Deck 8: Global Marketing

Question 1

Licensing is an arrangement allowing a foreign manufacturer to use the designs,patents,or trademarks of the licenser.

Answer 1

True

Question 2

Many small companies use government services in conjunction with other strategies to build their international exposure on a limited budget.

Answer 2

True

Question 3

The purpose of the Export Development Corporation is to encourage Canadian businesses to sell overseas.

Answer 3

True

Question 4

FITT is a not-for-profit organization offering training programs about foreign trade to business people.

Question 5

Export agents assume the risk of loss once they receive the goods from the manufacturer.

Question 6

Despite minor differences,trading systems and import requirements across countries are essentially similar.

Question 7

Difficulty in getting trade information is often mentioned as one of the biggest barriers to small business exporting.

Question 8

The first step in researching a foreign market should involve finding a foreign company to partner with.

Question 9

A factoring house buys clients' accounts receivable and advances money to these clients.

Question 10

Although entrepreneurs have historically not prioritized international trade opportunities,in recent years there has been a surge of entrepreneurs seeking new business in foreign markets.

Question 11

Small Canadian firms focus global marketing efforts on developed countries rather than on emerging markets.

Question 12

DFATD provides information and reports on foreign countries and industries.

Question 13

Trade commissioners are available at DFATD trade centres for individualized export counselling.

Question 14

Because of financial institutions' participation in the collection process,letters of credit are essentially absolute guarantees of payment.

Question 15

Highly specialized products are particularly suited for international markets.

Question 16

The government is an invaluable resource for entrepreneurs seeking opportunities abroad.

Question 17

A foreign distributor is a merchant who sells merchandise from the domestic manufacturer at the greatest possible discount,and then re-buys it for a profit.

Question 18

Foreign-market research should begin with exhausting as many secondary sources of information as possible.

Question 19

A letter of credit may be revocable or irrevocable.

Question 20

The practice of licensing helps overcome trade barriers surrounding exporting because the product is produced in the foreign country.

Question 21

A Canadian manufacturer of winter wear introduces a Norwegian line of snowshoes by making an arrangement with a Norwegian company to use its process and brand.What kind of business arrangement did the Canadian manufacturer make with the Norwegian company?

A) strategic alliance
B) licensing
C) joint venture
D) franchising

Question 22

What entity buys clients' accounts receivable and advances money to the client?

A) receivables exporting house
B) financing house
C) forfeiting house
D) factoring house

Question 23

Your textbook describes a survey of more than 5,000 independent businesses regarding obstacles facing small firms entering international trade.According to the survey,what was the major obstacle?

A) obtaining adequate knowledge about exporting
B) identifying viable sales prospects abroad
C) understanding business protocols in other countries
D) selecting suitable target markets

Question 24

Rather than researching the customs,competition,and marketing trends of Argentina,Donna set up a retail store to sell her best-selling Canadian jams and spreads.What will Donna likely experience?

A) broken laws
B) lost domestic customers
C) reduced lines of credit
D) costly mistakes

Question 25

Patricia works with trade officials to help bring about agreements to facilitate trade and reduce trade barriers that restrict trade between countries.Who does Patricia most likely work for?

A) FTA
B) EU
C) WTO
D) GATT

Question 26

International markets should be left to large businesses because only they have the resources to conduct proper research.

Question 27

Mohammed has sold products to an overseas customer that wants to pay in 30 days.Mohammed wants to insure the customer's payment.What agency should Mohammed contact to arrange insurance coverage?

A) Canadian Commercial Corporation
B) Canada Revenue Agency
C) The Canadian Trade Commissioner Service
D) Export Development Corporation

Question 28

A Canadian technology firm has developed new biotech clothing to provide greater protection for lab technicians against airborne diseases.When should the company promote this product to overseas market?

A) very quickly so that foreign markets are part of the growth life cycle of the product
B) at the end of the domestic product life cycle to extend the life cycle
C) never because the domestic biotech industry is very large and growing
D) after all domestic opportunities have been explored

Question 29

A sales representative or agent is the equivalent of a manufacturer's representative at home.

Question 30

G-Nome Enterprises exports its equipment.In 1989 the Free Trade Agreement was signed which enabled G-Nome to reduce its prices because tariffs were no longer charged on their exports.Which country is G-Nome likely from?

A) the United States or Canada
B) the United States or Mexico
C) England or the United States
D) Canada or England

Question 31

Candice sells organic pet food to fellow Canadian pet owners and wants to expand her business globally.Having no knowledge of or experience in foreign markets,what organization should Candice contact?

A) DFATD
B) GDFMC
C) DECTC
D) DITPS

Question 32

Infinity Products of Canada sells ornaments to an Italian direct mail retailer.The two companies enter into an agreement whereby the payment for the ornaments will be released to Infinity Products when the Italian retailer confirms receipt of the shipment.What agreement did the two companies entire into?

