Deck 19: The Global Marketplace

Question 1

The ________ is a treaty designed to promote world trade by reducing tariffs and other international trade barriers.

A) WTO
B) GATT
C) EU
D) CAN
E) NAFTA

Answer 1

GATT

Question 2

The European Union and NAFTA (North American Free Trade Agreement)are examples of ________.

A) non-barrier zones
B) open economic areas
C) economic communities
D) barter organizations
E) world trade organizations

Answer 2

economic communities

Question 3

Which of the following is designed to help foster trade between nations?

A) tariffs
B) GATT
C) exchange controls
D) quotas
E) nontariff trade barriers

Answer 3

GATT

Question 4

Concluding in 1994,the Uruguay Round reduced trade barriers,set international standards for trade,and established the ________ to enforce GATT rules.

A) WTO
B) EU
C) NAFTA
D) CAFTA
E) CAN

Question 5

A ________ is one that,by operating in more than one country,gains marketing,production,research and development,and financial advantages that are not available to purely domestic competitors.

A) global firm
B) domestic firm
C) whole-channel view
D) direct investment
E) free trade zone

Question 6

As global trade is growing,global competition is ________.

A) leveling off
B) declining
C) erratic
D) intensifying
E) stabilizing

Question 7

________ is a group of nations organized to work toward common goals in the regulation of international trade.

A) A joint venture
B) A strategic marketing group
C) An economic community
D) A global firm
E) A multinational enterprise

Question 8

A(n)________ serves to limit the amount of foreign exchange and the exchange rate against other currencies.

A) trade system
B) tariff
C) quota
D) exchange control
E) tariff trade barrier

Question 9

________ industries are safe from foreign competition.

A) Most
B) Major
C) Few
D) NAFTA
E) European Union

Question 10

Which of the following reduced the world's merchandise tariffs by 30 percent,toughened international protection of copyrights and trademarks,and has been extended to cover trade in agriculture and a wide range of services?

A) GATT
B) EU
C) NAFTA
D) CAFTA
E) FTAA

Question 11

Economic communities are also known as ________.

A) global firms
B) free trade zones
C) management communities
D) production communities
E) open channels

Question 12

Bias against bids made by American companies is an example of a(n)________.

A) quota
B) tariff
C) boycott
D) non-tariff trade barrier
E) exchange control

Question 13

Which of the following economic communities is responsible for the adoption of the euro?

A) NAFTA
B) European Union
C) Euro-American Union
D) CAFTA
E) WTO

Question 14

Formed in 1957,the ________ set out to create a single European market by reducing barriers to the free flow of products,services,finances,and labor among member countries and developing policies on trade with nonmember nations.

A) Uruguay Round
B) European Union
C) European Organization
D) NAFTA
E) CAFTA

Question 15

A(n)________ is a limit on the amount of goods that an importing country will accept in certain product categories.

A) embargo
B) tariff
C) benchmark
D) quota
E) exchange control

Question 16

Of the following,a company should make which major decision about international marketing first?

A) deciding which markets to enter
B) deciding how to enter the market
C) deciding on the global marketing organization
D) deciding on the global marketing program
E) deciding on the global communication program

Question 17

There is concern that through the ________ lower barriers inside Europe will create only thicker outside walls.

A) European Union
B) Euro-Scandinavian Pact
C) Euro-American Union
D) Atlantic Free-Trade Area
E) General Agreement on Tariffs and Trade

Question 18

All of the following are major decisions a company faces in international marketing EXCEPT which one?

A) deciding which markets to enter
B) deciding how to enter the market
C) deciding how to set standardized prices
D) deciding on the global marketing program
E) deciding on the global marketing organization

Question 19

A(n)________ is a tax levied by a foreign government against certain imported products.

A) embargo
B) tariff
C) export
D) exchange control
E) quota

Question 20

Firms that play it safe and do not enter the global market are likely to lose their chances to enter other markets ________.

A) but protect themselves from competition at home
B) but gain a competitive edge against imports in their home markets
C) but successfully shield themselves from foreign competition
D) and risk losing their home markets
E) A and B

Question 21

All of the following are political-legal factors that should be considered when deciding whether to do business in a given country EXCEPT which one?

A) attitudes toward international buying
B) government bureaucracy
C) business norms
D) monetary regulations
E) political stability

Question 22

It is important to understand how business norms vary from country to country.For example,________ like to sit or stand very close to each other when they queue or talk business.

