International Mkt Exam 3
• APEC is a body formed by the major governments of the Asian countries with the primary purpose of protecting their local industries against the market domination by their western
- FALSE 1. As global markets continue to homogenize and simultaneously
• The term greater china refers to the information technology corridor in north China
- FALSE 1. The term "the Greater China" refers to both the Peoples Republic of China (PRC) and the Republic of China (ROC) or Taiwan
• According to C.K. Prahalad, the global market consists of the 4 billion people across the globe with annual incomes of less than $1200 is termed substance market.
- FALSE 10. Developing countries and markets bottom of the pyramid mkt (BOPMS) consisting of the 4 billion people across the globe with annual incomes of less than 1200.
• Historically, standards have been used to effectively increase market access.
- FALSE 10. Standards have been used to limit market access
• The Council of ministers of the EU can enact into law all proposals by unanimous vote
- FALSE 11. Council can retract its law proposals by majority vote except for taxes
• In recent years, the US has emerged as Japan's single largest trading partner, surpassing the Southeast Asian countries
- FALSE 11. U.S. was Japanese single largest trading partner however now mkt in China and SE Asia are increasing more important to Japanese.
• The decision of the European Court of Justice can be appealed in national courts.
- FALSE 12. EC is like the Supreme Court no higher Court final say
• Tactical planning is essentially long term, incorporating generalized goals for the enterprise as a whole
- FALSE 13. 4.a critical first step in the inter planning process is to decide in which existing country markets key to make an investment
• The Baltic state had a history of free trade regime.
- FALSE 13. Shared a legacy as inefficient industry and soviet style command
• Europe and Asia had a trade group that emerged and persisted since the dissolution of the Soviet Union called the Newly independent States
- FALSE 14. The common wealth of independent States (CIS)
• In the year 2009, Germany became the world's biggest exporter ahead of China
- FALSE 2. 21st Century China successes 2009 became largest exporter ahead of Germany
• As global markets continue to homogenize and diversify, the best companies will focus on country as the primary segmentation variable
- FALSE 2. Country has been the most obvious segmentation variable particularly for Americans
• Age and gender have been the most obvious international market segmentation variables, particularly for Americans
- FALSE 3. International cooperate planning is essentially long term. In operating generalized goals for the enterprise as a whole
• The PNTR status given to China contributed much toward increasing the import barriers on American products and services.
- FALSE 3. Permanent Normalized Trade Relations a. Entry to the WTO cut import barriers previously imposed on US products and services- Nixon China is a part of WTO
• The most basic level of economic integrations and cooperation is geographical local federation (GLF)
- FALSE 3. The most basic level of economic integration and cooperation is the regional cooperation for development (RCD)
• China is now the biggest market for personal computers
- FALSE 4. China is the 2nd biggest for personal Corporate following only behind U.S
• The European Union is a good example of a free trade area
- FALSE 4. The EU is a common market that is on the road to a political union
• A customs union is the most fully integrated form of regional cooperation.
- FALSE 5. A political union is the most fully integrated form of regional cooperation. It involves complete political economic integration.
• The Hong Kong special administration region government stresses the predominant role of the public sector over the private sector
- FALSE 5. Special administration Regent Continues a generally noninventrntionist approach to economic policy that stresses the predominant role of the private sector
• A commonwealth of nations is an organization providing for the strongest possible economic integration relationship
- FALSE 6. A common wealth of nations is a voluntary organization providing for the loosest possible relationship that can be classified as an economic integration
• The sector that was hit the hardest during the Japanese recession was the real estate sector
- FALSE 6. During the Japanese recession lending institutions hit hardest especially World Class Banks
• The Commonwealth of Independent State (CIS) was formed by Britain because it did not want to join the European Economic Community (EEC)
- FALSE 7. The common wealth of independent states (CIS) was formed by the former Soviet Union.
• One of the chief features of Maastricht Treaty (1992) was the 12 members of the EC agreed to an economic but not political integration
- FALSE 8. The 12 members of the European Community ratified the Mass. Treaty and
• The Four Asian Tigers are: China, Thailand, India, and North Korea
- FALSE 9. Most rapidly growing economy Hong Kong south Korea Singapore and Taiwan
• The EU is currently an officially established political union.
- FALSE 9. The economic and monetary union is in place and all participating members share a common currency.
• The importance of political unity to fully achieve all the benefits of economic integration has driven European countries to form the WTO
- FALSE Communist threat no longer exists but the importance of political unity to fully achieve all the benefits of economic integration has driven European countries to form European Union (EU)
• Global competition has put more power in the hands of the seller
- FALSE Global competition has shifted the power I. The marketplace to the consumers and the latter have more choices because more companies are competing for their attention
• Licensing is a form of exporting
- FALSE Lisencing is a form of foreign market e try it is generally viewed as a supplement to exporting or manufacturing
• Nations with complementary economic bases are most likely to encounter frictions in the development and operation of a common market unit.
