Marketing Principles Ch. 9 Test 2
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
strategic alliance
special interest groups and regulatory bodies are _________________ forces that must be taken into account in international marketing
political and legal
Swiss-based Nestle has taken a global approach to marketing its chocolate products, which of the following is most easily standardized
product
the term dumping refers to the sale of
product sold in foreign countries at unfairly low prices
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)
quota
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)
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)
quota
select the truest statement
refusing to give payoffs and bribes in some foreign countries may put a marketer at a competitive disadvantage
marketers of computer software, music CDs and books are particularly affected by cultural differences in
standards regarding intellectual property
which of the following describes a company hiring a foreign firm to product a designated volume of its product to specification
contract manufacturing
_______________ can force businesspeople to buy and sell foreign products through a central agency, such as a central bank
exchange controls
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% of their sales outside the domestic home market
"born globals"
approximately ____________ of the world's purchasing power is outside of the united states
2/3
KFC opened its first franchise restaurant outside of North America in England in 1964. now, over a billion KFC chicken dinners are sold annually at more than 80 countries and territories around the world. KFC has established its own processing plants in these countries to ensure the quality of its chickens and other food items. in the US the menu at KFC is usually the same in all restaurants, with only a very few additional items available in different regions. However, when KFC first franchised into Asian countries, it added many unusual local delicacies to the menu-items such as friend octopus and squid. additionally, the franchised stores in Asian countries display cooked food in "plates" near windows at the front of the store. this is a tradition for many restaurants in these countries- to offer the customer passing by a preliminary view of their product. -which of the following alliances will KFC most likely utilize to guide its business transactions in Japan and China
APEC
which of the following trade alliances differs from others in its commitment to facilitating business and its practices of allowing the private sector to participate in a wide range of activities
APEC
many marketers claim that ____________ will become the world's largest market
China
which of the following centralizes all of the responsibility for international operations
International division structures
one of the effects of NAFTA is the simplification of country-of-origin rules. this will likely hinder the international trade activities of
Japan
which of the following countries has made the greatest inroads into other world markets
Japan
the trade alliance that includes Brazil, Argentina, Chile, and other countries is known as
MERCOSUR
which of the following alliances/agreements is the United States not part of
MERCOSUR
the agreement between the United States, Canada, and Mexico that merges these three countries into one marketplace is called
NAFTA
Wal-Mart is currently expanding its stores in Canada and Mexico. this expansion is being facilitated by the
NAFTA (north American free trade agreement)
the Common Market of the Southern Cone (MERCOSUR) includes countries from
South America
at the heart of the _______________ are agreements that provide legal ground rules for international commerce and trade policy
WTO
if a nearly formed country wanted to increase its international trade and reduce worldwide tariffs, it would most likely try to become a part of
WTO
in relation to international marketing, which of the following best describes direct ownership
a company owns subsidiaries or facilities in foreign countries
a business partnership between a domestic firm and a foreign firm is known as
a joint venture
an alliance between Honda and Ford would most likely be classified as
a strategic alliance
what is the primary distinction between a joint venture and a strategic alliance in international marketing
a strategic alliance is formed by companies who have traditionally been rivals, which is not the case with a joint venture
KFC opened its first franchise restaurant outside of North America in England in 1964. now, over a billion KFC chicken dinners are sold annually at more than 80 countries and territories around the world. KFC has established its own processing plants in these countries to ensure the quality of its chickens and other food items. in the US the menu at KFC is usually the same in all restaurants, with only a very few additional items available in different regions. However, when KFC first franchised into Asian countries, it added many unusual local delicacies to the menu-items such as friend octopus and squid. additionally, the franchised stores in Asian countries display cooked food in "plates" near windows at the front of the store. this is a tradition for many restaurants in these countries- to offer the customer passing by a preliminary view of their product. -the practice of offering fried octopus and squid at Asian KFC's is best described as
a strategy of some customization
globalization of marketing involves
developing a set of marketing strategies for the entire world or major regions of the world
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
advertising
the gross domestic product is
an overall measure of a nation's economic standing
the foreign Corrupt Practices Act of 1977 makes it illegal for U.S. firms to
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
balance of trade
the role of export agents is to
bring buyers and sellers from different countries together and collect a commission for arranging sales
which of the following is NOT true of NAFTA
business licensing requirements have been increased
by 2009, NAFTA will create a totally free trade area between the United States
canada, and Mexico
Harley-Davidson Motors manufacturers all of its motorcycles in the U.S at one of four sites. with a large number of its bikes sold in markets all around the world, it still retains the manufacturing close to the headquarters for several reasons, one being that its management wants to keep close watch on the quality of its product. However, for all the accessories, apparel, and other riding gear, Harley-Davidson contracts out to other manufacturers to produce the same items with the Harley name and logo. some of these items, particularly the apparel are made in China. lately, some members of the Harley Owner Group (HOG) have been complaining to the company about this practice, citing that "everything Harley should be made in America" -Harley-Davidson's practices of having manufacturers in China produce apparel items with the Harley logo is an example of
contract manufacturing
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
