marketing chapter 2

A __________ strategy is a strategy in which a firm offers a similar but modified product in foreign markets.

Product adaptation

When a firm is considering going global, the __________ step is deciding which market(s) to enter.

second

Which of the following countries make up the economic community known as​ NAFTA?

​Canada, Mexico, and the United States

Which of the following defines standard of living

An indicator of the average quality and quantity of goods and services consumed in a country

Perfect competition is a market structure in which many sellers, all of whom offer similar products, are unable to have an impact on the quality, price, or supply of a product. A monopoly is a market situation in which one firm, the only supplier of a particular product, is able to control the price, quality, and supply of that product.

An oligopoly is a market structure in which a relatively small number of sellers, each holding a substantial share of the market, compete in a market with many buyers. Monopolistic competition is a market structure in which many firms, each having slightly different products, offer unique consumer benefits.

Which of the following describes the World Trade Organization (WTO)?

An organization that sets trade rules for its member nations and mediates disputes between nations

Social norms are specific rules that dictate what is right or wrong, acceptable or unacceptable. Cultural values are deeply held beliefs about right and wrong ways to live.

Collectivist cultures are cultures in which people subordinate their personal goals to those of a stable community. Individualist cultures are cultures in which people tend to attach more importance to personal goals than to those of the larger community.

Which term refers to the process of gathering and analyzing publicly available information about​ rivals?

Competitive intelligence

Which of the following are developed in order to coordinate trade policies and increase the flow of products between​ countries?

Economic communities Groups of countries may also band together to promote trade among themselves and make it easier for member nations to compete elsewhere. These economic communities coordinate trade policies and ease restrictions on the flow of products and capital across their borders.

which of the following describes a relationship developed between a firm seeking a deeper commitment to a foreign market and a domestic firm in the target country?

Strategic alliance

Of the various market entry strategies, direct investment has a high level of risk. An exporting strategy has a low level of risk

Strategic alliances have a medium level of risk. Contractual agreements have a medium level of risk.

​Susan, of Eco​ Threads, states that some employees are not as productive as others or as productive as they could be. This is an example of a company​ _______________.

Strengths and weaknesses are internal to an​ organization; weaknesses are areas that the company can and should improve. Opportunities and threats are external to the environment and are not controllable.

A country in which the economy is shifting its emphasis from agriculture to industry is known as a __________ country.

developing

A backward invention strategy is a strategy in which a firm __________.

develops a less advanced product to serve the needs of people living in countries without a developed infrastructure

Which of the following best describes social norms?

specific rules that dictate what is right or wrong, acceptable or unacceptable?

​France, Germany,​ Greece, Ireland, and Italy are all members of which economic​ community?

EU

What does Gross Domestic Product (GDP) measure?

The total dollar value of goods and services produced by a nation within its borders in a year

If a firm retains the same product for domestic and foreign​ markets, the company is demonstrating which type of product​ strategy?

Straight extension strategy

Within the food​ industry, a growing trend is​ locavorism, which means consumers actively look for products that come from farms within​ _____ miles of where they live.

50 to 100

A product adaptation strategy is a strategy in which a firm offers a similar but modified product in foreign markets. A product extension strategy is a strategy in which a firm offers the same product in both domestic and foreign markets. A product invention strategy is a strategy in which a firm develops a new product for foreign markets.

A backward invention strategy is a strategy in which a firm develops a less advanced product to serve the needs of people living in countries without a developed infrastructure.

A country in which the economy is shifting its emphasis from agriculture to industry is known as a developing country. A least-developed country is at the lowest stage of economic development.

A developed country is one that boasts sophisticated marketing systems, strong private enterprises, and bountiful market potential for many goods and services. BRIC countries comprise the largest and fastest-growing of the developing countries: Brazil, Russia, India, and China.

A developing country is one that is shifting its emphasis from agriculture to industry. A least-developed country is at the lowest stage of economic development.

A developed country is one that boasts sophisticated marketing systems, strong private enterprises, and bountiful market potential for many goods and services. BRIC countries comprise the largest and fastest-growing of the developing countries: Brazil, Russia, India, and China.

A strategic alliance is a relationship developed between a firm seeking a deeper commitment to a foreign market and a domestic firm in the target country. A joint venture is an alliance in which a new entity owned by two or more firms allows the partners to pool their resources for common goals.

A licensing agreement is an agreement in which one firm gives another firm the right to produce and market its product in a specific country or region in return for royalties. Franchising is a form of licensing involving the right to adapt an entire system of doing business.

