OSU Marketing 3250: Chapter 19

*To assess the impact of​ __________ on global​ markets, marketers would look to a​ country's norms,​ folkways, and taboos.* A. the economy B. culture C. tariff and quota restrictions D. free trade zones E. the​ political-legal environment

B. culture

*Which organization was designed to reassess trade​ barriers, establish new rules for international​ trade, impose international trade​ sanctions, and mediate global trade​ disputes?* A. The World Trade Organization​ (WTO) B. The North American Free Trade Agreement​ (NAFTA) C. The General Agreement on Tariffs and Trade​ (GATT) D. The Transatlantic Trade and Investment Partnership​ (TTIP) E. The European Union​ (EU)

A. The World Trade Organization​ (WTO)

*What are the three ways a company can organize its international operating​ units?* A. By​ product, geography, and sales B. By geographical​ organizations, world product​ groups, and international subsidiaries C. By​ cultural, economic, and​ political-legal factors D. By​ sales, profits, and market share E. By​ sales, products, and prices

B. By geographical​ organizations, world product​ groups, and international subsidiaries

*What are the two key links in a whole channel view of international​ distribution?* A. Channels between nations and finding home nation retailers in a foreign nation B. Channels between nations and channels within nations C. Channels within nations and consumer demand in those nations D. Channels between nations and supplier costs E. Selling to wholesalers in foreign nations and selling to retailers in foreign nations

B. Channels between nations and channels within nations

*In which form of international organization are country managers responsible for​ salespeople, sales​ branches, distributors, and licensees in their respective​ countries?* A. Export department B. Geographical organizations C. World product groups D. International subsidiaries E. Global organization

B. Geographical organizations

*What is the main disadvantage of direct​ investment?* A. The need to staff the facility with home nation employees B. The risks the firm faces C. Host nation resentment D. Lack of control over the investment E. Higher costs

B. The risks the firm faces

*Apple​ iPads, Gillette​ razors, and Black​ & Decker tools are all sold successfully in about the same form around the world. This is an example of which global​ strategy?* A. Product adaptation B. Communication adaptation C. Product invention D. Dual adaptation E. A straight product extension

E. A straight product extension

*Which of the following statements is true regarding pricing in global​ markets?* A. Technological forces have had little impact on global pricing. B. Companies typically set a uniform global price. C. For most​ companies, their foreign prices probably will be higher than their domestic prices for comparable products. D. Companies generally use a standard​ mark-up to set a global price. E. When selling to less affluent consumers in developing countries many companies sell the existing product at a higher price.

C. For most​ companies, their foreign prices probably will be higher than their domestic prices for comparable products.

*What are the two economic factors that reflect a​ country's attractiveness as a​ market?* A. Income distribution and tariffs B. Industrial structure and tariffs C. Industrial structure and income distribution D. Tariffs and quotas E. Income distribution and monetary regulations

C. Industrial structure and income distribution

*Which joint venturing method typically involves fees and royalty​ payments?* A. Direct investment B. Contract manufacturing C. Licensing D. Joint ownership E. Management contracting

C. Licensing

*Which type of industrial structure offers the fewest marketing​ opportunities?* A. Raw material exporting economies B. Emerging economies C. Subsistence economies D. Free trade zones E. Industrial economies

C. Subsistence economies

*A firm normally gets into international marketing by simply shipping out its goods. If its international sales​ expand, most companies then organize by​ __________.* A. joining an economic community B. creating international divisions C. establishing an export department D. selling in as many other nations as possible. E. becoming a global organization

C. establishing an export department

*One factor that makes management contracting an attractive entry strategy is that​ __________.* A. the company can set up its own operations B. the exported products are in demand in the foreign nation C. it yields immediate income D. it is risky E. it is almost always successful

C. it yields immediate income

*Nations that have too little hard currency to pay for their purchases from other countries will often use which method of international​ trade?* A. Free trade zones B. Cash transactions C. Credit D. Barter E. Tariffs

D. Barter

*Which market entry strategy has the greatest amount of​ commitment, risk,​ control, and profit​ potential?* A. Contract manufacturing B. Exporting C. Licensing D. Joint ownership E. Direct investment

E. Direct investment

*A​ country's attractiveness depends on the​ product, geographical​ factors, income and​ population, political​ climate, and other considerations. These factors relate to the importance of which of the following​ decisions?* A. International marketing objectives B. How many countries to enter C. The targeted level of foreign sales D. The types of countries to enter E. International policies

D. The types of countries to enter

*What is the simplest way to enter a foreign​ market?* A. Through joint ownership B. Through licensing C. Through joint venturing D. Through exporting E. Through direct investment

D. Through exporting

*One market entry strategy is​ __________, in which the company makes agreements with companies in the foreign market to produce its product or provide its service.* A. licensing B. management contracting C. direct investment D. contract manufacturing E. joint ownership

D. contract manufacturing

*When using the global product strategy of​ __________, companies create something new to meet the needs of consumers in a given country.* A. product adaptation B. straight product extension C. dual adaptation D. product invention E. communication adaptation

D. product invention

*What are the four types of joint venture entry​ strategies?* A. ​Exporting, direct​ investment, licensing, and joint ownership B. ​Exporting, contract​ manufacturing, management​ contracting, and joint ownership C. ​Licensing, contract​ manufacturing, management​ contracting, and direct investment D. ​Licensing, contract​ manufacturing, management​ contracting, and joint ownership E. Contract​ manufacturing, management​ contracting, joint​ ownership, and direct investment

D. ​Licensing, contract​ manufacturing, management​ contracting, and joint ownership

*Which of the following statements about the global marketplace is​ correct?* A. Global competition is decreasing. B. ​Economically, there is now a global boom. C. Corruption no longer exists when doing business in foreign markets. D. Taking a domestic business abroad is less risky than in the past. E. Domestic firms need to internationalize to take advantage of growing markets throughout the world.

E. Domestic firms need to internationalize to take advantage of growing markets throughout the world.

*Dunkin Donuts has added menu items that meet the unique taste buds of customers in local​ markets, for​ example, mango pudding donuts in China. This represents which global product​ strategy?* A. Communication adaptation B. Product invention C. Straight product extension D. Dual adaptation E. Product adaptation

E. Product adaptation

*Free trade zones can be described as​ __________.* A. groups of nations who do not regulate trade B. trade zones determined by the U.S. government C. areas where products are traded for free D. areas within a country that do not impose taxes. E. groups of nations organized to work toward common goals in the regulation of international trade

E. groups of nations organized to work toward common goals in the regulation of international trade

*One barrier to international trade is when a country imposes biases against​ bids, restrictive product​ standards, or excessive​ host-country regulations or enforcement. These actions represent​ __________.* A. quotas B. exchange controls C. tariffs D. duties E. nontariff trade barriers

E. nontariff trade barriers

*In balancing standardization and​ adaptation, one common suggestion from international marketers is to​ __________.* A. think locally but act globally B. always use adaptation because it is less costly C. avoid standardization because strategically it is very complicated D. always standardize because the world is now a global village E. think globally but act locally

E. think globally but act locally