MKTG 5

A company that provides goods or services in many different countries is known as a(n):

multinational corporation

A company that is heavily engaged in international trade, beyond exporting and importing, is called a:

multinational firms

Production of uniform products that can be sold the same way all over the world

global market standardization

___ ___ ___is the total market value of all final goods and services produced in a country for a given time period (usually a year or a quarter of a year

(Gross Domestic Product) GDP

At the time it was instituted, the ____ created the world's largest free trade zone. Ratified by the U.S. Congress in 1993, the agreement includes Canada, the United States, and Mexico, with a combined population of 441 million and an economy of $17 trillion

(North American Free Trade Agreement) NAFTA

North American free trade agreement did all of the following:

(all of the above): created the world's largest free trade zone including Canada, the US & MX, allowed US & Canadian financial services companies to own subsidiaries in MX, removed many tariffs and duties so that MX, Canada and the US could trade more freely, expanded opportunities

Many people fear trade and globalization because:

(all of the above): it lowers the price of goods and services, the threat of outsourcing leads to lower wages, imports lead to the loss of American jobs.

Which of the following are important demographic factors to consider?

(all of the above): location, age, education

______ is the legal process whereby a licensor allows another firm to use its manufacturing process, trademarks, patents, trade secrets, or other proprietary knowledge

Licensing

An ________a third type of intermediary, are foreign sales agents/distributors who live in the foreign country and perform the same functions as domestic manufacturers' agents, helping with international financing, shipping, and so on

export agent

The _____ plays the traditional broker's role by bringing buyer and seller together. The manufacturer still retains title and assumes all the risks. They operate primarily in agricultural products and raw materials.

export broker

The ________ viewpoint assumes that consumers in different countries will want similar products and respond similarly to the same marketing campaign.

global marketing standardization

Which of the following is NOT an external environmental factor influencing global markets?

hiring policies

A coffee company from the U.S. joins with a Dutch retailer to create a new chain of cafes in Europe. This is an example of:

joint venture

In a(n) _____ the domestic firm buys part of a foreign company or joins with a foreign company to create a new entity

joint venture

McDonald's rejects the global market standardization perspective by:

offering different products to suit local tastes

The three most densely populated nations in the world are ___, ___, ___.

China, India, and Indonesia

___ is the largest economy int he world

European Union

Which method of entering the global marketplace would be the least risky

Exporting capital

The ____ was founded in 1945, one year after the creation of the World Bank, to promote trade through financial cooperation and eliminate trade barriers in the process

IMF (International Monetary Fund)

The main impact of NAFTA was to open the ___ to U.S. companies.

Mexican market

________ is the largest economy in the world.

The European Union

The ______ is the world's largest exporter

US

___ replaced GATT

WTO

Active ownership of a foreign company or of overseas manufacturing or marketing facilities is called ___ ____ ____

direct foreign investment

The ____ was instituted in 2005. Besides the United States, the agreement includes Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, and Nicaragua.

CAFTA (Central America Free Trade Agreement)

(1)trying to increase an overseas market share, (2)temporarily distributing products in overseas markets to offset slack demand in the home market, (3)lowering unit costs by exploiting large-scale production, (4)attempting to maintain stable prices during periods of exchange rate fluctuations. THESE ARE QUALITIES FOR WHAT?

Dumping

*If Ford sold cars in China for $4000 less than what they charged in the U.S., they would be engaging in:

Dumping

The ___ ___ is one of the world's most important free trade zones and now encompasses most of Europe. More than a free trade zone, it is also a political and economic community. As a free trade zone, it guarantees the freedom of movement of people, goods, services, and capital between member states. It also maintains a common trade policy with outside nations and a regional development policy.

European Union (EU)

The ___ ____ is an agreement that has dramatically lowered trade barriers worldwide. Adopted in 1994, the agreement has been signed by 151 nations. It is the most ambitious global trade agreement ever negotiated. The agreement has reduced tariffs by one-third worldwide

Uruguay Round

The ____ of trade negotiation created the ___ which replaced GAAT. This trade agreement dramatically lowered trade barriers worldwide

Uruguay Round; WTO

The ___ ____ offers low-interest loans to developing nations

World Bank

Which of the following is a key element to a global vision?

being aware of threats from foreign competitors

In 2006, a number of countries banned the importation of British beef in reaction to several cases of Mad Cow Disease. This is an example of a(n):

boycott

The most common intermediary is the export merchant, also known as a __________, which is usually treated like a domestic customer by the domestic manufacturer. The buyer for export assumes all risks and sells internationally for its own account

buyers for export

A company that is ___ intensive spends more on equipment than on labor.

capital

A ________ economy does not substantially increase employment.

capital intensive

The primary benefit of NAFTA to the United States is:

cheaper imports

___ _____ is private label manufacturing by a foreign company

contract manufacturing

One of the principal benefits of job outsourcing to firms is:

cost savings

In ____, all or part of the payment for goods or services is in the form of other goods or services

countertrade

Global marketing external environment factors are:

culture, economic, technological, political, natural resources

A ___ is a limit on the amount of a specific product that can enter a country.

quota

The U.S. government limits the number of refrigerators that can be imported from Japan to 100,000 per year. This is an example of:

quotas