MKTG 4280 Ch. 9 McGraw-Hill Connect

The North American Free Trade Agreement aimed to ultimately establish the

Free Trade Area of the Americas.

Identify an accurate statement about big emerging markets.

Half of the people in the world live in one.

Identify a factor that has increased trade among nations.

In developing regions of the world, countries have loosened their trade and investment policies.

Which of the following occurs when the incomes of people increase?

People at all income levels buy more products of all kinds.

Identify an accurate statement about a country in which the income of its citizens is rising.

The middle class begins to buy more expensive items.

Identify a provision of the Latin American Integration Association (LAIA).

The way member countries are treated depends on their economic status.

When trading with the Middle East and Africa, what advantage does Europe have over Asia and the Americas?

They are part of the same market region, and they share time zones.

Identify a characteristic of more-developed countries.

They have high per capita income levels.

Identify a feature of big emerging markets.

They include numerous countries, but only a few of those countries are generating most of the economic growth.

True or false: Marketers should use the same marketing strategies in all underdeveloped economies.

This statement is false. A marketer cannot superimpose a technically elegant marketing strategy on an underdeveloped economy. Marketing efforts must be keyed to each situation, custom tailored for each set of circumstances.

True or false: The success of multinational companies is independent of time zones.

This statement is false. Time zones affect the success of multinational companies. For example, it is easier for European businesses to operate in the Middle East and Africa because they share time zones.

True or false: The Caribbean Community and Common Market (CARICOM) has introduced a common external tariff structure for its member countries.

This statement is true. The introduction of a common external tariff structure was a major step toward the goal of establishing a common currency for members of CARICOM.

True or false: Because Mercosur has helped improve the economies of its member states, other Latin American countries are forming similar economic cooperation groups.

This statement is true. The people of Latin America have become more optimistic as they have witnessed the success of Mercosur.

In an underdeveloped country, marketers must

consider how much the market in that country has already been developed.

The objective of the Dominican Republic-Central American Free Trade Agreement (DR-CAFTA) is to

create jobs and encourage commerce.

The United States-Canada Free Trade Area (CFTA) succeeded in

creating a single, commercial market for all goods and most services in the two countries.

The Internet affects the economies of countries by

decreasing the transaction costs of small firms.

A country named Bordelia has increased its national production and average per capita gross national income. Bordelia is experiencing

economic development.

An increase in national production and average per capita gross domestic product is called

economic development.

When planning a marketing strategy in a foreign land, the most important factor to consider is the country's

economic level.

The objective of the North American Free Trade Agreement among Mexico, Canada, and the United States was to

eliminate all trade barriers between the countries.

The objective of the United States-Canada Free Trade Area (CFTA) was to

encourage trade between the two countries, which would boost their economies.

Which of the following reflects economic progress in Latin American countries?

encouraging private ownership of businesses

The commercial-transition substage of marketing is primarily oriented toward

entrepreneurial and commercial activities.

One goal of the Caribbean Community and Common Market (CARICOM) is to

establish a common currency for all member countries.

The economic progress in Latin American countries is marked by

governments transferring their enterprises to privately owned companies.

According to the classification system of the United Nations, more-developed countries

have high levels of industrialization.

Highways, telephone systems, financial institutions, and electric power lines are part of a country's

infrastructure.

An industrially developing country called Moonopia has recently begun trading at an international level. How would the United Nations classify Moonopia's stage of economic development?

less-developed country

In the Latin American Integration Association (LAIA),

member countries are allowed to enter certain trade agreements with each other.

A nation called Asrogo is experiencing rapid industrialization, but only in certain industries. Because of recently implemented free market reforms, foreigners are hurrying to invest there. How would experts classify Asrogo?

newly industrialized country

According to the classification system used by the United Nations, some countries experience rapid expansion of targeted industries, but not enough to be considered more developed. These countries are called

newly industrialized.

International trade has grown in recent years because

people around the world are improving their standard of living.

The mass-production substage of manufacturing is primarily oriented toward

production and finance.