A) Americans
B) Japanese
C) Asians
D) Africans
E) Europeans

Question 23

Sellers might accept a ________,one whose removal from the country is restricted by the buyer's government,if they can buy other goods in that country that they need themselves or can sell elsewhere for a need currency.

A) blocked currency
B) counter-purchase
C) barter
D) buyback
E) tariff

Question 24

Formed in 2004 and formalized in 2008,________ makes up the largest trading block after NAFTA and the European Union.

A) CAFTA-DR
B) FTAA
C) UNASUR
D) MCAN
E) GATT

Question 25

In a(n)________,the vast majority of people engage in simple agriculture and consume most of their output.

A) raw material economy
B) subsistence economy
C) industrializing economy
D) emerging economy
E) industrial economy

Question 26

What is the name of the single agreement that created a market of 452 million people and has eliminated trade barriers and investment restrictions among the United States,Mexico,and Canada?

A) GATT
B) WTO
C) NAFTA
D) CAFTA
E) EU

Question 27

________ are major exporters of manufactured goods,services,and investment funds.They trade goods among themselves and export them to other types of economies for raw materials and semi-finished goods.

A) Material economies
B) Subsistent economies
C) Industrializing economies
D) Industrial economies
E) Developing economy

Question 28

The two key economic factors reflecting a country's attractiveness as a market are its industrial structure and its ________.

A) communication adaptation
B) nontariff trade barriers
C) exchange controls
D) income distribution
E) transportation systems

Question 29

Which of the following involves the direct exchange of goods and services?

A) cash transaction
B) compensation
C) buyback
D) blocked currency
E) barter

Question 30

In 2005,the ________ established a free trade zone between the United States and Costa Rica,the Dominican Republic,El Salvador,Guatemala,Honduras,and Nicaragua.

A) CAFTA
B) FTAA
C) CAN
D) NAFTA
E) EU

Question 31

Why might Asian businesspeople be offended by the typical bargaining tactics of American executives?

A) Asian businesspeople typically reject offers in face-to-face conversations.
B) Asian executives prefer to start business meetings with polite conversations.
C) American executives prefer to start business meetings with polite, personal conversations.
D) American executives tend to move closer to each other as they negotiate.
E) American executives tend to conduct tough bargaining through non-personal forms of communication.

Question 32

Industrializing economies do NOT include ________.

A) China
B) India
C) Brazil
D) Sweden
E) Any of the above.

Question 33

In a(n)________ economy,fast growth in manufacturing results in rapid overall economic growth.This type of economy typically has a new rich class and a small but growing middle class,both demanding new types of imported goods.

A) industrial
B) industrializing
C) materials exporting
D) subsistence
E) agrarian

Question 34

Of the following industrial structures,which presents few market opportunities?

A) subsistence
B) raw material exporting
C) industrializing
D) emerging
E) industrial

Question 35

In international trade,it is ideal if the buyer can pay in ________.

A) countertrade
B) the seller's currency
C) barter
D) buyback
E) counter-purchases

Question 36

In 1994,________ established a free trade zone among the United States,Canada,and Mexico.

A) GATT
B) WTO
C) NAFTA
D) EU
E) CAFTA

Question 37

All of the following are types of industrial structures EXCEPT?

A) subsistence economies
B) raw material exporting economies
C) marketing economies
D) industrializing economies
E) industrial economies

Question 38

Which of the following is an advantage created by the adoption of the euro?

A) Countries outside of Europe no longer face trade obstacles within Europe.
B) European countries with previously weak currencies are more attractive markets.
C) It has decreased the annual combined GDP.
D) A homogeneous European market has been created.
E) It is the last step necessary for the countries of Europe to act like a single entity.

Question 39

A(n)________ economy is poor in some ways but rich in one or more natural resources responsible for creating most of its exporting revenue.

A) industrial
B) industrializing
C) raw-material exporting
D) subsistence
E) agrarian

Question 40

Countries with ________ economies consist mostly of households with very low family incomes.

A) industrial
B) industrializing
C) service
D) technological
E) subsistence

Question 41

Of the following,which is the LEAST critical decision a company should make before going abroad?

A) what its international marketing objectives and policies are
B) what volume of foreign sales it wants
C) how many countries it wants to market in
D) how many people it wants to employ
E) what types of countries it wants to market in

Question 42

The simplest way to enter a foreign market is through ________.

