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.