Marketing ch 9

BRIC. ROW

Brazil, russia, india, china Rest of world

Many marketers claim that ____ will become the world's largest market. a. Indonesia b. Philippines c. Malaysia d. Japan e. China

e

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

e

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

d

______ bring together buyers and sellers from different countries and collect a commission for arranging sales. a. Export agents b. Licensors c. Trading companies d. Import specialists e. Trade brokers

a

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.

b

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

a

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.

a

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

a

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

a

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

a

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

e

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.

e

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.

e

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

e

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.

a

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.

b

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.

b

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

b

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.

b

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.

c

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

c

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

c

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.

c

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.

d

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.

d

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.

d

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

d

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

d

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.

d

____ 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

d

A duty levied by a nation on goods bought outside its borders and brought inside is called a (n) a. import duty. b. embargo. c. quota. d. export tariff. e. import tariff.

e

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.

e

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.

e

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.

e

___________ 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

e

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

e -- DLIG

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.

a

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

b

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.

b

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.

b

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.

d

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

d

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.

d

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

e

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

a

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.

a

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

a

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.

a

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.

c

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.

a

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.

a

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

a

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.

b

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

b

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.

b

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

b

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.

b

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.

b--IS

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.

c

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.

c

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.

c

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.

c

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.

c

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.

d

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

d

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

d

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

d

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

e

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

e

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.

e

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

e