange control. e) import control.

embargo.

The environmental forces that affect foreign markets may differ dramatically from those affecting domestic markets. This makes a careful _______ a critical part of a successful international marketing strategy. a) background check b) regulatory analysis c) social audit d) environmental analysis e) marketing statement analysis

environmental analysis

Many companies choose to standardize their _____ across national boundaries to maintain a consistent and well-integrated corporate culture. a) technology b) ethical behavior c) language d) dress code e) products

ethical behavior

The exchange rates of several European countries are linked together to a common currency, the a) lira. b) euro. c) dollar. d) peso. e) ropea.

euro.

In many countries, Wendy's allows foreign businesspeople to use its name, logo, methods of operation, advertising, and products. In exchange, Wendy's receives a financial commitment and an agreement to conduct business in accordance with its standard of operations. Wendy's is engaging in a) contract manufacturing. b) licensing. c) franchising. d) exporting. e) direct investment.

franchising.

When asked where Laser Tools, Inc., markets its products, company president and founder Roger Helms says that "the world is just one big market." He feels anyone not taking this stance is systematically passing up profitable business. Helms's international marketing strategy is best described as a) customization of marketing. b) globalization of marketing. c) limited exporting. d) full-scale international marketing. e) export agenting.

globalization of marketing.

Organizations that employ standardized products, promotion campaigns, and prices for all markets are practicing what is known as a) customization. b) internationalization. c) globalization. d) regionalization. e) nationalization.

globalization.

Standardizing many Nike and Adidas shoe models worldwide is an example of a) globalization. b) customization. c) nationalization. d) culturalization. e) internationalization.

globalization.

The Mont Blanc Company plans to export expensive consumer gift items to Germany. The best overall economic measure of market potential would be Germany's a) gross domestic product. b) gross domestic product per capita. c) gross national product. d) balance of trade. e) unemployment rate.

gross domestic product per capita.

When products are introduced into one nation from another, acceptance is far more likely a) if prices are set very low. b) when bribes are paid to local officials to aid distribution. c) if there are similarities between the two cultures. d) if packaging is adjusted to match local preferences. e) when retailers are given incentives to push the products.

if there are similarities between the two cultures.

If Tasmania levied a duty on all goods purchased from the United States and other countries outside its borders that were brought into Tasmania, its businesses and citizens would be paying a(n) a) embargo. b) import tariff. c) travelers' tax. d) export tax. e) foreign duty.

import tariff.

The purchase of products from a foreign source is called a) exporting. b) dumping. c) importing. d) licensing. e) venturing.

importing.

When the American company Exxon purchases crude oil from Saudi Arabia, it is engaging in a) licensing. b) importing. c) free trade. d) exporting. e) dumping.

importing.

If a U.S. bicycle tire manufacturer has to form a partnership with the government of Indonesia in order to gain access to the country's rubber, a _____ has been formed. a) multinational enterprise b) contract manufacturing arrangement c) strategic alliance d) franchise e) joint venture

joint venture

If Caterpillar wished to reach the market in Malaysia but was leery of a direct investment in the country, it might provide a Malaysian operation with the knowledge to produce and market its products in exchange for a commission. This type of arrangement is called a) licensing. b) exporting. c) a strategic alliance. d) a joint venture. e) contract manufacturing.

licensing.

When a firm's products sell in foreign countries with little or no effort to obtain foreign sales, the firm is engaging in a) international marketing. b) global marketing. c) limited exporting. d) product licensing. e) unplanned exporting.

limited exporting.

Nestlé Food Company is a Swiss-based company that operates several divisions in the United States and other countries. This classifies Nestlé as a(n) a) strategic alliance. b) national marketer. c) international proprietorship. d) multinational enterprise. e) limited exporter.

multinational enterprise.

Southern Tier Industries has operations in more than 30 foreign countries. The headquarters in Atlanta controls the entire organization while offering subsidiaries the freedom necessary to achieve success in local markets. Southern Tier Industries is an example of a(n) a) strategic alliance. b) joint venture. c) export-driven corporation. d) multinational enterprise. e) trading company.

multinational enterprise.

