Chapter Eight Quiz
When a firm's products sell in foreign countries with little or no effort to obtain foreign sales, the firm is engaging in
limited exporting
Firms that have operations or subsidiaries located in many countries are referred to as
multinational enterprises.
The purchase of products from a foreign source is called
importing
One of the guaranteed constants in the global business environment is
instability
The role of an export agent is to
bring buyers and sellers from different countries together and collect a commission for arranging sales
The ____ is the difference in value between a nation's exports and its imports.
balance of trade
A trading company acts like a ______, taking on much of the responsibility of finding markets while facilitating all marketing aspects of a transaction.
wholesaler
Which of the following is often used to raise revenue for a country and/or to protect domestic products?
Import tariff
____________________ involves developing and performing marketing activities across national boundaries.
International marketing
The General Agreement on Tariffs and Trade was initially implemented to do which of the following?
Reduce worldwide tariffs and increase international trade
A business partnership between a domestic firm and a foreign firm is known as
a joint venture.
The gross domestic product is
an overall measure of a nation's economic standing
The feasibility and degree of globalization is determined by the
degree of similarity among the various environmental and market conditions.
The degree to which a firm is able to "think globally, act locally" affects the success of the firm's _________________ strategy as it goes international.
globalization
Brand name, product characteristics, packaging, and labeling are some of the ______________ marketing mix variables to standardize for international markets.
easiest
The practice of contracting with an organization to perform some or all business functions in a country other than the country in which the product will be sold is known as
offshore outsourcing
The term dumping refers to the sale of
products sold in foreign countries at unfairly low prices.
Sometimes business partnerships are formed between traditional rivals competing for market share in the same product class. These partnerships are known as
strategic alliances.
Franchising offers all the following benefits for franchisers except
the franchisee's revenue stream is fairly consistent because franchisers pay fixed fees and royalties.
A company not involved in manufacturing that brings together buyers and sellers in different countries is usually referred to as a
trading company.