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
cultural
Johnston Chemicals' president is very excited about the possibility of the firms 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
cultural factors
Harley-Davidson Motors manufacturers all of its motorcycles in the U.S at one of four sites. with a large number of its bikes sold in markets all around the world, it still retains the manufacturing close to the headquarters for several reasons, one being that its management wants to keep close watch on the quality of its product. However, for all the accessories, apparel, and other riding gear, Harley-Davidson contracts out to other manufacturers to produce the same items with the Harley name and logo. some of these items, particularly the apparel are made in China. lately, some members of the Harley Owner Group (HOG) have been complaining to the company about this practice, citing that "everything Harley should be made in America" -one of Harley-Davidson's largest international markets is in Japan, where American brands are highly sought after. this is an example of _________________ impacting the market
cultural forces
KFC opened its first franchise restaurant outside of North America in England in 1964. now, over a billion KFC chicken dinners are sold annually at more than 80 countries and territories around the world. KFC has established its own processing plants in these countries to ensure the quality of its chickens and other food items. in the US the menu at KFC is usually the same in all restaurants, with only a very few additional items available in different regions. However, when KFC first franchised into Asian countries, it added many unusual local delicacies to the menu-items such as friend octopus and squid. additionally, the franchised stores in Asian countries display cooked food in "plates" near windows at the front of the store. this is a tradition for many restaurants in these countries- to offer the customer passing by a preliminary view of their product. -suppose that KFC's parent company experienced difficulty in opening its restaurant in China unless KFC was willing to pay the government a "bribe." if KFC were to resort to paying this bribe in China saying that "its different doing business there"- this would be an example of
cultural relativism
______________ 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
cultural relativism
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
customization
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
direct ownership
KFC opened its first franchise restaurant outside of North America in England in 1964. now, over a billion KFC chicken dinners are sold annually at more than 80 countries and territories around the world. KFC has established its own processing plants in these countries to ensure the quality of its chickens and other food items. in the US the menu at KFC is usually the same in all restaurants, with only a very few additional items available in different regions. However, when KFC first franchised into Asian countries, it added many unusual local delicacies to the menu-items such as friend octopus and squid. additionally, the franchised stores in Asian countries display cooked food in "plates" near windows at the front of the store. this is a tradition for many restaurants in these countries- to offer the customer passing by a preliminary view of their product. -KFC's establishment of international production/processing facilities is an example of
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
direct ownership
Miller's Home Furnishings uses marketing strategies aimed at markets within the United States, its home country. Miller's engages in
domestic marketing
which of the following lists the levels of involvement in global marketing from the lowest to the highest
domestic marketing, limited exploring, international marketing, globalized marketing
Harley-Davidson Motors manufacturers all of its motorcycles in the U.S at one of four sites. with a large number of its bikes sold in markets all around the world, it still retains the manufacturing close to the headquarters for several reasons, one being that its management wants to keep close watch on the quality of its product. However, for all the accessories, apparel, and other riding gear, Harley-Davidson contracts out to other manufacturers to produce the same items with the Harley name and logo. some of these items, particularly the apparel are made in China. lately, some members of the Harley Owner Group (HOG) have been complaining to the company about this practice, citing that "everything Harley should be made in America" -if Harley-Davidson were to suddenly find its inventory building up in Japan, it might reduce inventory by selling the bikes at below cost prices. the practice is known as
dumping
if Hyundai, a Korean automobile manufacturing firm, started selling its cars at unfairly low prices to Germany, Hyundai would be engaging in
dumpling
differences in standards of living, credit, buying power, and income distribution are all examples of ____________ forces that must be considered in international marketing efforts
economic
the united states' prohibition against importing cigars from Cuba is an example of a (n)
embargo
the environmental forces that affect foreign markets may differ dramatically from those affecting domestic markets. this makes a careful ________________ a critical part of successful international marketing strategy
environmental analysis
many companies choose to standardize their _____________ across national boundaries to maintain a consistent and well-integrated corporate culture
ethical behavior
the exchange rates of several European countries are linked together to a common currency, the
euro
government restrictions on the amount of a particular country's currency that can be bought or sold are known as
exchange controls
______________ bring together buyers and sellers from different countries and collect a commission for arranging sales
export agents
exporting, licensing, and using trading companies are preferred modes of international market entry for firms with a (n) structure
export department
the extent of Raytheon's participation in global business is selling the batteries it manufacturers to companies in Spain. in this case, Raytheon is a (n)
exporter
Harley-Davidson Motors manufacturers all of its motorcycles in the U.S at one of four sites. with a large number of its bikes sold in markets all around the world, it still retains the manufacturing close to the headquarters for several reasons, one being that its management wants to keep close watch on the quality of its product. However, for all the accessories, apparel, and other riding gear, Harley-Davidson contracts out to other manufacturers to produce the same items with the Harley name and logo. some of these items, particularly the apparel are made in China. lately, some members of the Harley Owner Group (HOG) have been complaining to the company about this practice, citing that "everything Harley should be made in America" -at what level of involvement in international marketing is Harley Davidson with regards to its bikes?
