Deck 2: Global, Ethical, and Sustainable Marketing

Question 1

Why would almost all Americans be considered participants in the global marketplace?

Answer 1

Almost all Americans regularly consume products imported from other countries-from produce to furniture to automobiles-or produced domestically by international companies.

Question 2

Which of the following is the first step a firm should take when deciding whether or not to go global?

A) Develop marketing mix strategies for foreign markets.
B) Analyze whether it is in the firm's best interest to focus on the domestic market or to expand to international markets.
C) Identify the most attractive global markets for the firm's products.
D) Select a market-entry strategy that fits the firm's desired level of commitment.
E) Identify potential partners in international markets.

Answer 2

B

Question 3

Azerbaijan imported wheat from Romania in exchange for crude oil and Vietnam exchanged rice for Philippine fertilizer and coconuts. Both scenarios are examples of which of the following?

A) convertible trade
B) tariffs
C) quotas
D) protectionism
E) countertrade

Answer 3

E

Question 4

The global economic crisis of 2009 had little effect on the volume of world trade in that year.

Question 5

Exporting products overseas is an example of ________.

A) countertrade
B) a market-entry strategy
C) a marketing mix strategy
D) fair trade
E) a convertible trade

Question 6

A(n) ________ is a group of countries that have agreed to coordinate trade policies and ease restrictions on the flow of products and capital across members' borders.

A) monopoly
B) free trade zone
C) economic community
D) oligopoly
E) economic infrastructure

Question 7

The purpose of an import quota is to ________.

A) eliminate competition for a nation's domestic industries
B) increase competition for a nation's domestic industries
C) reduce competition for a nation's domestic industries
D) make foreign competitors' goods less expensive than domestic goods
E) make foreign competitors' goods more expensive than domestic goods

Question 8

Describe the four steps a firm should take when it is considering going global.

Question 9

Which of the following statements about the World Trade Organization (WTO) is true?

A) The WTO is a branch of the U.S. government.
B) An essential function of the WTO is stabilizing international money exchange rates.
C) Only developed nations are granted membership into the WTO.
D) The WTO's main function is to help the least developed countries grow their economies.
E) The WTO is the only international organization that deals with the global rules of trade between nations.

Question 10

When a government adopts a policy of ________, it enforces rules on foreign firms in order to give home companies an advantage.

A) gray marketing
B) countertrade
C) monopolistic competition
D) economic sanctions
E) protectionism

Question 11

The purpose of a government-imposed ________ is to give domestic competitors an advantage in the marketplace by making foreign competitors' goods more expensive than domestic goods.

A) monopoly
B) quota
C) tariff
D) countertrade
E) embargo

Question 12

A(n) ________ is an extreme quota that completely prohibits commerce and trade with a specific country.

A) tariff
B) embargo
C) economic community
D) perfect monopoly
E) forex rate

Question 13

Management at Growing Green, a company that markets organic and environmentally friendly gardening and landscaping supplies and equipment, is evaluating the benefits and disadvantages of indirect exporting, direct exporting, and licensing. In which stage of the international marketing process is Growing Green?

A) deciding whether to go global
B) deciding which global markets are most attractive
C) deciding which market-entry strategy is best
D) deciding on the marketing mix strategies for foreign markets
E) deciding on the global marketing organization

Question 14

Which of the following countries is NOT a member of MERCOSUR?

A) Brazil
B) Paraguay
C) Bolivia
D) Uruguay
E) Venezuela

Question 15

The General Agreement on Tariffs and Trade (GATT) ________.

A) is composed of 10 developed nations who make trade decisions for all other countries
B) was created by the United States shortly after World War II
C) is an example of a regional economic community
D) led to the creation of the WTO
E) sets international import quotas

Question 16

Growing concern over the Greenhouse Effect is increasing pressure for development of a single marketplace with consistent environmental standards.

Question 17

A country that barters for imported products rather than paying in cash likely does so because its currency is convertible.

Question 18

Trading firms that work out elaborate deals in which they trade or barter their products with one another or even supply goods in return for tax breaks from the local government are using ________.

A) protectionism
B) competitive intelligence
C) gray marketing
D) countertrade
E) inflation

Question 19

________ refers to the total value of all the exports and imports of the world's nations.

A) Countertrade
B) International marketing
C) Gross national product
D) Gross domestic product
E) World trade

Question 20

Malaysia, Indonesia, Singapore, Thailand, and Cambodia are all members of ________.

