Global Marketing 1-3

The international transaction of a nation are recorded by a system of accounts. This system of accounts is known as the _____ ____ ______.

Balance of Payments

True or False: Protests against global organizations, such as the WTO and IMF, stem from basic complaint that globalization hinders international trade efforts.

FALSE

. _______ marketing is the type of marketing that involves pricing and promoting the goods and services of a company to customers in more than one country.

INTERNATIONAL

The limit that a government places on imports in terms of number of units or dollar amounts is called a ____________

QUOTA

True or False: A voluntary export restraint is called "voluntary" because limits on the volume of exported are set by the exporting country.

TRUE

True/False? The second source of most of the problems that foreign markets have with their marketing programs is the marketer's unfamiliarity with their environment.

TRUE

Which of the following enabled U.S. companies to expand exports and investment worldwide following World War 11? a. A rise in standards of living b. Growing consumer and industrial markets c. Suppression of capitalism and infusion of communism d. Establishment of colonial power

a. A rise in standards of living b. Growing consumer and industrial markets

____ refers to the efforts that international marketers make to foresee how foreign and domestic uncontrollable factors affect a marketing mis and then implement appropriate changes to the mix. a. Adaptation b. Nationalization c. Confiscation d. Acculturation

a. Adaptation

The country of Cileria refuses to sell goods to its neighboring country Isotola after a series of armed border clashes with Isotola troops. In this scenario Cileria's decision is an example of a. An embargo b. Output restriction c. Filtering d. A boycott

a. An embargo

A political dispute arises between the governments of two trading countries, Ataya and Hembark. Consequently, the government of Ataya decides to restrict the import of goods from Hembark and sever all trading relations with it. In this scenario, Ataya's decision is an example of a government a. Boycott b. Output restriction c. Outsourcing d. Strike

a. Boycott

A feature of uncontrollable elements of marketing decisions is that they _____ a. Can eventually be changed if necessary b. Represent the levels of uncertainty created by foreign environments c. Can be controlled only in the short run d. Cannot be influenced by a marketer

a. Can eventually be changed if necessary

Which of the following statements are true of the global marketing stage of international marketing involvement? (Check all that apply) a. Companies in this stage define market segments based on income levels and usage patterns b. Companies in this stage are involved in infrequent foreign marketing c. Companies in this stage do not actively cultivate customers outside national boundaries d. Companies adopt this stage once they cross the threshold at which more than half their sales revenue comes from abroad

a. Companies in this stage define market segments based on income levels and usage patterns d. Companies adopt this stage once they cross the threshold at which more than half their sales revenue comes from abroad

Which of the following are features of international trade in the 21st century?(select all) a. Countries are more interdependent economically b. Countries are more self-sufficient than ever before c. There are greater opportunities for international trade d.The potential for increased demand is low

a. Countries are more interdependent economically c. There are greater opportunities for international trade

Which of the following led to the creation of new global marketing opportunities? a. Countries that were previously underdeveloped and economies that were war-torn grew rapidly b. Economic cooperation and assistance developed at a large scale c. Major worldwide recessions catapulted the world's economies to new heights d. Conflicts between the socialist Marxist approach and the democratic capitalist approach began

a. Countries that were previously underdeveloped and economies that were war-torn grew rapidly b. Economic cooperation and assistance developed at a large scale

International marketing strives to ______ a. Create plans for strategically competing in global markets b. Avoid the free-market system used in most developing countries c. Shift the scope of business activities from a global to national perspective d. Create specialized business portfolios that are specific to a particular industry

a. Create plans for strategically competing in global markets

Which of the following is true about foreign environment uncontrollable(s)? a. Determining how to adjust to foreign environment uncontrollable's is difficult because of unfamiliar cultural, political, and economic factors b. Foreign environment uncontrollables include product, place, price, distribution, and research c. They can be altered in the long run and, usually, in the short run to adjust to changing market conditions, consumer tases, or corporate objectives d. They include home-country elements that can have a direct effect on the success of a foreign venture

a. Determining how to adjust to foreign environment uncontrollable's is difficult because of unfamiliar cultural, political, and economic factors

Which of the following are unintended consequences of globalization? a. Diminished national sovereignty b. Increased oil prices c. The loss of cultures d. Exploitation of workers e. Diminished world trade

a. Diminished national sovereignty b. Increased oil prices c. The loss of cultures d. Exploitation of workers