exporting
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
exporting
a subsidiary in a foreign country generally operates under
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
franchising
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
franchising
organizations that employ standardized products, promotion campaigns, and prices for all markets are practicing what is known as
globalization
standardizing many Nike and Adidas shoe models worldwide is an example of
globalization
when asked where Laser tools Inc., markets its product, 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. Helm's international marketing strategy is best described as
globalization of marketing
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
globalization of markets
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
gross domestic product per capita
when products are introduced into one nation from another, acceptance is far more likely
if there are similarities between the two cultures
a duty levied by a nation on goods bought outside its borders and brought inside is called a (n)
import tariff
if Tasmania levied a duty on all goods purchased from the US and other countries outside its boarders that were brought into Tasmania, its businesses and citizens would be paying a (n)
import tariff
which of the following is often used to raise revenue for a country and/or to protect domestic products
import tariff
the purchase of products from a foreign source is called
importing
when the American company Exxon purchases crude oil from Saudi Arabia, it is engaging in
importing
what is the greatest advantage to an organization of having a subsidiary in a foreign nation
increase in cross-cultural approaches to management that allows subsidiaries to develop their own identity
before the 1990s, most firms entered international markets
incrementally and slowly
which of the following is most likely to engage in direct ownership activities internationally
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
it has operations or subsidiaries in may different countries
which of the following is TRUE about NAFTA
it remains politically controversial
Timex, a US 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
joint venture
if a US bicycle tire manufacturer has to forma a partnership with the government of Indonesia in order to gain access to the country's rubber, a ___________ has been formed
joint venture
the World Trade Organization accomplishes all of the following except
lending money to businesses interested in developing international markets
Questor Corporation owns that 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
licensing
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
licensing
what level of commitment in international marketing may be most attractive when the political and economic stability of a foreign country is questionable
licensing
when a firm's products sell in foreign countries with little or no effort to obtain foreign sales, the firm is engaging in
limited exploring
which of the following is used to help maintain a more favorable balance of trade by a country
limiting imports
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
media allocation
in many developing countries around the world technology is enabling opportunities to "leapfrog" existing technology. what does this mean
more advanced technology is reaching these countries even though they lack technological infrastructures
Nestle Food Company is a Swiss-based company that operates several divisions in the united states and other countries. this classifies Nestle as a (n)
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)
multinational enterprise
firms that have operations or subsidiaries located in many counties are referred to as
multinational enterprises
the contracting of noncore operations or jobs from internal production within a business to an external entity that specialized in that operation is known as
outsourcing
in considering the variability of potential international markets for Pepsi products, PepsiCo is advised to take into account __________________, which provides insight into market potential
per capita gross domestic product
the unification of Europe through the European Union (EU)
permits virtually free trade among the member nations of the EU
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
political and legal
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 the opportunity in India, what type of business structure would they likely use
strategic alliance
sometimes business partnerships are formed between traditional rivals competing for market share in the same product class. these partnerships are known as
strategic alliances
another name for the European Union is
the Common Market
the country with the highest GDP is
the United States
franchising offers all the following benefits for franchisers except
the franchisee's revenue stream is fairly consistent because franchisers pay fixed fees and royalties
which of the following would be a benefit to a franchiser, such as Jiffy Lube, in expanding into international marketing
the franchiser does not have to put up a large capital investment
the unconscious reference to one's own cultural values, experiences, and knowledge when encountering new and different cultures is known as
the self-reference criterion
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
the world trade organization
how does using an exporting intermediary limit the risk involved with global marketing
this approach involves limited risk because the company has no direct investment in the foreign country
a ____________ is an organization that links buyers and sellers in different countries but is not involved in manufacturing
trading company
a company not involved in manufacturing that brings together buyers and sellers in different countries is usually referred to as a
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)
trading company