An oligopoly is a market structure in which a relatively small number of sellers, each holding a substantial share of the market, compete in a market with many buyers. Perfect competition is a market structure in which many sellers, all of whom offer similar products, are unable to have an impact on the quality, price, or supply of a product.

A monopoly is a market situation in which one firm, the only supplier of a particular product, is able to control the price, quality, and supply of that product. Monopolistic competition is a market structure in which many firms, each having slightly different products, offer unique consumer benefits. previous back to review

A backward invention strategy is a strategy in which a firm develops a less advanced product to serve the needs of people living in countries without a developed infrastructure. A product adaptation strategy is a strategy in which a firm offers a similar but modified product in foreign markets

A product extension strategy is a strategy in which a firm offers the same product in both domestic and foreign markets. A product invention strategy is a strategy in which a firm develops a new product for foreign markets.

A backward invention strategy is a strategy in which a firm develops a less advanced product to serve the needs of people living in countries without a developed infrastructure. A product adaptation strategy is a strategy in which a firm offers a similar but modified product in foreign markets.

A product extension strategy is a strategy in which a firm offers the same product in both domestic and foreign markets. A product invention strategy is a strategy in which a firm develops a new product for foreign markets.

A product adaptation strategy is a strategy in which a firm offers a similar but modified product in foreign markets. A product extension strategy is a strategy in which a firm offers the same product in both domestic and foreign markets.

A product invention strategy is a strategy in which a firm develops a new product for foreign markets. A backward invention strategy is a strategy in which a firm develops a less advanced product to serve the needs of people living in countries without a developed infrastructure.

The​ _____ consisted of a series of​ anti-government protests and uprisings in a number of Arab countries that were largely aided by new social media​ tools, gave hope to many that dictatorships in countries in the Middle East would become democracies and bring a better life to peoples of the countries.

Arab Spring

Which of the following would be considered a developing or newly industrialized​ country?

Brazil

​_____ occurs when someone voluntarily offers payments to get an illegal advantage.

Bribery

What are the basic values and rules of conduct that guide the employees within an​ organization?

Business ethics Ethics are rules of conductlong dashhow most people in a culture judge what is right and what is wrong. Business ethics are basic values that guide the behavior of individuals within a business organization.

When a domestic government seizes a foreign firm's assets without any reimbursement, this is known as expropriation. Nationalization occurs when the domestic government reimburses a foreign company for its assets after taking it over.

Consumer ethnocentrism refers to consumers' feeling that products from their own country are superior or that it is wrong to buy products produced in another country. Extortion occurs when someone in authority extracts payments under duress.

What is the purpose of the International Monetary Fund​ (IMF)?

Controlling fluctuations in exchange rates The primary purpose of the IMF, founded in 1944, is to ensure the stability of the international monetary exchange by controlling fluctuations in exchange rates

Which of the following is NOT an example of a firm's efforts toward greater sustainability?

Decreasing operational efficiences

When a firm is considering going global, the second step is deciding which market(s) to enter. Making the "go" or "no go" decision is the first step a firm takes when it is considering going global.

Defining the level of commitment is the third step a firm takes. Determining how to adapt marketing mix strategies is the fourth and final step a firm takes.

Extortion is when someone in authority extracts payment under duress. Bribery is when someone voluntarily offers payment to get an illegal advantage.

Dumping is when a company tries to get a toehold in a foreign market by pricing its products lower than it offers them at home. Expropriation is when a domestic government seizes a foreign company's assets without any reimbursement.

Gross domestic product (GDP) measures the total dollar value of goods and services produced by a nation within its borders in a year. The foreign exchange rate (forex rate) is the price of a nation's currency in terms of another currency.

Economic infrastructure is the quality of a country's distribution, financial, and communication systems. Standard of living is an indicator of the average quality and quantity of goods and services consumed in a country.

Tariffs are taxes on imported goods, designed to give domestic competitors an advantage in the marketplace by making foreign competitors' goods more expensive than their own products. Import quotas are limitations set by a government on the amount of a product allowed to enter or leave a country.

Embargos are quotas that completely prohibit specified goods from entering or leaving a country. Economic communities are groups of countries that band together to promote trade among themselves and to make it easier for member nations to compete elsewhere.

Which of the following refers to a sustainability metric that refers to the net fuel energy in BTUs consumed to provide organizational heat and power​ requirements?

Energy intensity

Which of the following occurs when someone in authority extracts payment under​ duress?