The rapid economic growth of newly industrialized countries typically stems from

self-employed people engaging in free enterprise.

In the evolution of the marketing process, which marketing institutions are most likely to exist during the agricultural and raw materials stage?

small-scale merchants, traders, and fairs

In the evolution of the marketing process, which marketing institutions are most likely to appear during the marketing stage?

specialized middlemen

Which of the following aimed at creating a free trade area extending from Alaska to Argentina?

the North American Free Trade Agreement

Which trade bloc has engaged in negotiations with the European Union to create the largest free trade area in the world?

the Southern Cone Free Trade Area

Mercosur, the second-largest common-market agreement in the Americas, is based on

the Treaty of Asunción.

The marketing opportunities within a country are most likely to increase when

the level of its economic development increases.

Which substage of the marketing process is primarily oriented toward subsistence?

the self-sufficient stage

The economy often expands in a newly industrialized country when

the state privatizes some of its enterprises, then uses that operating capital for strategically important projects.

Tania lives in an urban slum and earns minimum wages. To which market does Tania belong?

the transitional sector

One of the most common mistakes among economic planners is

thinking distribution of goods is not as important as the production of them.

To achieve economic growth, developing nations are

transferring state-owned enterprises into private ownership.

In the evolution of the marketing process, which marketing institutions are most likely to exist during the small-scale manufacturing stage?

wholesalers and merchants

Identify the measures that convey the attractiveness of American markets to international marketers. (Check all that apply.)

- Do consumers have access to money and other resources? - Is it difficult to conduct business there?

How are small firms in developing countries affected by the Internet?

- It allows them to sell their products in distant lands. - It helps them coordinate their marketing efforts with other small businesses. - It helps them market their products to wealthy consumers.

Identify the accurate statements about big emerging markets. (Check all that apply.)

- Their economic success will encourage nearby regions to follow suit. - Their businesses stimulate the economies of neighboring countries. - Their economies are being restructured substantially.

According to the classification system of the United Nations, which of the following are true of less-developed countries?

- They are developing their industries. - They are just beginning to trade globally.

Identify the characteristics of big emerging markets. (Check all that apply.)

- They encompass large regions. - They are already expanding rapidly or are likely to do so. - They represent an opportunity to sell numerous types of products to a large number of customers.

Identify the factors that created economic chaos in Latin American countries and eventually led to the formation of economic cooperation groups. (Check all that apply.)

- Vital industries were owned by governments instead of private companies. - Businesses had to comply with too many regulations. - Money was owed to other countries. - Policies were designed to protect the economies of individual countries.

As developing countries grow their economies, they are typically also striving to achieve

- industrialization. - a heightened sense of moral responsibility among the citizens. - social equality.

The market metric, the Ease of Doing Business Index, is based on how easy it is to

- launch a company. - register property. - ensure that contracts will be honored.

Match each type of market (in the left column) with its characteristic population (in the right column).

- the modern urban/high-income sector --> people who belong to an expanding Westernized middle class - the traditional rural sector --> people who tend to work in the countryside - the transitional sector ---> people with low incomes, who live in urban slums

Which of the following is most likely to occur when the economy of a country develops?

Distribution channel systems develop.

Identify the countries that are bound by the Dominican Republic-Central American Free Trade Agreement. (Check all that apply.)

Dominican Republic El Salvador Guatemala Honduras Costa Rica United States Nicaragua (NOT ARGENTINA)

How is the development of an economy most likely to affect a country's marketing system?

Each store sells more merchandise than it did previously.

Identify a true statement about Mercosur.

It has engaged in negotiations with Canada to create a free trade program.

How does marketing affect a nation's economy?

It helps ensure that as the country produces more goods, consumers will want to buy them.

How does an increase in the quality of infrastructure impact an economy?

It increases the ability of businesses to be effective.

The second-largest common-market agreement in the Americas is

Mercosur

Which country had plenty of oil and population but needed investment, technology, and exports and, therefore, ratified the North American Free Trade Agreement (NAFTA)?

Mexico