The infrequent foreign marketing stage... a. Does not call for a reorganization of company organization or its product lines b. Produces large financial returns from short-term international expansions c. Fits the marketing model of the majority of today's companies d. Starts when the company begins to actively cultivate customers outside national boundaries

a. Does not call for a reorganization of company organization or its product lines

What is the fundamental difference between domestic marketing and international marketing? a. Domestic marketing activities take place in only one country b. Domestic marketing has significantly higher returns on equity and assets c. Domestic marketing involves reduced manufacturing employment d. Growth rates are difficult to sustain in international marketing

a. Domestic marketing activities take place in only one country

The belief that the way people in your own company or culture do things is the best way of doing them is known as ______. a. Ethnocentrism b. Cognitive dissonance c. Group think d. Doublethink

a. Ethnocentrism

To impose the entry of unwanted goods into its markets, countries commonly impose which of the following types of barriers? a. Exchange b. Cultural c. Legal d. Physiological

a. Exchange c. Legal d. Physiological

In the context of infrequent foreign marketing, which of the following is a feature of sales to foreign marketers? a. Foreign sales can be made when surplus production makes goods available b. Foreign sales activity increases to accommodate domestic demands c. Foreign sales are made with the intention of maintaining continuous market representation d. Foreign sales from infrequent foreign marketing produce high financial returns

a. Foreign sales can be made when surplus production makes goods available

Which of the following are types of exchange-control restrictions? a. Government approval for foreign exchange b. Embargoes c. Formal or informal public boycotts d. Blocking currency

a. Government approval for foreign exchange d. Blocking currency

International patterns were disrupted in the last half of the twentieth century because of the a. Ideological split between countries with a socialist Marxist approach and those with a democratic capitalist approach b. Emergencies of the World Trade Organization to regulate free trade c. Decreasing demand for goods and services d. Worldwide economic depression that occurred between two world wars

a. Ideological split between countries with a socialist Marxist approach and those with a democratic capitalist approach

Which of the following arguments in favor of protectionism do economist support? a. Industrializing underdeveloped nations b. Protecting infant industries c. Protecting foreign markets d. Strengthening national defense

a. Industrializing underdeveloped nations b. Protecting infant industries d. Strengthening national defense

Which of the following are accurate statements about a nations balance of payments statement? a. It records all financial transactions between residents and the rest of the world b. It provides a record of the nation's political status c. It determines whether the nation is in good or poor financial condition d.It maintains records through a double entry bookkeeping system

a. It records all financial transactions between residents and the rest of the world d.It maintains records through a double entry bookkeeping system

Which of the following elements in international marketing are uncontrollable elements of the domestic environment? a. Political and legal forces b. Competition c. Economic climate d. Price and promotion

a. Political and legal forces b. Competition c. Economic climate

The government of a nation imposes a tax on goods that enter its borders. This tax is known as a(n) a. Tariff b. Loose rate c. Incentive d. Physic cost

a. Tariff

Which of the following are correct statements about tariffs? a. Tariffs tend to discourage the importations of goods. b. Tariffs are imposed on goods exiting a country's border. c. Tariffs help generate government revenue. d. Tariffs are based on quantity or value of goods.

a. Tariffs tend to discourage the importations of goods. c. Tariffs help generate government revenue. d. Tariffs are based on quantity or value of goods.

Which of the following are features of companies engaged in international marketing? a. They try to sell their products all over the world b. They plan the production of products for various countries c. They lack permanent productive capacity for the production of goods and services for foreign markets d. They cease foreign sales activity when domestic demand increases

a. They try to sell their products all over the world b. They plan the production of products for various countries

Which of the following are the reasons that protectionists want government to impose restrictions on trade? a. To protect natural resources b. To protect foreign markets c. To discourage the accumulation of capital d. To maintain the standard of living e. To keep up employment and reduce unemployment

a. To protect natural resources d. To maintain the standard of living e. To keep up employment and reduce unemployment

Which of the following are objectives of the World Bank Group? a. To reduce poverty b. To improve standards of living c. To conserve national parks and forests d. To promote sustainable growth

a. To reduce poverty b. To improve standards of living d. To promote sustainable growth

The level of technology is an uncontrollable element that can often be misread owing to the _____. a. Vast differences that may exist between the developed and developing countries b. Use of local content and labor during the manufacturing process of foreign products c. Alien status of the foreign multinational d. Same understanding of preventive maintenance for machinery in other countries as in the United States

a. Vast differences that may exist between the developed and developing countries

