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Services account for almost ______ of U.S. GDP

3/4

Which of the following is NOT a trade bloc in the AsiaPacific region?

ACCA

Which two countries are the core members of MERCOSUR?

Argentina and Brazil

Customization is likely to be forced by all of the following EXCEPT

CEOs' preferences

Before the U.S. pulled out of the agreement, which country has notably been left out of the TransPacific Partnership?

China

All of the following are disadvantages of joining the Eurozone EXCEPT

Exchange rate risks are lower for companies inside the Eurozone

The mode of entry that provides firms with the most control is _____, while the least expensive is ______

FDI; exporting

What countries were granted the most-favored-nation status under the GATT?

GATT member countries

Executives at Gator Beer, a U.S. firm, have decided to enter the Chinese market through a licensing agreement with a beverage manufacturer located in Beijing. Which of the following statements, if true, would most likely undermine this decision?

Gator Beer is concerned about protecting its unique beverage formula to prevent duplication

GATT is an acronym for ________.

General Agreement on Tariffs and Trade

According to the Chapter 1617 lecture, promotion encompasses all of the following components EXCEPT

Group selling

NAFTA has achieved all of the following EXCEPT

Increased FDI in culture in all members

Suppose that Company X's patented technology has been successful in the United States. Company X wants to enter the German market without significant commitment of financial and managerial resources. Along with reduced costs and risks, Company X wants to receive a fee for the use of its technology. Based on this information, Company X should entry Germany via:

International licensing

The ________ is an agreement to create a customs union among the governments of Argentina, Brazil, Paraguay, Venezuela, and Uruguay.

Mercosur Accord

______ has a larger GDP, but ______'s economy and exports are growing faster.

Mercosur; the PA

_____ motivations are those that push a firm into foreign markets because opportunities decrease in the domestic market.

Reactive

To which African economic organization does South Africa belong?

Southern African Development Community

All of the following are advantages of international licensing EXCEPT

Stolen technology

Which governing institution is the EU's most powerful decisionmaking body?

The Council of European Union

What institution preceded the WTO?

The General Agreement on Tariffs and Trade

An American toy manufacturer is thinking of expanding either to Japan or China. If it chooses to expand to China, which of the following would be a direct potential cost of business?

The cost of building a new plant in China

Which of the following is a consequence of good public relations?

The firm will be viewed as a good corporate citizen

Services have all of the following characteristics EXCEPT

They don't have associated products

All of the following are characteristics of international services EXCEPT

They don't require customer participation

Why has the U.S. trade deficit with NAFTA increased in absolute, but not percentage, terms?

Trade overall has expanded; relative proportions have remained more or less the same

The 12 member countries became known as the European Union when the ________ was signed in 1993.

Treaty of Maastricht

What agreement established the European Economic Community?

Treaty of Rome

Which WTO member has been involved in the most disputes in the last 20 years?

US

The GATT was replaced by the ________

WTO

What organization replaced the GATT?

World Trade Organization

All of the following companies were harmed by inaccurate market assessments EXCEPT

Yum! Brands

Suppose Tesla, a U.S. car manufacturer, buys a production facility in Vietnam. Which term best describes Tesla's activities?

acquisition strategy

When British Petroleum ships crude oil from its storage facilities in Kuwait to its Australian subsidiary, ________ has occurred.

an intracorporate transfer

When German chemicals company BASF ships sodium carbonate from its storage facilities in Poland to its subsidiary in Italy, _____ has occurred.

an intracorporate transfer

Services differ from goods because they

are intangible

Carmichael Candies, a U.S. firm, is considering the idea of entering the EU market through an international franchising agreement. What is the MAIN advantage to Carmichael if the firm chooses this entry method?

avoidance of tariffs

Carmichael Candies, a U.S. firm, is considering the idea of entering the EU market through an international franchising agreement. What is the MAIN advantage to Carmichael if the firm chooses this entry method?

avoidance of tariffs

Which of the following products is LEAST likely to be customized?

bulldozer

Juanita recently purchased an FDX Computer. She needs assistance setting it up and contacts the firm's customer-service center, which is located in Bangalore, India. FDX Computer most likely engages in which of the following?

business process outsourcing

Juanita recently purchased an FDX Computer. She needs assistance setting it up and contacts the firm's customerservice center, which is located in Bangalore, India. FDX Computer most likely engages in which of the following?