A) Andean Community
B) ASEAN
C) MERCOSUR
D) NAFTA
E) APEC

Question 21

What is protectionism and why might a government adopt it as a policy? Explain how three examples of protectionism function.

Question 22

Marketers need to understand the ________ environment of a country from two perspectives: the overall level of development of a country and the current stage of its business cycle.

A) political and legal
B) sociocultural
C) economic
D) technological
E) natural

Question 23

Describe the function of the World Trade Organization (WTO) and explain how it originated.

Question 24

How might a nation's strict import quotas on particular products negatively affect consumers in that country?

Question 25

The U.S. government proposed a tariff against some Chinese textiles and clothing when the trade deficit with China reached $103 billion. Explain what the United States was trying to achieve through this action.

Question 26

Governments use tariffs to give domestic competitors an advantage in the marketplace by making foreign competitors' goods more expensive.

Question 27

Trusted Wholesalers is a company that purchases products produced in Mexico and sells them to companies based in the United States and Canada. Management at Trusted Wholesalers would most likely be interested in becoming experts in the agreements made by ________.

A) the EU
B) NAFTA
C) COMESA
D) SAARC
E) MERCOSUR

Question 28

The main pursuit of the World Trade Organization (WTO) is to guarantee basic human rights in all markets.

Question 29

NAFTA is a(n) ________.

A) South American economic community
B) common market for eastern and southern Africa
C) economic community that includes Peru, Brazil, and China
D) trade agreement that includes Canada, Mexico, and the United States
E) eastern European economic community that competes with the EU

Question 30

Which of the following is true of the global economy after the Great Recession of 2008-2009?

A) The global economy has not grown since the Great Recession of 2008-2009.
B) The global economy grew steadily but slowly from 2014 to 2016.
C) The economies of least developed countries have grown at the slowest rate of all countries.
D) The global economy has quickly rebounded and has experienced several years of fast-paced growth.
E) The economies of countries with higher incomes have grown at faster rates than the economies of least developed countries.

Question 31

Describe the function of an economic community and explain how its policies can be advantageous to marketers. Give two examples of important economic communities.

Question 32

U.S. sugar import quotas have existed for more than 50 years and preserve more than half of the U.S. sugar market for domestic producers. Why might the United States continue to have these quotas?

A) to reduce competition for its domestic sugar industry
B) to increase the cost of sugar
C) to control the supply and demand for sugar
D) to support a mass market for sugar
E) to improve the promotion of sugar

Question 33

Brexit refers to the planned exit of the U.K. from ________.

A) NAFTA
B) MERCOSUR
C) the EU
D) the WTO
E) GATT

Question 34

The goal of the World Bank is to improve economies and support sustainable development in order to reduce poverty and improve lives.

Question 35

The International Monetary Fund controls fluctuations in exchange rates in order to prevent severe balance of payments problems.

Question 36

Afghanistan, Bangladesh, India, and several other South Asian countries formed the SAARC economic community. This is an example of a policy of protectionism.

Question 37

Each industry sets import quotas for its products to determine yearly production volume.

Question 38

In 2018, the United States imposed a tax on imported steel and aluminum in an effort to protect U.S. jobs in these industries. Another name for this levied tax is a(n) ________.

A) embargo
B) gray tax
C) tariff
D) import quota
E) boycott

Question 39

The only member countries of the North American Free Trade Agreement (NAFTA) are the United States, Canada, and Mexico.

Question 40

U.S. sugar import quotas have existed for more than 50 years and preserve about half of the U.S. sugar market for domestic producers. These quotas are examples of ________.

A) embargoes
B) nationalization
C) protectionism
D) pirating
E) balance of payments

Question 41

Planet Fitness and Gold's Gym engage in ________ competition when they both try to attract customers to buy their fitness center services.

A) discretionary income
B) product
C) brand
D) monopolistic
E) oligopolistic

Question 42

Which of the following countries is NOT one of the largest developing or newly industrialized countries?

A) Brazil
B) Russia
C) India
D) Canada
E) China

Question 43

________ income is the amount of money an individual has left to spend after paying for necessities such as housing, utilities, food, and clothing.