Money constantly flows into and out of a country in which of the following ways? a. When a country makes foreign investments b. When countries exchange monetary gifts c. When a country exports and imports products and services d. When a country has no tourist industry e. When a Country receives cash receipts or makes cash payments

a. When a country makes foreign investments b. When countries exchange monetary gifts c. When a country exports and imports products and services e. When a Country receives cash receipts or makes cash payments

Laws related to antidumping policies are permitted under the rules of a. World Trade Organization b. Office of Federal Contract Compliance c. Equal Employment Opportunity Commission d. American Federation of Labor-Congress of Industrial Organizations

a. World Trade Organization

How many accounts are included in a balance of payments statement? a. 5 b. 3 c. 7 d. 1

b. 3

In the context of international marketing, a relatively new problem facing U.S. companies is ____ a. Increased manufacturing employment at home and abroad b. Competition from their global competitors in the U.S. c. The nationalization of foreign multinational companies d. The establishment of manufacturing plants in the united states by foreign companies

b. Competition from their global competitors in the U.S.

Which of the following are results of the trade barriers that governments set up? a. Budget requests are justified in detail b. Development of domestic industry is encouraged c. Existing industry is supported d. Foreign businesses are allowed to thrive

b. Development of domestic industry is encouraged c. Existing industry is supported

Which of the following is a factor that complicates the international markets task? a. Marketing principles and concepts are universally applicable to all aspects of marketing except international marketing b. Each country that a company does business in will have uncontrollable factors that differ from those of other countries c. International marketers need to deal with a single level of uncontrollable uncertainty instead of two levels of uncertainty d. International marketers need to mold the uncontrollable elements of the marketplace within the framework of the controllable element

b. Each country that a company does business in will have uncontrollable factors that differ from those of other countries

Companies treat both their home market and the rest of the world as one market during the ______ stage of international marketing involvement. a. No direct foreign marketing b. Global marketing c. Infrequent foreign marketing d.Regular foreign marketing

b. Global marketing

29. Which of the following can marketing provide? a. Information on supplier preferences b. Information on consumer preferences c. Information on what funds may be available d. Insight on what competitors is doing e. Judgement on the manufacturability of designs

b. Information on consumer preferences d. Insight on what competitors is doing

In the context of controlling imports, which of the following is a true statement about an import license? a. It increases the choice of goods available to consumers b. It can be used to restrict imports on a case-by-case basis c. It permits less flexibility than import quotas d. It regulates the quality of imported goods

b. It can be used to restrict imports on a case-by-case basis

Which of the following statements about the World Trade Organization are accurate? a. It is an agreement, just as GATT was. b. It encompasses the structure of GATT. c. It is an institution. d. It issues binding decisions on members.

b. It encompasses the structure of GATT. c. It is an institution. d. It issues binding decisions on members.

International marketing is more difficult than domestic marketing because international marketing _____. a. Deals only with the marketing elements of product, price, promotion, and re-search b. Must cope with a unique set of uncontrollable factors in each country in which does business c. Has nothing in common with domestic marketing d. Must implement marketing plans in an environment that doesn't change

b. Must cope with a unique set of uncontrollable factors in each country in which does business

A country resorts to protectionism in order to a. Impose cultural barriers within domestic markets b. Prevent foreign companies from intruding on domestic trade c. Temporarily restrict all domestic trade and investment d. Encourage the markets within the country to engage in pseudo participation

b. Prevent foreign companies from intruding on domestic trade

Countries use import licenses to a. Restrict manufactures' supply sources. b. Regulate the flow and amount of imported goods c. Increase the choices of goods available to consumers d. Justify budget requests for the Commerce Department

b. Regulate the flow and amount of imported goods

Which of the following are the chief obstacles to being successful in the international marketing? a. Liberal trade policies b. The self-reference criterion c. Domestic environment controllables d. Ethnocentrism

b. The self-reference criterion d. Ethnocentrism

Which of the following is a practice that international marketers should follow? a. They should implement the same marketing across all the cultures with similar heritage b. They should seek to understand the people and their culture in each country in which the marketers will implement a, marketing program c. They should adjust their marketing strategies so as to increase the imports and decrease the exports of their host country d. They should the use of local labor and content in any foreign products

b. They should seek to understand the people and their culture in each country in which the marketers will implement a, marketing program

When there is _____ among countries, financial transactions take place between businesses of consumers of the countries. a. Conflict b. Trade c. A physiological gap d. Cultural diversity

b. Trade

Which of the following statements Is true regarding the internationalization of U.S. business? a. Foreign companies that have familiar brands in the U.S. are being nationalized by the U.S. government b. U.S. companies are necessarily having to deal with foreign businesses, even within the U.S. c. Foreign companies that entered the U.S. market through exporting are not allowed to build manufacturing plants in the U.S. d. Companies with only domestic markets are sustaining their growth rates better than companies with foreign markets.

b. U.S. companies are necessarily having to deal with foreign businesses, even within the U.S.