business process outsourcing

In a(n) ________, members eliminate internal trade barriers, adopt a common external policy toward nonmembers, and eliminate barriers to the movement of the factors of production.

common market

General Mills and Nestlé created a joint venture that fully integrated all the efforts necessary to compete against Kellogg in the European cereal market. This is an example of a(n) ________ alliance.

comprehensive

According to the Chapter 12 lecture, in what industry/industries are turnkey projects likely to be used?

construction

According to Chapter 16 in Pustay and Griffin, advertising strategy includes all of the following decision factors EXCEPT

cost

All of the following EXCEPT _______ are legal forces that may affect the extent of product customization.

cultural preferences

A(n) ________ combines the elimination of internal trade barriers among member countries with the adoption of common external trade policies toward nonmembers.

customs union

In a(n) _____, members eliminate internal trade barriers and adopt a common external policy toward nonmembers.

customs union

_______ can be used to determine overall potential growth and future business opportunities in a market.

demographic data

Suppose your company is considering exporting to a new market and needs to determine whether it should sell a basic or luxury version of its product there. Data on all of the following EXCEPT _____ would best help answer that question.

demographic trends

The distribution channel with the shortest length is

direct sales

According to the Chapter 1617 lecture, all of the following are international distribution strategies EXCEPT

domestic distributor

In a(n) ________ members eliminate internal trade barriers, adopt a common external policy toward nonmembers, eliminate barriers to the movement of the factors of production, and coordinate economic policies.

economic union

Burger King has established a franchise agreement with an individual in Tokyo. Burger King will most likely provide the Japanese franchisee with all of the following EXCEPT ________.

financial capital

Burger King has established a franchise agreement with an individual in Tokyo. Burger King will most likely provide the Japanese franchisee with all of the following EXCEPT ________.

financial capital

All of the following are international distribution strategies EXCEPT

foreign-country methods

Executives at Bantam Bicycles realize that the firm lacks the necessary internal resources to compete internationally. Which of the following would most likely enable Bantam to compete in the global market?

forming a strategic alliance

The extent of product customization varies according to all the following factors EXCEPT

generic brands

Comtex, a U.S. clock manufacturer, recently built a new production facility in Bangladesh. Which term best describes the activities of Comtex?

greenfield strategy

Promotion encompasses all of the following components EXCEPT

group selling

Flying Biscuit Café, an American restaurant, wants to enter the Latin American market through an international franchising agreement. All of the following are advantages to Flying Biscuit of using this mode of entry EXCEPT

increasing profits from shared revenues

What is the most likely result of a new continentwide freetrade agreement in Africa?

increasing trade and decreasing consumer prices

What is the term used to describe when a firm sells its product to a domestic customer, which in turn exports the product, in either its original form or a modified form?

indirect exporting

When Hewlett-Packard buys microchips from Intel to use in manufacturing computers and then exports the completed computers to Europe, ________ has occurred.

indirect exporting of intel's chips

A comprehensive alliance is formed when two or more firms ________.

integrate different operating procedures to bring goods or services to the market

________ advantages are advantages that make it desirable for a firm to produce a good/service itself rather than contract out to another firm to produce it.

internalization

A ________ is a special type of strategic alliance in which two or more firms join together to create a new business entity that is legally separate and distinct from its parents.

joint venture

Through a strategic alliance, a firm can

learn to produce a new good or service acquire more financial resources use their partner's knowledge and connections to better handle government regulations

The Nintendo Company manufactures electronic video consoles and game cartridges. Nintendo provides game-design firms with technical specifications for how Nintendo consoles function. The game-design firms create the games and then pay Nintendo a fee to manufacture those games. What mode of entry is described in this example?

licensing

In Africa, CocaCola has been successful at selling its products by using individual vendors across the continent. Which distribution strategy is this?

localmarket systems

All of the following are advantages of contract manufacturing EXCEPT

loss of control

IMAX, the entertainment firm, recently entered into a joint venture with Wanda Cinema Line, a Chinese theater chain. What was IMAX primarily seeking by forming this arrangement?

making entry into the Chinese market easier

A(n) ________ alliance occurs when partners share expertise or services related to distribution, pricing, and communications.

marketing

The Japanese company Bandai and the U.S. toymaker Mattel entered into a strategic alliance. Bandai agreed to distribute Mattel products like Barbie dolls in Japan while Mattel agreed to distribute Power Rangers in Latin America. What type of alliance is this an example of?

