Marketing Chapter 8

If H&M 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.

The Southern Common Market (MERCOSUR) includes

countries in South America.

Some hospitals in the United States find that their need for radiologists to read X-rays is volatile during the evening and early morning hours, especially between 2:00 and 6:00 a.m. This is because the number of emergency room visits needing X-rays is usually lower than those required during daytime operating hours. There is a recent trend where hospitals in the United States are contracting radiologists from countries such as Australia to read the electronically-transmitted X-rays during the evening and early morning hours. This is an example of

outsourcing.

The unification of Europe through the European Union (EU)

permits virtually free trade among the member nations of the EU.

Government restrictions on the amount of a particular country's currency that can be bought or sold are known as

exchange controls.

If Kyrgyzstan levied a duty on all goods purchased from the United States and other countries outside its borders that were brought into Kyrgyzstan, its businesses and citizens would be paying a(n)

import tariff.

The purchase of products from a foreign source is called

importing.

Traditionally, most firms entered international markets

incrementally.

One of the guaranteed constants in the global business environment is

instability.

The World Trade Organization accomplishes all of the following except

lending money to businesses interested in developing international markets.

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 or royalties. This type of arrangement is called

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 exporting.

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.

What is the primary distinction between a joint venture and a strategic alliance in international marketing?

A joint venture is defined in scope, while a strategic alliance is typically represented by an agreement to work together.

One of the effects of USMCA is the simplification of country-of-origin rules. This will likely hinder the international trade activities of

Japan and China.

Which of the following differs from other international trade alliances in its commitment to facilitating business and its practice of allowing the business/private sector to participate in a wide range of its activities?

APEC

Which of the following countries has the highest GDP?

China

Which of the following is the United States' largest trading partner, according to the text?

China

Which of the following describes a company hiring a foreign firm to produce a designated volume of its product to specification?

Contract manufacturing

____ 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

Which of the following is used to help maintain a more favorable balance of trade by a country?

Limiting imports

Which of the following alliances/agreements is the United States not a part of?

MERCOSUR

Which of the following lists the levels of involvement in global marketing from the lowest to the highest?

Domestic marketing, limited exporting, multinational marketing, regional marketing, globalized marketing (the last option)

The forces that affect foreign markets may differ dramatically from those affecting domestic markets. This makes a careful ____ a critical part of a successful international marketing strategy.

Environmental analysis

____ can force businesspeople to buy and sell foreign products through a central agency, such as a central bank.

Exchange controls

The trade alliance that includes Brazil, Argentina, Chile, and other countries is known as

MERCOSUR.

In Singapore, the price of imported Scotch is $30 per glass as opposed to Scotch from Singapore, which is $3. Which of the following do you think accounts for the difference in price?

Import tariff

Caterpillar, maker of large construction equipment in the United States, would like to better understand factors that would affect its ability to export its products to various countries. Which of the following forces determine how trade barriers affect Caterpillar's marketing efforts?

Political and legal

The agreement between the United States, Canada, and Mexico that merges these three countries into one marketplace is called

USMCA.

Old Navy is currently expanding its stores into Canada and Mexico. This expansion is being facilitated by the

United States-Mexico-Canada Agreement.

At the heart of the ____ are agreements that provide legal ground rules for international commerce and trade policy.

WTO

If a newly formed country wanted to increase its international trade and reduce worldwide tariffs, it would most likely try to become a part of

WTO

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 an export agent is to

bring buyers and sellers from different countries together and collect a commission for arranging sales.

When Starbucks decided to expand into the international markets of India, Japan, and Argentina, management realized that there would be significant differences in the standards of living, credit, buying power, and income distribution in those countries. Starbucks is currently examining the ____ forces in its environmental analysis.

economic

Special interest groups and regulatory bodies are ____ forces that must be taken into account in international marketing.

political and legal

Maquiladoras are

production facilities in north-central Mexican states.

The term dumping refers to the sale of

products sold in foreign countries at unfairly low prices.

United Arab Emirates currently limits the number of Michael Kors bags that can be imported during a one-year period, because Michael Kors bags are made in New York, USA. This is an example of a(n)

quota

If India, 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, India would be using a(n)

quota.

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.

sociocultural

Marketers of computer software, music CDs, and books are particularly affected by cultural differences in

standards regarding intellectual property.

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.

A company not involved in manufacturing that links 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.

A trading company acts like a ______, taking on much of the responsibility of finding markets while facilitating all marketing aspects of a transaction.

wholesaler