A) Discretionary
B) Gross product
C) Standard of living
D) Inflationary
E) Per capita

Question 44

The United States, the United Kingdom, Canada, France, Italy, Germany, and Japan are all members of ________.

A) the BRICS countries
B) the G7
C) the EU
D) NAFTA
E) MERCOSUR

Question 45

A severe recession is a depression, a period in which prices fall but there is little demand because few people have money to spend and many are out of work. This condition is part of ________.

A) the microenvironment
B) the business cycle
C) the technological environment
D) the legal environment
E) social norms

Question 46

Through ________ competition, competitors offer different goods and services that attempt to satisfy the same consumers' needs and wants.

A) discretionary income
B) product
C) brand
D) monopolistic
E) oligopolistic

Question 47

Which of the following occurs when prices and the cost of living rise while money loses its purchasing power?

A) prosperity
B) recovery
C) inflation
D) deflation
E) depression

Question 48

In a(n) ________ structure, there are a relatively small number of sellers, each holding substantial market share, in a market with many buyers.

A) monopoly
B) oligopoly
C) monopolistic competition
D) perfect competition
E) natural competition

Question 49

Which of the following countries has the highest per capita GDP?

A) China
B) Japan
C) Russia
D) Qatar
E) United States

Question 50

In most cases, which of the following is true about a least developed country (LDC)?

A) It has an economy based on agriculture.
B) It is landlocked.
C) It has a viable middle class.
D) It has high literacy levels.
E) It has an advanced economic infrastructure.

Question 51

France, Italy, and Germany boast sophisticated marketing systems and are three good examples of ________.

A) preindustrial countries
B) least developed countries (LDCs)
C) developing countries
D) developed countries
E) BRICS countries

Question 52

When determining a country's ________, economists look at how the country is attempting to reduce poverty, inequality, and unemployment in addition to considering the country's GDP.

A) forex rate
B) competitive environment
C) economic infrastructure
D) level of economic development
E) purchasing power parity

Question 53

Which of the following best explains why marketers are attracted to the BRICS countries?

A) These countries have long-established upper classes that form a strong market for luxury goods.
B) These countries are quickly moving from being least developed to developing countries.
C) These countries have masses of consumers who are not yet wealthy but are quickly moving to economic prosperity.
D) These countries offer large markets with no language or cultural barriers.
E) These countries wield the most power in the G7.

Question 54

The ________ is the price of a nation's currency in terms of another currency.

A) gross domestic product (GDP)
B) inflation rate
C) import quota
D) purchasing power parity
E) foreign exchange rate

Question 55

The most commonly used measure of a country's economic health is the country's ________.

A) gross domestic product (GDP)
B) gross national product (GNP)
C) foreign exchange rate
D) cost of living
E) purchasing power parity (PPP)

Question 56

The quality of a country's distribution, financial, and communication systems is referred to as the country's ________.

A) level of economic development
B) standard of living
C) gross domestic product (GDP)
D) economic infrastructure
E) business cycle

Question 57

Which of the following measures is often a good indicator of a country's economic health because it is adjusted for the population size of each country?

A) per capita GDP (gross domestic product)
B) GDP (gross domestic product)
C) purchasing power parity
D) standard of living
E) inflation rate

Question 58

In a(n) ________ structure, one seller controls a market.

A) monopoly
B) oligopoly
C) monopolistic competition
D) perfect competition
E) natural competition

Question 59

A country's ________ indicates the average quality and quantity of goods and services consumed within the country.

A) economic infrastructure
B) standard of living
C) gross domestic product (GDP)
D) gross national product (GNP)
E) business cycle

Question 60

Through ________ activities, a firm gathers and analyzes publicly available information about rivals.

A) economic infrastructure
B) competitive intelligence
C) demographic
D) perfect competition
E) business cycle

Question 61

In a(n) ________ culture, people tend to attach more importance to personal goals than to the needs of the larger community.

A) collectivist
B) individualist
C) democratic
D) demographic
E) sociocultural

Question 62

The ________, a U.S. regulatory agency, enforces laws and regulations on foods, drugs, cosmetics, and veterinary products.

A) Food and Drug Administration
B) Environmental Protection Agency
C) Consumer Financial Protection Bureau
D) Federal Trade Commission
E) Consumer Product Safety Commission

Question 63

Consumer ________ is the belief that the products made in one's own country are superior to those from other countries.