Firms that have operations or subsidiaries located in many countries are referred to as a) multinational enterprises. b) strategic alliances. c) joint ventures. d) international marketers. e) export alliances.

multinational enterprises.

In considering the viability of potential international markets for Pepsi products, PepsiCo is advised to take into account __________, which provides insight into market potential. a) per capita gross domestic product b) gross domestic product c) the quantity of exports d) the quantity of imports e) total consumer income

per capita gross domestic product

The unification of Europe through the European Union (EU) a) produced the largest single market in the world. b) calls for greater customization of products and attention to regulations and restrictions of European countries. c) means that members of the EU have become more heterogeneous in their needs and wants. d) required the countries to be segmented into many different markets. e) permits virtually free trade among the member nations of the EU.

permits virtually free trade among the member nations of the EU.

Special interest groups and regulatory bodies are ______ forces that must be taken into account in international marketing. a) socioeconomic b) technological c) economic d) social and ethical e) political and legal

political and legal

Maquiladoras are a) exchange controls from central banks in Latin American countries. b) production facilities in north-central Mexican states. c) import-export agents of the Mexican government. d) global marketing programs established in Latin American countries. e) freight forwarders from Mexico.

production facilities in north-central Mexican states.

The term dumping refers to the sale of a) products sold in foreign markets that cannot be sold in the United States. b) products sold in foreign markets at prices above those charged in the United States. c) all discontinued U.S. products in foreign countries. d) products sold in foreign countries at unfairly low prices. e) products sold in foreign markets that cannot pass safety standards in the United States.

products sold in foreign countries at unfairly low prices.

Marketers of computer software, music CDs, and books are particularly affected by cultural differences in a) socioeconomic status of citizens. b) advances in technology. c) differences in cross-cultural exchange behavior. d) ethical codes of conduct for businesses. e) standards regarding intellectual property.

standards regarding intellectual property.

Nuhitzu believes it has the technological expertise to produce communication systems that will be leaders around the globe. Boston Electronics is widely regarded as having excellent management systems and superior marketing programs. To utilize these strengths, the two firms might form a(n) ___________ to work together on a worldwide basis. a) licensing agreement b) export trading company c) joint agreement d) strategic alliance e) multinational enterprise

strategic alliance

Another name for the European Union is a) the Common Market. b) the European Market. c) the Euro. d) NAFTA. e) AECO.

the Common Market.

The country with the highest GDP is a) Japan. b) the United Kingdom. c) Brazil. d) the United States. e) China.

the United States.

Franchising offers all the following benefits for franchisers except a) franchise agreements require a certain standard of behavior from franchisees, which helps protect the franchise name. b) franchisers can retain control of their name while increasing global penetration of their products. c) the franchisee's revenue stream is fairly consistent because franchisers pay fixed fees and royalties. d) the franchiser's revenue stream is fairly consistent because franchisees pay fixed fees and royalties. e) franchisers do not have to put up a large capital investment.

the franchisee's revenue stream is fairly consistent because franchisers pay fixed fees and royalties.

The unconscious reference to one's own cultural values, experiences, and knowledge when encountering new and different cultures is known as a) the "when-in-Rome" approach. b) the Fraedrich Principle. c) cultural relativism. d) the self-reference principle. e) the self-reference criterion.

the self-reference criterion.

A company not involved in manufacturing that brings together buyers and sellers in different countries is usually referred to as a a) franchise. b) contract manufacturer. c) strategic intermediary. d) trading company. e) joint venture.

trading company.

A large farming cooperative that focuses on the production of fruits and vegetables uses a business that sells the farmers' products in foreign countries and also provides consulting, insurance, legal assistance, and warehousing to the cooperative. This business would most likely be called a(n) a) trading company. b) export specialist. c) contract wholesaler. d) licensor. e) strategic partner.

trading company.

The Grummond Group buys computer peripherals in industrialized countries and sells them to customers in developing countries. Grummond is most likely classified as a(n) a) trading company. b) strategic alliance. c) joint venture. d) licensee. e) exporter.

trading company.