MKTG 4400 Ch. 9 Multiple Choice
surplus commodity product
A market in which the only marketing function performed is exchange is most like to be classified under the _____ stage.
less-developed countries
According to the United Nations' stages of economic development for classifying countries with respect to levels of industrialization, _____ consist of industrially developing countries just entering world trade with relatively low per capita income.
least-developed countries
According to the United Nations' stages of economic development for classifying countries with respect to levels of industrialization, a country that is industrially underdeveloped, agrarian, has subsistence society with rural populations and extremely low per capita income levels falls under the category of _____.
More-developed countries
According to the United Nations' stages of economic development for classifying countries with respect to levels of industrialization, which category does an industrialized country with high per capita income fall under?
commercial-transition
According to the evolution of the marketing process, when the only marketing functions performed are demand creation, physical distribution, and market information analysis, the marketing process is in the _____ substage.
big emerging market
Alexia is geographically large and represents a sizable market for a wide range of products. It has a potential for significant growth. It is considered as the regional economic driver. Based on this information, Alexia can be classified as a(n) _____.
they import less than smaller markets
All of the following are traits of big emerging markets (BEMs) EXCEPT:
Germany is a member of Mercosur
All of the following statements are true regarding Mercosur EXCEPT that:
CARICOM
Bahamas is a member of _____.
a common currency for all members
CARICOM established the CSME (CARICOM Single Market and Economy) with the goal of:
more-developed countries
Canada is classified under the category of _____.
newly industrialized
Chile, Brazil, Mexico, South Korea, Singapore, and Taiwan are _____ countries.
China
During the early growth of many countries, the first large open market was _____.
have rapidly changing consumption patterns
Dynamic economies differ from static economies in that dynamic economies:
distribution
Economic planners are most likely to be least concerned with the problems related to _____.
production
Economic planners are often more _____ oriented than marketing oriented.
coexistence of three distinct kinds of markets in each country
Estimating market potential in less-developed countries involves additional challenges, but most of the difficulty arises from the _____.
moving goods from Mexico to the United States is cheaper and faster than moving them from Sri Lanka.
Given the fact that NAFTA is now effective among the U.S., Mexico and Canada, an American company which has its production plant in Sri Lanka will be willing to relocate its production plant to Mexico mostly because:
Mass production
Identify the substage in the evolution of the marketing process, when the only marketing functions performed are demand creation and physical distribution.
big emerging market
If a market is characterized as being geographically large, has significant population, is a regional economic driver, and has undertaken significant programs of economic reform, the market is classified as a(n) _____.
Canada
In which of the following countries is the literacy rate 100 percent?
big emerging markets
Markets that are geographically large, have strong growth rates, are regional economic drivers and represent sizable markets for a wide range of products are known as _____.
food
More household money goes for _____ in emerging markets than in developed markets.
obtained significant amount of loans from World Bank
Most newly industrialized countries (NICs) have moved away from restrictive trade practices and instituted significant free market reforms. As a result these countries have:
attracted both trade and foreign direct investment
Most newly industrialized countries (NICs) have moved away from restrictive trade practices and instituted significant free market reforms. As a result these countries have:
is a comprehensive trade agreement that addresses and improves all aspects of doing business within North America
NAFTA differs from Mercosur in that NAFTA:
have moved away from restrictive trade practices and instituted significant free market reforms
Newly industrialized countries (NICs) differ from less-developed countries in that NICs:
the differential treatment of member countries according to their level of economic development
One of the most important aspects of LAIA that differs from LAFTA, its predecessor, is:
infrastructure
Paved roads, railroads, seaports, communication networks, and financial networks are illustrations of _____.
the release of capital to invest in strategic areas
Privatization of state-owned enterprises results in _____.
no longer seems relevant in the rapidly industrializing world
The United Nations' classification of stages of economic development has been criticized because it:
economic development
The level of market development roughly parallels the stages of _____.
to establish a Latin American common market
The long-term goal of the LAIA (Latin American Integration Association), better known by its Spanish acronym, ALADI, is:
mass production
The marketing process in the U.S between 1885 to 1914 mainly focused on _____.