- FALSE Nations with complementary economy base are least likely to encounter friction in development of common market units
• A Korean television manufacturer recently invested in a new television tube plant in Mexico. this form of int. business is aptly named int. licensing
- FALSE This is an ex of direct forgiven investment. In this type if investment companies may invest locally to capitalizes on low cost to avoid
• Joint ventures are similar in structure and organization to minority holding by a multination company in a local firm
- FALSE a joint venture is diff from other types of strategic alliances or collaborative relationship in that a joint venture is a partnership of two or more participating companies
• Though quality is always important in the customers mind, in general, they dont expect it to be a given.
- FALSE customer expects performance quality to be a given quality to the consumer this Is more than compliance
• With indirect exporting, the company sells to a customer in another country
- FALSE indirext exporting usually means that the company sells to a buyer importer or distributor in the home country which I pm turn exports the product
• If a product is culturally sensitive, then decisions related to the product are more likely to be centralized
- FALSE.if a product is crucially sensitive the decisions are more likely to be decentralized
• The US is now Japan's most important trading partner
- FALSE: china is the most important
• One of Japan's advantages over the other countries is its language; the syntax of the Japanese language is similar to that of certain programming languages
- FASLE 7. Serious disadvantages in the info. Age its complex language not only did its alphabet systems harder software innovations appropriate for world market but fundamental indirectness of the Japanese linguistics hindered info.
• 10 high tech companies joined forces to produce and market their products in China. By joining together, these companies were able to enter the Chinese market for the first time. Known as Consortium
- TRUE
• 10 new countries joined the EU in 2004 followed by Bulgaria and Romania in 2007
- TRUE
• A French company sells its products to a large retailer in France, who in turns sells those products all over Europe and Asia. This is an example of indirect exporting.
- TRUE
• A business relationship established by 2 or more companies to cooperate out of mutual need and to share risk in achieving a common objective is called a strategic international alliance (SIA)
- TRUE
• A free trade are (FTA) provides its members with a mass market without barriers to impeded the flow of goods and services
- TRUE
• A major issue that China has to address in its path to economic growth is improving human rights
- TRUE
• According to analyst, Japan's long entrenched Liberal Democratic political party was one of the reasons for the Japanese crisis
- TRUE
• An advantage of a matrix organization structure in int. business is that it permits management to respond to the conflicts that arise among functional activity, product, and geography.
- TRUE
• At the most general level the WTO represents the most important and comprehensive trade agreement in history
- TRUE
• Building a strategic int. alliance takes several steps to be successful. The first step in building strategic alliances is called "dating"
- TRUE
• China's "one country, two systems" agreement with Hong Kong guarantees the latter a high degree of autonomy
- TRUE
• Consumer perception of a quality product often have more to do with market -perceived quality than performance quality
- TRUE
• Exporting is a common approach of market entry for mature int. companies with strong marketing and relational capabilities.
- TRUE
• Growth of free trade areas that are tariff free among members but have common tariff for nonmembers creates an opportunity that can be capitalized on by direct investment.
- TRUE
• In Phase 2 of the Int. Planning process, the results of the analysis frequently indicates that the marketing mix would require such a drastic adaptation that a decision not to enter a particular market is made.
- TRUE
• In the Treaty of Amsterdam (1977), the EU agree to accommodate the changes brought about by the monetary union and the admission of new members
- TRUE
• In the context of planning for global markets, the planning process is a primary medium of organizational learning
- TRUE
• In view of China's size, diversity, and political organization, it is not possible to have one-growth strategy for China
- TRUE
• Incorrect decisions taken in Phase 2 of the international planning process lead to products inappropriate for the intended market or costly mistakes in pricing, advertising, and promotion
- TRUE
• Iran, Pakistan, and Turkey, formerly the Regional Cooperation for Development(RCD), have renamed their regional group the Economic Cooperation Organization.
- TRUE
• Multinational market regions are those groups of countries that seek mutual economic benefit from reducing interregional trade and tariff barriers
- TRUE
• Negotiators from the Beijing areas are known for their unusual bureaucratic sloth and imperialist perspective.
- TRUE
• Northeast China was the industrial and technological center of the country in the 1970s and 80s
- TRUE
• Patent rights, trademark rights and the rights to use technological processes are granted in foreign licensing.