A) joint venturing
B) direct investment
C) exporting
D) joint ownership
E) contract manufacturing

Question 43

Sellers may eventually move into ________,whereby they handle their own exports.The investment and risk are somewhat greater in this strategy.

A) direct exporting
B) embargo
C) product adaptation
D) indirect exporting
E) licensing

Question 44

Which of the following is a sociocultural factor that a company should consider before deciding to enter an international market?

A) political stability
B) population density
C) education
D) income distribution
E) consumer lifestyles, beliefs, and values

Question 45

________ ventures consist of one company joining forces with foreign investors to create a local business in which they share ownership and control.

A) Joint ownership
B) Licensing
C) Contract manufacturing
D) Management contracting
E) Indirect exporting

Question 46

Which of the following is an economic factor that a company should consider before deciding to enter an international market?

A) population size and growth
B) natural resources
C) cultural and social norms
D) political stability
E) climate

Question 47

All of the following are types of joint ventures EXCEPT ________.

A) licensing
B) contract manufacturing
C) joint ownership
D) direct investment
E) management contracting

Question 48

Hilton helps others run their hotels by exporting know-how services rather than products.This type of joint venture is known as ________.

A) contract manufacturing
B) licensing
C) management contracting
D) joint ownership
E) direct investment

Question 49

Which of the following is an example of how American culture is being exported to the world's countries?

A) the popularity of the Harry Potter series
B) teens in India watch MTV and ask their parents for more Westernized clothes
C) the success of "American Idol"
D) the increasing popularity of American football
E) the popularity of the Power Rangers

Question 50

All of the following are modes of entry that companies can use when they have decided to sell in a foreign country EXCEPT ________.

A) exporting
B) embargo
C) joint venturing
D) direct investment
E) licensing

Question 51

Demographic characteristics,geographic characteristics,economic factors,sociocultural factors,and political and legal factors all help a company ________.

A) determine a market's potential
B) determine a country's degree of globalization
C) evaluate its marketing objectives
D) evaluate its value delivery network
E) identify potential joint ventures

Question 52

When entering a foreign market,companies typically start with ________,working through independent intermediaries to sell products produced in the home country.

A) direct exporting
B) embargo
C) product adaptation
D) indirect exporting
E) licensing

Question 53

Coca-Cola markets internationally by ________ bottlers around the world for a fee or royalty and then supplying them with the syrups needed to produce Coke products.

A) contract manufacturing with
B) management contracting with
C) licensing
D) creating joint ownerships with
E) directly investing in

Question 54

Sears opened up department stores in Mexico and Spain,where it found qualified local manufacturers to produce many of the product it sells.This type of joint venture is known as ________.

A) joint ownership
B) licensing
C) management contracting
D) indirect exporting
E) contract manufacturing

Question 55

________ involves entering a foreign market by developing foreign-based assembly or manufacturing facilities.

A) Exporting
B) Direct investment
C) Joint venturing
D) Contract manufacturing
E) Direct exporting

Question 56

________ involves less investment because the firm does not require an overseas marketing organization or network.It also involves less risk.

A) Indirect exporting
B) Direct exporting
C) Joint venturing
D) Licensing
E) Contract manufacturing

Question 57

Which of the following is a political and legal factor that a company should consider before deciding to enter an international market?

A) monetary and trade regulations
B) transportation structure
C) population size and growth
D) industrial infrastructure
E) business norms and approaches

Question 58

Which type of business is LEAST likely to find it necessary to enter international markets in order to survive?

A) clothing manufacturers
B) food distributors
C) chain retailers
D) small, local businesses
E) automobile producers

Question 59

Through ________,an organization in the foreign market buys the right to use a company's manufacturing process,trademark,patent,trade secret,or other item of value.

A) indirect exporting
B) licensing
C) contract manufacturing
D) management contracting
E) joint ownership

Question 60

Which of the following is a factor that is likely to push a company to decide NOT to enter international markets?

A) The company's home market is stagnant.
B) The company would have to redesign its products.
C) The company needs to counterattack international competitors in their home markets.
D) Foreign markets present higher profit opportunities.
E) Global competitors have offered similar products at lower prices.

Question 61

India needs more imports of raw materials such as textiles,steel,and heavy machinery and fewer imports of finished textiles,paper products,and automobiles.India is most likely a(n)________ economy.