Extortion

Which law prohibits harmful practices in the production of beef meant for human​ consumption?

Food and Drug Act

Which of the following is the MOST commonly used measure of a​ country's economic​ health?

GDP

Which product strategy works on the premise that people in different cultures have strong and different product​ preferences?

Product Adaptation product adaptation (modified localization) recognizes that in many cases people in different cultures do have strong and different product preferences.

Which term refers to items that are imported without the consent of the trademark​ holder?

Gray market goods

Embargos are quotas that completely prohibit specified goods from entering or leaving a country. Tariffs are taxes on imported goods, designed to give domestic competitors an advantage in the marketplace by making foreign competitors' goods more expensive than their own products.

Import quotas are limitations set by a government on the amount of a product allowed to enter or leave a country. Local content rules are a form of protectionism stating that a certain proportion of a product must consist of components supplied by industries in the host country or economic community.

What part of the sustainable marketing mix involves producing more environmentally friendly​ products, such as electric​ automobiles?

Product strategies

Decreasing operational efficiencies is not an example of sustainability. Firms need to increase operational efficiencies in order to be considered sustainable. Decreasing use of raw materials is an example of sustainability.

Increasing use of recycled materials is an example of sustainability. Preventing discharge of wastes into the natural environment is an example of sustainability.

Which term refers to a market entry strategy involving two or more firms creating a new​ entity, allowing the partners to pool their resources for common​ goals?

Joint venture

Which of the following market entry strategies involves an agreement in which one firm gives another firm the right to produce and market its product in a specific country or region in return for​ royalties?

Licensing agreement

Which of the following refers to a form of protectionism that stipulates a certain proportion of a product must consist of components supplied by industries in the host country or economic​ community?

Local content rules

Which of the following is most likely a strength of Eco​ Threads?

Loyal employees are considered a strength of​ Eco-Threads. In a SWOT or situation​ analysis, strengths and weaknesses are focused on internal forces in an organization.​ Likewise, opportunities and threats are focused on forces that are external to the organization.

Firms consider four steps when determining whether or not to go global. Which of the following is the third step in the​ process?

Market-entry strategy and commitment

Which competitive macroenvironment do many athletic shoe​ manufacturers, including​ Nike, New​ Balance, Adidas, and more​ recently, Under​ Armour, vigorously compete with one another for​ consumers?

Monopolistic competition

The World Trade Organization (WTO) is an organization that sets trade rules for its member nations and mediates disputes between nations. GATT is an international treaty to reduce import tax levels and trade restrictions. It was replaced by the WTO.

NAFTA is an economic community comprising the member nations of Canada, Mexico, and the United States. The G8 is an informal forum of the most economically developed countries that meets annually to discuss major economic and political issues facing the international community.

Which of the following is a sustainability metric that refers to pounds of pollutants emitted in the process of creating organizational​ output?

Pollutant​ (greenhouse gas) emissions

What is the goal of price strategies for sustainable marketing​ practices?

Prices that are close to prices of other products Sustainable marketing practices aim to establish prices for green products that are the same or close to the prices of other products.

World trade is the flow of goods and services among different countries—the value of all the exports and imports of the world's nations. Countertrade is a type of trade in which goods are paid for with other items instead of cash.

Protectionism is a policy adopted by a government to give domestic companies an advantage. Gross domestic product (GDP) is the total dollar value of goods and services produced by a nation within its borders in a year.

Which of the following terms refers to limitations set by a government on the amount of a product allowed to enter or leave a​ country?

Quota

What are embargos?

Quotas that completely prohibit specified goods from entering or leaving a country

An economy experiencing falling​ demand, employment, and income is in which stage of the business​ cycle?

Recession

Which business cycle indicates falling​ demand, employment, and​ income?

Recession All economies go through cycles of prosperity​ (high levels of​ demand, employment, and​ income), recession​ (falling demand,​ employment, and​ income), and recovery​ (gradual improvement in​ production, lowering​ unemployment, and increasing​ income).

Which of the following terms indicates ways to​ dress, how to​ speak, what to​ eat, how to​ eat, and how to​ behave?

Social norms

Which of the following describes tariffs?

Taxes on imported goods, designed to give domestic competitors an advantage in the marketplace by making foreign competitors' goods more expensive than their own products

Why might a firm decide it is time to globalize a​ business?

The domestic market has peaked Many​ times, a firm decides​ it's time to go global because the opportunity for growing the business and greater profit within its domestic market has already peaked and may even be declining while the foreign markets offer opportunities for large growth.