- TRUE
• The Asian financial crisis led to the creation of the ASEAN +3
- TRUE
• The European Union was created when the 12 nations of the European Community ratified the Maastricht Treaty
- TRUE
• The Hong Kong dollar is freely convertible
- TRUE
• The Japanese have an affinity for united effort
- TRUE
• The Phase 3 of the Int. planning process involves developing a marketing plan and devising budgets and profit expectations
- TRUE
• The US has granted normal trade relations status to Vietnam
- TRUE
• The amount of equity required by a company to use different modes of entry in a new market affects the risk, return and control.
- TRUE
• The blueprint for the European Union began with the Treaty of Rome in 1957
- TRUE
• The commonwealth of Independent States is a loose economic and political alliance with open borders but no central government.
- TRUE
• The cost and quality of the product are among the most important criteria by which a purchase is made.
- TRUE
• The decision to standardized or adapt a product is crucial in delivering quality
- TRUE
• The first soviet republics to declare independence were the Baltic States
- TRUE
• The most advanced and viable of Africa's regional organization is called the Southern African Development Community
- TRUE
• The official aim of a multinational market is to protect businesses that operate within its borders
- TRUE
• The region of Shenzhen was designated as China's first special economic zone
- TRUE
• With respect to the int. planning process, the marketing plan begins with a situation analysis and culminates in the selection of an entry mode and a specific action program for the market
- TRUE
• With the adoption of the euro, price differentials are much easier to spot and the consumer can search for the best bargains in the brand name products.
- TRUE
• Franchising is rapidly growing form of licensing in which the franchiser provides a standard package of products, systems, and management services, and the franchisee provides the market knowledge, capital, and personal involvement in management.
- TRUE .
• Owing to the deeply corrupt systems, most of the US manufactures in India are leaving for other countries or pulling their money back home
-False 8. Widespread corruption and a deeply ingrained system of bribery in India make every transaction complicated and expensive. Nevertheless a survey of U.S. manufactures shows that 95% of respondents with Indian operations plan on expanding and none say they are leaving They are hooked on the country's cheap qualified labor and the potential of a massive market.
• Strategic planning is conducted at the highest levels of management and deals with products, capital, research and long term and short term goals of the company
-TRUE
• 2,000,000 tacos sold 3% tacos sold in SA 25% tacos sold on campus 180 days
2,700,000 Estimated Market Size
• 4,000 people 5.75 for price 52 weeks
4,000 x 52 x 5.75 = 1,196,000 (Do it)
• Joint venture is a partnership of two or more participating companies Where unfamiliar legal and cultural barriers exist, it is preferable to buy an existing business than to enter into a joint venture
False Where companies face unfamiliar legal and culture barriers joint ventures are preferred to buying existing businesses
• An important objective of the member states of the UN is bringing about mutual economic development
TRUE
• China's longest border is with Russia
TRUE
• Liaoning and Jilin provinces of China share borders with North Korea, and both provinces host substantial numbers of Korean minorities -
TRUE
• Spreading the portfolio of markets served being important stability of revenues and operations to many global companies -
TRUE
• The world trade organization is wholly dedicated toward making trade among nations more efficient
TRUE
An important objective of the member states of the UN is bringing about mutual economic development
True
Multinational market regions are those groups of countries that seek mutual economic benefit from reducing interregional trade and tariff barrierS
True
The world trade organization is wholly dedicated toward making trade among nations more efficient
True
• Buyers x Price x Quantity = Market Size .90 per drink student body=30,000 5 12oz cans per month
• 30,000 x 5 x .90 = 1,215,000 (Do it)
• The first phase of the international planning process is to rapt the marketing mix to target markets
- FALSE (12-1)
• The Arab gulf States, Egypt and morocco have worked out an agreement on the Gulf Arabian Free Trade Area (GAFTA)
FALSE 15. Greater Arab Free Trade Area (GAFTA)
• Tianjin is China'a largest industrial city -
FALSE: Shanghai, Bejing, and then Tianjin
• To be a success in the marketplace today, the best companies will focus on country as the primary segmentation variable -
FALSE: best companies will avoid the trap of focusing on country as the primary segmentation. Global markets continue to homogenize and diversify simultaneously.
• At present, low value-added manufacturing in textiles and heavy equipment manufacturing industries account for the cast majority of Shanghais industrial employment -
FALSE: medium value added industries account for Shanghais
• The Chinese central government spends almost 50 percent of it budget for the rural poor who amount to almost three-fourths of the Chinese population -
FALSE: receive 10%, that is less than $100 a head for rural roads, water, power supplies
• The market segmentation augment in global marketing is framed as "standardization vs. adaption" -
FALSE: that was in the 70's. 80's globalization vs. localization. 90's global integration vs. local responsiveness
• As they were closest to foreign influences, negotiators in Taiwan are considered to be the most liberal. -
FALSE: the most conservative.