A) subsistence
B) emerging
C) raw material exporting
D) agrarian
E) industrializing

Question 62

________ means adjusting the marketing strategy and mix elements to each international target market.

A) Standardized global marketing
B) Global marketing mixing
C) Adapted global marketing
D) Communication adaptation
E) Whole channel viewing

Question 63

Kellogg ads in the United States promote the taste and nutrition of Kellogg's cereals versus competitors' brands.In France,where consumers drink little milk and eat little for breakfast,Kellogg's ads must convince consumers that cereals are a tasty and healthful breakfast.Kellogg is following what type of marketing strategy?

A) straight product extension
B) product adaptation
C) product invention
D) communication adaptation
E) straight communication extension

Question 64

Tin and copper are the main exports of Chile.It is most likely that Chile has a(n)________ economy.

A) subsistence
B) marketing
C) merchandise exporting
D) raw material exporting
E) industrializing

Question 65

All of the following are strategies for adapting product and marketing communications to a global market EXCEPT which one?

A) external extension
B) straight extension
C) communication adaptation
D) product adaptation
E) product invention

Question 66

The first link between the seller and the final buyer,________ move company products from points of production to the borders of countries within which they are sold.

A) channels between nations
B) channels within nations
C) whole-channel views
D) large-scale channels
E) global value deliveries

Question 67

The international company must take a ____________ of the problem of distributing products to final consumers.

A) whole-channel view
B) direct-distribution channel
C) large-scale channel
D) transportation network
E) global value delivery

Question 68

________ occurs when a company either charges less than its costs or less than it charges in its home market.

A) Price escalation
B) Dumping
C) Licensing
D) Straight product extension
E) Countertrade

Question 69

Nokia created dustproof keypads,crucial in dry,hot countries with many unpaved roads,such as India.This is an example of ________.

A) product invention
B) straight product extension
C) standard global marketing
D) communication adaptation
E) product adaptation

Question 70

Lower costs in the form of cheaper labor or raw materials,foreign government investment incentives,freight savings,and the opportunity to improve the company image are all factors that would likely lead a company to ________ in a foreign market.

A) use direct exporting
B) begin licensing
C) conduct management contracting
D) initiate joint ownerships
E) make a direct investment

Question 71

"Take the product as is and find customers for it" is the slogan for ________.

A) product strategy
B) product invention
C) adapted marketing
D) straight product extension
E) product adaptation

Question 72

In a(n)________,executives are trained in worldwide operations,not just domestic or international operations.

A) direct exporting company
B) joint venture
C) international division
D) international subsidiary
E) global organization

Question 73

________ means selling largely the same products and using the same marketing approaches worldwide.

A) Adapted global marketing
B) Global marketing mixing
C) Standardized global marketing
D) Export marketing
E) Multinational strategizing

Question 74

Growing Green is a company that markets organic and environmentally friendly gardening and landscaping supplies and equipment.Members of management at Growing Green are examining the policies of GATT,actions undertaken by the WTO,and the agreements made by NAFTA and the EU.In which stage of the international marketing process is Growing Green?

A) deciding whether to go global
B) deciding which markets to enter
C) deciding how to enter the market
D) deciding on the global marketing program
E) looking at the global marketing environment

Question 75

Regardless of how companies go about pricing their products,their foreign prices will probably be ________ their domestic prices.

A) the same as
B) lower than
C) higher than
D) competitive with
E) not comparable with

Question 76

China recently agreed to help the Democratic Republic of Congo develop $6 billion of desperately needed infrastructure-2,400 miles of roads,2,000 miles of railways,32 hospitals,145 health centers,and two universities-in exchange for natural resources needed to feed China's booming industries-10 million tons of copper and 400,000 tons of cobalt.This scenario is an example of which of the following?

A) cash transaction
B) compensation
C) buyback
D) blocked currency
E) barter

Question 77

A firm normally gets into international marketing by simply shipping out its goods.If its international sales expand,the company organizes a(n)________.

A) indirect exporting venture
B) joint ownership
C) export department
D) international division
E) standardized global marketing strategy

Question 78

World product groups,geographical organizations,and international subsidiaries are all options for organizing a(n)________.

A) export department
B) indirect exporting venture
C) joint ownership
D) international division
E) standardized global marketing strategy

Question 79

U.S.foreign policy makers have criticized China for protectionist regulations and other actions that are biased against U.S.company bids.This is an example of a(an)________.

A) non-tariff trade barrier
B) tariff
C) boycott
D) exchange control
E) quota

Question 80

Changing promotions for each local market is known as ________.

A) a straight extension
B) advertising depth
C) communication adaptation
D) product adaptation
E) standardized global marketing