An ethical philosophy that advocates a decision that provides the most good or the least harm is the utilitarian approach. The rights approach advocates the decision that does the best job of protecting the moral rights of all.

The fairness or justice approach advocates the decision that treats all human beings equally. The virtue approach advocates the decision that is in agreement with certain ideal values.

​Susan, Mitch, and​ Dean, employees at Eco​ Threads, are most likely involved in which level of​ planning?

The first level​ (or strategic​ planning) includes developing the mission​ statement, assessing the internal and external environment​ (resulting in a SWOT​ analysis), setting​ objectives, establishing the business​ portfolio, and developing growth strategies. Making​ large-scale employment and financial decisions are examples of strategic planning.

What is world trade?

The flow of goods and services among different countries—the value of all the exports and imports of the world's nations

Standard of living is an indicator of the average quality and quantity of goods and services consumed in a country. The economic infrastructure is the quality of a country's distribution, financial, and communications systems.

The level of economic development paints the broader economic picture of a country. Local content rules are a form of protectionism stipulating that a certain proportion of a product must consist of components supplied by industries in the host country or economic community.

"Which option best serves the community as a whole, not just some members?" is the question that applies to the common good approach of ethical philosophy. The question "Which option will produce the most good and do the least harm?" applies to the utilitarian approach.

The question "Which option treats people equally?" applies to the rights approach. The question "Which option leads me to act as the sort of person I want to be?" applies to the virtue approach.

Which of the following is an ethical philosophy that advocates a decision that provides the most good or the least harm?

Utilitarian

Which of the following questions applies to the common good approach of ethical philosophy?

Which option best serves the community as a whole, not just some members?

Which of the following is defined as the flow of goods and services among different countrieslong dashthe total value of all the exports and imports of the​ world's nations?

World trade

Which of the following refers to the movement of goods and services between​ countries?

World trade World trade refers to the flow of goods and services among different countrieslong dashthe total value of all the exports and imports of the​ world's nations.

Which of the following describes an oligopoly?

a market structure in which a relatively small number of sellers, each holding a substantial share of the market, compete in a market with many buyers

The managers of Eco Thread have been asked to prepare a report regarding the most effective and efficient way to cut the​ company's budget. What is the next step that the managers should​ take, according to the strategic planning​ process?

establish the business portfolio The​ Eco-Thread team was engaged in step 4​ (establishing business​ portfolios) of strategic planning. They discussed allocation of financial and human resource assets. A portion of the strategic planning process focuses on those elements to clearly set a strategic direction for the company.

The price of one​ country's currency in terms of another​ country's currency is known as the​ _____.

exchange rate

When a domestic government seizes a foreign firm's assets without any reimbursement, this is known as __________.

expropriation

Which of the following encourages organizations to pay workers in developing countries an equitable wage instead of a minimum​ wage?

fair Trade Some firms strive to choose fair trade suppliers. This term refers to companies that outsource production only to firms that pay workers in developing countries a fair wage.

What type of agreement is used when one group is given the right to use an entire way of doing business from​ another?

franchising Franchising is a form of licensing that gives the franchisee the right to adopt an entire way of doing business in the host country.

Which of the following is used to measure the​ "health" of a​ country's economic​ environment?

gross domestic product (GDP) The most commonly used measure of economic health is a​ country's gross domestic product​ (GDP): the total dollar value of goods and services it produces within its borders in a year.

Of the various market entry strategies, direct investment has a __________ level of risk.

high

A developing country is one that __________.

is shifting its emphasis from agriculture to industry

Which of the following is a market structure in which many sellers, all of whom offer similar products, are unable to have an impact on the quality, price, or supply of a product?

perfect competition

A __________ strategy is a strategy in which a firm offers a similar but modified product in foreign markets.

product adaptation

Eco-Thread managers were asked to look at what the company does well that would be difficult for competitors to emulate. The managers were most likely reviewing the​ _______________ of the company.

strengths Performing a Situation Analysis is Step 2 in the Strategic Planning​ Process, which examines​ strengths, weaknesses,​ opportunities, and threats in the​ company's environment. Strengths are internal to the company and state what the company is able to do well that other firms would find difficult to duplicate.

The idea that one should do the most good and the least harm is the​ _____ approach to decision making.

utilitarian For​ example, if one uses the utilitarian approach to make a decision on different safety features to include in a new​ product, the ethical choice is the one that provides the most good and the least harm.

What is extortion?

when someone in authority extracts payment under duress