Caribbean Community and Common Market
The success of the Caribbean Free Trade Association led to the creation of the _____.
Canada, Mexico, and the United States
The three members of the North American Free Trade Agreement (NAFTA) are:
consists of population that moves from the country to the large cities
The transitional sector differs from the modern urban sector in that the transitional sector:
Europe after World War II
What is happening in BEMs today is analogous to what happened in:
release of capital to invest elsewhere
When countries sell off state-owned enterprises, it usually results in a(n):
exchange
When the marketing process is characterized by mass distribution, all of the following marketing functions are performed EXCEPT _____.
Mexico
Which country announced that it would seek free trade with the United States immediately after the ratification of the United States-Canada Free Trade Area (CFTA)?
DR-CAFTA
Which is the comprehensive free trade agreement among Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, Nicaragua, and the United States that includes a wide array of tariff reductions aimed at increasing trade and employment?
Rules of origin
Which key provision of NAFTA restricts Japan from assembling autos in Mexico and avoiding U.S. or Canadian tariffs and quotas, unless the auto had a specific percentage of Mexican (i.e., North American) content?
Agricultural and agro-industrial products
Which of the following accounts for the lion's share of Mercosur exports to Europe?
China
Which of the following countries is NOT a member of the Caribbean Community and Common Market (CARICOM)?
Cuba
Which of the following countries is a member of the Latin American Integration Association (LAIA, aka ALADI)?
Costa Rica
Which of the following countries is a member of the free trade agreement DR-CAFTA?
The United States
Which of the following countries is a part of the free trade area known as CFTA?
Mexico
Which of the following countries is considered as a BEM (big emerging market)?
Argentina
Which of the following countries was involved in the formation of the free trade group Mercosur?
Rapid increase in population
Which of the following is NOT a factor that has contributed to the rapid economic growth of NICs (newly industrialized countries)?
The expansion of military interventions around the world
Which of the following is NOT one of the factors changing the way countries trade and prosper in the twenty-first century?
Germany
Which of the following is a fully industrialized country?
Inflated public-sector bureaucracies
Which of the following is a result of state ownership?
Extent of social overhead capital
Which of the following is an indicator of economic development?
Economic level
Which of the following is considered as the single most important environmental element of a country to which the foreign marketer must adjust the marketing task?
NAFTA
Which of the following is the largest common-market agreement in the Americas?
Mercosur
Which of the following is the second-largest common-market agreement in the Americas?
It often leads to modernization
Which of the following is true about privatization of state-owned enterprises?
State ownership has resulted in complicated and unpredictable regulatory environments.
Which of the following is true about state-owned enterprises (SOEs)?
Foreign investors are seen as vital partners in economic development
Which of the following is true about the present state of foreign businesses in most developing countries?
It provided only for the elimination of tariffs and other trade barriers between the United States and Canada.
Which of the following is true of the CFTA?
These countries have high per capita incomes
Which of the following statements is true regarding MDCs (more-developed countries)?
The Internet enables smaller firms in emerging economies to sell into a global market
Which of the following statements is true regarding the Internet?
Mass distribution
Which of the following substages best characterizes the United States today with respect to the evolution of the marketing process?
Treaty of Asuncion
Which of the following treaties provided the legal basis for Mercosur?
Self-sufficient
With respect to the evolution of the marketing process, which of the following would be considered to be the most fundamental substage (first substage)?
The United Nations
____ classifies a country's stage of economic development on the basis of its level of industrialization into three categories and the three categories are MIDCs, LDCs, and LLDCs.
Mercosur
_____ is a free trade group formed by Argentina, Brazil, Paraguay, and Uruguay.
Marketing
_____ is an economy's arbitrator between productive capacity and consumer demand.
Economic development
_____ refers to an increase in national production that is reflected by an increase in the average per capita gross domestic product (GDP) or gross national income (GNI).
NAFTA
_____ required the United States, Canada and Mexico to remove all tariffs and trade barriers over 15 years, and beginning in 2008, all tariff barriers were officially dropped.