30. Ethics is _____ a. Applied when an action needs to be analyzed for whether it is legal or not b. A set of standards applied in the workplace c. A standard of behavior that guides how one should act in various situations

c. A standard of behavior that guides how one should act in various situations

The complete restriction that a government places on buying or bringing in specific goods from another country is called a a. Quota b. Strike c. Boycott d. Tariff

c. Boycott

A U.S. based multinational has its operations in developing country. Owing to the election of a president with conservative trade policies in the host country, operations have been brought to a standstill. This scenario illustrates ____ a. Domestic environment uncontrollables b. Domestic environment controllables c. Foreign environment uncontrollables d. Foreign environment controllables

c. Foreign environment uncontrollables

Which of the following are accurate statements about a quota? a. It minimizes the risk of a trade war because it boosts international relations b. It limits certain types of imports but only a case-by-case basis c. It places an absolute limit on imported items d. It tends to raise prices

c. It places an absolute limit on imported items d. It tends to raise prices

Which of the following statements accurately describes domestic environment uncontrollables? a. They include price, product, promotion, channels of distribution, and research activities b. They encompass the difficulties created by the environment in host countries c. They can directly affect a foreign venture even though they are elements within a business's home country d.They are independent of the political and legal forces of a home country

c. They can directly affect a foreign venture even though they are elements within a business's home country

Which of the following statements are true about companies engaged in regular foreign marketing? a. They focus their primary production on satisfying foreign market needs b. They don't use foreign overseas intermediaries c. They may employ domestic overseas intermediaries d. They may have their own sales force in important foreign markets

c. They may employ domestic overseas intermediaries d. They may have their own sales force in important foreign markets

Voluntary export restraints (VERs) impose restrictions on the a. Price of imports b. Method of imports c. Volume of exports d. quality of exports

c. Volume of exports

International marketers _______. a. Ensure that their export, import, and manufacturing operations are never moved abroad b. Cannot control the marketing element of price, promotion, product, and distribution c. Focus on increasing the imports and decreasing the exports in a host country d. Base decisions and judgement about markets on a given perspective, and they need to be aware of what perspective is

d. Base decisions and judgement about markets on a given perspective, and they need to be aware of what perspective is

A country wants to maintain a record of its direct investment. The entry should be made in the ____ account? a. Reserves b. Dummy c. Current d. Capital

d. Capital

Which of the following is a best practice by a manager in international marketing? a. Avoiding the use of local content in the products of his or her company b. Using foreign labor instead of domestic labor form the host country in his or her workforce c. Applying a standard set of marketing principles and concepts to the environments of different countries d. Developing a marketing program that properly takes into account business climate uncertainties

d. Developing a marketing program that properly takes into account business climate uncertainties

A country's balance of payments statement serves which of the following purpose? a. Justifying in detail the country's strategic objectives b. Scrutinizing the country's future human resources needed c. Accurately determining the country's overall condition d. Evaluating the country's international economic position

d. Evaluating the country's international economic position

A U.S. based multinational set up a manufacturing plant in a foreign country. The international marketers assumed that the understanding of the concept of preventive maintenance for machinery was the same in the host country as in the United States .... a. Cultural forces b. Competitive forces c. Structure of distribution d. Level of technology

d. Level of technology

Which of the following statements is true about international marketing? a. Most businesses are shifting the scope of their activities from a global to a national perspective b. International businesses are ensuring that all manufacturing-related activities do not take place in host countries c. Companies that do not operate in the international arena are unaffected by the global market d. More and more companies have found that it has become a business necessity to participate in international markets

d. More and more companies have found that it has become a business necessity to participate in international markets

With increasing competition in world markets, there is growing tendency to adopt _____. a. Trade liberalization b. Free trade c. Anti-globalization d. Protectionism

d. Protectionism

An ever-expanding variety of goods and services are in demand by consumers all around the world. Given the importance of world trade, countries are inclined to a. Engage in more regional wins b. Allow free trade on all their products c. Promote consumer self-sufficiency for their citizens d.Attempt to control the trade for their own benefit

d.Attempt to control the trade for their own benefit