marketing

All of the following are AsiaPacific Trade Blocs EXCEPT

mercosur

The ________ requires that any preferential treatment granted to one country must be extended to all countries.

most-favored-nation principle

Proctor & Gamble is entering a new market and determines that the country has a high illiteracy rate. Given this information, which medium should P&G avoid using for its advertising campaign?

newspapers

During the Clinton administration, the "mostfavorednation" principle was changed to ______.

normal trade relations

What is the primary reason that strategic alliances fail?

partner incompatibilityy

Which category of promotion allows close contact with the customer but is expensive and reaches customers only within a small region?

personal selling

China's middle class is growing fast and developing a taste for foreign goods, especially specialty cheeses. As a result, Fromage de France, based in Bordeaux, France, has recently become very popular in China. FdF's cheeses have a very short shelf life, meaning they need to be consumed within a week after being produced. In addition, FdF's market research team has determined that Chinese consumers will pay a premium to buy its specialty product. Given these factors, which distribution method will Fromage de France most likely choose to bring its product to the Chinese market?

plane

The highest level of economic integration is

political union

The extent of product customization varies according to all the following factors EXCEPT

popularity

Which of the following products is most likely to be customized?

potato chips

Which of the following is NOT a cultural influence on products?

price

All of the following are management considerations specific to international service operations EXCEPT

price planning

________ are those that pull a firm into foreign markets as a result of opportunities available there.

proactive motivations

Avia Battery and Simon Battery both manufacture batteries in a shared facility. The two firms have most likely established a(n) ________ alliance.

production

According to the Stratfor video about the TPP, what issue is a major concern as the U.S. negotiates with its Asian counterparts?

protection of intellectual property

Micron Technology, Intel, Samsung, Hyundai, and Siemens have formed an alliance to develop the next generation of DRAM chips. This an example of what type of alliance?

research and development

Gator, Inc., produces painted, life-size aluminum alligators. These alligators have recently become very popular in Japan, and the company needs a low-cost way to ship its product overseas. Choosing airplane distribution has the advantage of being _____ and disadvantage of being ______. Choosing ship distribution has the advantage of being _______ and disadvantage of being ______.

safe; costly; cheap; slow

Which of the following comprises specialized marketing efforts such as coupons, instore promotions, sampling, directmail campaigns, cooperative advertising, and trade fair attendance?

sales promotion

According to the UNCTAD World Investment report, the majority of greenfield FDI projects are in the ____ sector.

services

What accounts for almost 75% of U.S. GDP?

services

. ______ account for almost ______ of U.S. GDP

services; 75%

Boeing collaborated in a strategic alliance with Fuji, Mitsubishi, and Kawasaki in the development and production of the Boeing 777 to minimize Boeing's financial exposure. What benefit of strategic alliances was Boeing seeking?

shared risk

Gator, Inc., produces painted, life-size aluminum alligators. These alligators have recently become very popular in Japan, and the company needs a low-cost way to ship its product overseas. What distribution method will Gator, Inc., most likely choose?

ship

Which of the following products is most likely to be customized?

soap

The Mitsubishi Corporation is a firm that is directly engaged in importing and exporting a wide variety of goods for its own account and is a part of a keiretsu system. What type of export intermediary is it? A) export management company

sogo shosha

The Mitsubishi Corporation is a firm that is directly engaged in importing and exporting a wide variety of goods for its own account and is a part of a keiretsu system. What type of export intermediary is it?

sogo shosha

Which of the following is NOT a potential risk of entering a foreign market?

synergy

The extent of product customization varies according to all the following factors EXCEPT

target governments

All of the following are African free-trade agreements EXCEPT

the african union

Which EU institution is the most powerful decision-making body?

the council of european union

According to the Chapter 10 lecture, which of the following pose(s) challenges to the EU's future?

the large percentage of the EU budget spent on the Common Agricultural Policy

What agreement triggered the establishment of the European Economic Community?

treaty of rome

Because customer participation is often required when services are purchased, services must often be customized to meet buyers' needs.

true

Because customer participation is often required when services are purchased, services must often be customized to meet buyers' needs.

true

Due to a supply glut, analysts expect to see an increasing number of mergers in the global shipping industry.

true

When choosing a method of international distribution, firms must weigh the tradeoff between time and money.

true


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