A) negotiable instrument
B) forfeiting agreement
C) letter of credit
D) factoring agreement

Question 33

Peak Inc.,a producer of energy drinks,signed an agreement that authorizes an Italian firm to use the designs,patents,and trademarks of Peak Inc.to market the product in Italy.What kind of agreement do the two firms have?

A) international contracting
B) joint venturing
C) joint contracting
D) licensing

Question 34

What is often considered the biggest barrier to small business exporting?

A) getting trade information and finding foreign customers
B) finding foreign customers and arranging financing
C) getting trade information and arranging financing
D) arranging financing and finding intermediaries

Question 35

Why do small Canadian firms pursue global marketing relatively quickly compared to previous years?

A) It is too difficult and complex to become involved in domestic marketing.
B) Foreign markets provide opportunities to expand domestic markets.
C) Pursuing global trade gives firms an edge of competition.
D) Domestic avenues have been exhausted.

Question 36

China Tennis Inc.purchased a container of tennis balls from a Canada Sport Manufacturing Inc.China Tennis re-packaged the balls into cylinders each holding three balls and sold them to different sporting goods companies in Asia with the China Tennis logo on the cylinders.What kind of company is China Tennis?

A) export agent
B) export management company
C) commission agent
D) export merchant

Question 37

Anthony has a successful chain of organic food carts in his country.He is just beginning to research the feasibility of expanding into the U.S.market.What should Anthony do first?

A) perform focus group interviews
B) conduct a new,specific market study
C) consult the foreign market's embassy
D) consult secondary information

Question 38

Products introduced in the home country are taking longer to be introduced in global markets because of a lack of knowledge about incomes and cultural differences.

Question 39

The owner of a Canadian company feels she has saturated the Canadian market.She wants to expand overseas in the simplest and fastest way.What strategy should she use to expand internationally?

A) exporting
B) licensing
C) entering into a joint venture
D) selling directly to the end user

Question 40

A company sells its accounts receivable to another company so that it could have sufficient cash to pay for a trade show it wants to participate in.Which term refers to the company that purchased the receivables?

A) commercial paper broker
B) commercial clearing house
C) forfeiting house
D) factoring house

Question 41

Compare past and present globalization strategies to target countries.

Question 42

What entity is organized specifically to facilitate the exporting of goods and services produced in Canada?

A) Small Business Development Corporation
B) Canadian Development Corporation
C) Financing Development Corporation
D) Export Development Corporation

Question 43

Typically,small firms begin the international process using a lower risk approach.List the lowest two methods to operate in the global environment and explain why they are considered low risk.

Question 44

Maple Leaf Syrup of Canada wants to expand its brand so that it is as recognized in foreign markets as it is in Canada.However,Maple Leaf does not have the budget to physically set up offices abroad.What kind of arrangement should Maple Leaf pursue?

A) international contract
B) joint venture
C) joint contract
D) licensing

Question 45

Discuss how the purpose of global marketing has changed since the mid-1960s to the present day.

Question 46

List several sources of information and financial assistance for small business exporting.

Question 47

What is the purpose of the Export Development Corporation?

A) to arrange freight from Canadian borders into international markets
B) to grant licences of Canadian inventions to foreign manufacturers
C) to restrict finances so that Canadian banking laws are followed in overseas transactions
D) to encourage Canadian companies to export

Question 48

What department an overview of major federal export programs and contact points for export assistance?

A) Department of Foreign Affairs,Trade and Development Canada
B) Global Department,Foreign Markets Canada
C) Department of Export,Customs and Tariffs Canada
D) Department of International Trade,Products and Services Canada

Question 49

Prior to 1989,Canadian companies paid duties of 15 percent on raw materials imported from a U.S.manufacturer.After 1989 the duties were no longer charged on these imported products.What eliminated the duties in 1989?

A) Free Trade Agreement
B) International Trade Agreement
C) North Americas International Tariff Agreement
D) North American Free Trade Agreement

Question 50

List some of the secondary sources of information about foreign markets.

Question 51

Flashy Ties Inc.of Canada offers its best discounted price to a Peruvian reseller to expand their global market.What is the Peruvian reseller?

A) foreign distributor
B) foreign sales agent
C) foreign retailer
D) foreign export agent

Question 52

Boothe Inc.'s business advisors suggest that they should immediately pursue foreign markets because the domestic market may be limited.What type of product does Boothe most likely sell?

A) products that require technology that is no longer supported
B) highly specialized products
C) products that do not suit the domestic market's cultural mix
D) products considered dangerous in the domestic market

Question 53

What is a major obstacle faced by businesses entering international markets?

A) having a large enough business
B) visiting the foreign market personally
C) understanding foreign business protocol
D) finding sources of information or financial aid

Question 54

Describe two of EDC's several programs designed to help small exporters.