A) nationalization
B) ethnocentrism
C) domestication
D) expropriation
E) democratization

Question 64

Expropriation occurs when a government ________.

A) reimburses a foreign company for its assets after taking over the company
B) reimburses a foreign company that has lost facilities due to natural causes
C) refuses to allow its businesses to engage in exporting
D) takes over a foreign operation and provides the seized operation with no reimbursement
E) imports more than it exports

Question 65

The ________ environment refers to the local, state, national, and global laws and regulations that affect businesses.

A) political and legal
B) sociocultural
C) economic
D) technological
E) natural

Question 66

Every society has a set of deeply held beliefs about right and wrong ways to live, which are referred to as ________.

A) demographics
B) social norms
C) cultural dimensions
D) cultural values
E) customs

Question 67

Nationalization occurs when a government ________.

A) reimburses a foreign company for its assets after taking over the company
B) reimburses a foreign company that has lost facilities due to natural causes
C) refuses to allow its businesses to engage in exporting
D) takes over a foreign operation and provides the seized operation with no reimbursement
E) imports more than it exports

Question 68

The ________ was established by the Federal Trade Commission in 2003 to allow consumers to limit the number of telemarketing calls they receive.

A) National Do Not Call Registry
B) Child Protection Act
C) Federal Communications Commission
D) Consumer Products Safety Commission Act
E) USA Freedom Act

Question 69

In a(n) ________ culture, people tend to subordinate their personal goals to those of a stable community.

A) collectivist
B) individualist
C) democratic
D) demographic
E) ethnocentric

Question 70

The use of drones or unmanned aerial vehicles to deliver packages to consumers' homes would represent a change in the ________.

A) sociocultural environment
B) economic environment
C) legal environment
D) technological environment
E) microenvironment

Question 71

In a(n) ________ structure, there are many sellers, each offering slightly different products and each having only a small share of the market.

A) monopoly
B) oligopoly
C) monopolistic competition
D) perfect competition
E) natural competition

Question 72

The ________ was developed to eliminate monopolies and to guarantee free competition.

A) Sherman Antitrust Act
B) Consumer Credit Protection Act
C) Robinson-Patman Act
D) Wheeler-Lea Amendment
E) Lanham Trademark Act

Question 73

Which of the following is a form of protectionism?

A) joint ventures
B) bribery
C) extortion
D) collectivism
E) local content rules

Question 74

In a(n) ________ structure, there are many small sellers, each offering similar products, and each unable to have a significant impact on the quality, price, or supply of a product.

A) monopoly
B) oligopoly
C) monopolistic competition
D) perfect competition
E) natural competition

Question 75

Specific rules that dictate what is acceptable or unacceptable within a society are referred to as ________.

A) demographics
B) cultural values
C) cultural dimensions
D) social norms
E) ethnocentric standards

Question 76

The ________ environment refers to the characteristics of a society, the people who live in the society, and the culture that reflects the values and beliefs of the society.

A) political and legal
B) sociocultural
C) economic
D) technological
E) natural

Question 77

The management team at Home Help, a consumer products manufacturer, is considering entering several different foreign markets and is in the process of analyzing each potential market's economic environment. Which of the following would best help the management team understand the typical quality and quantity of goods and services purchased in the country?

A) the inflation rate
B) the economic infrastructure
C) the per capita gross domestic product (GDP)
D) the standard of living
E) the gross domestic product (GDP)

Question 78

The ________, a U.S. regulatory agency, regulates telephone, radio, television, and the use of the Internet.

A) Consumer Product Safety Commission
B) Environmental Protection Agency
C) Federal Communications Commission
D) Federal Trade Commission
E) Interstate Commerce Commission

Question 79

Through the U.S. Generalized System of Preferences (GSP), developing countries may export goods duty-free to the United States if they ________.

A) demonstrate progress toward protecting the natural environment
B) demonstrate progress toward improving the rights of their workers
C) agree to exempt U.S. imports from local content rules
D) belong to the World Trade Organization (WTO)
E) refuse to participate in expropriation

Question 80

________ are statistics that measure aspects of population, such as size, age, and gender.

A) Demographics
B) Norms
C) Cultural dimensions
D) Standards
E) Mores