Deck 16: Global Marketing

Question 1

Forestry products are one of Canada's largest export items.

Answer 1

True

Question 2

A Canadian company may consider pursuing foreign markets because of domestic market saturation.

Answer 2

True

Question 3

Historically, Canada's strong dollar contributed significantly to its negative trade balance in those years.

Answer 3

False

Question 4

The Asia-Pacific region represents significant opportunities for a North American company considering going global.

Question 5

KFC's success in China, Taiwan, South Korea, and Japan is a good example of a mature industry in North America having success in developing markets overseas.

Question 6

Japan is a good example of a government-controlled economy.

Question 7

In market-controlled economies, effective marketing strategies are essential.

Question 8

Segmenting markets on the basis of culture is important in global marketing.

Question 9

The U.S. government does not allow the import of Cuban cigars. This is a good example of a boycott.

Question 10

NAFTA, the free trade agreement between Mexico, Canada, and the United States, is an example of an orderly market agreement.

Question 11

When students from American and British universities refused to buy Fruit of the Loom products because of their alleged "sweatshop"practices in the Honduras, they placed an embargo on Fruit of the Loom.

Question 12

Canada imports toys from Asia produced at a much lower cost than is possible at home. To balance the price difference between domestically produced and imported goods, Canada imposes a tariff on goods from Asia.

Question 13

A good example of how the political environment can impact global business is when a new government in India in the late 1970s ordered Coca-Cola to dilute its investment in its Indian subsidiary and turn over its secret formula.

Question 14

Language issues are rarely a barrier in a global marketing program.

Question 15

A quota is a trade barrier.

Question 16

Licensing is a permanent agreement.

Question 17

The quickest way for a foreign firm to enter a new country is to acquire a company that is active in that country.

Question 18

Contract manufacturing is generally more expensive than a joint venture arrangement with a foreign company.

Question 19

A company using direct exporting employs a middleman or trading company that specializes in international marketing.

Question 20

The Dove marketing campaign is an example of a global marketing strategy.

Question 21

A small company with limited financial resources is advised to develop its international markets through direct investments. This is because direct investment is a low-risk commitment.

Question 22

Starbucks in various countries is an example of a country-centred global marketing strategy.

Question 23

Coca-Cola's different formulas around the world shows that Coke uses a country-centred marketing strategy.

Question 24

The purpose of a trade barrier is to protect a country from too much foreign competition within its borders.

Question 25

Dove's campaign encouraging women to think differently about what is defined as beautiful is a good example of a country-centred global marketing strategy.

Question 26

Dumping is the practice of selling goods in a domestic market at a price lower than they are sold for in a foreign market.

Question 27

In direct exporting, a domestic firm uses domestic channels to distribute goods to final users in the foreign country.

Question 28

Adapting a product to local tastes and preferences is essential for a global fast-food company to be successful internationally.

Question 29

Canada's exports to foreign countries amounted to $521.3 billion in 2016.

Question 30

Pespi-Cola's campaign in Taiwan is an example of carefully considering language when entering a new global market.

Question 31

Lay's cucumber-flavoured chips in China and ketchup-flavoured chips in Canada represents the company understanding differing consumer needs and wants.

Question 32

Because it is a uniform geographic area, marketers can be comfortable with making generalizations about the Asia-Pacific region.

Question 33

Protectionism is a belief that foreign trade should be restricted so that domestic industry can be preserved.

Question 34

Yiha Kerry investments in China is responsible for managing supply chain, infrastructure, distribution, and providing local expertise on behalf of The Kellogg Company. This is an example of a joint venture.

Question 35

Because it is relatively inexpensive to do so, many companies implement new product development strategies when entering global markets.

Question 36

Canada's largest trading partner is

A) the United Kingdom.
B) Germany.
C) Russia.
D) Japan.
E) the United States.

Question 37

One reason many prominent companies are looking to expand into foreign countries is because

A) growth potential is exhausted domestically.
B) legislation governing competition is less restrictive.
C) this type of expansion is the best way to improve corporate image.
D) the quality of domestic labour is declining.
E) consumer behaviour in domestic markets is changing so rapidly.

Question 38

Aldo Group Inc. is the most successful shoe company in the world. Which country does this company come from?

A) the United Kingdom
B) France
C) the United States
D) Germany
E) Canada

Question 39

Which of the following is true of Canada's trade situation?

A) Historically, Canada has had a positive trade balance.
B) Canada has a trade deficit with the United States.
C) Our single largest trading partner is China.
D) The growing automotive sector will soon surpass agriculture as our leading export industry.
E) Agricultural exports represent the bulk of Canada's trade.

Question 40

Which of the following products are Canada's main exports?

A) electronic computers, petroleum, water, electricity, and semi-conductors
B) industrial goods and materials, machinery and equipment, energy products, and automotive products
C) lumber, telecommunications, water, and nickel
D) automotive parts, lumber, and wheat
E) lumber, water, nickel, and petroleum

Question 41

Canada's main imports include

A) telecommunications, petroleum, and pipeline gas.
B) motor vehicles and parts, industrial machinery, automotive products, energy products, and consumer goods.
C) cars, textiles, and petroleum products.
D) financial services, cars, and home entertainment products.
E) electronic computers, semi-conductors, and medical equipment.

Question 42

What has been the impact of the 2009 recession?

A) a positive trade balance
B) accelerated economic recovery
C) a stabilized Canadian economy
D) impacted tariffs on the deficit
E) a negative international trade balance

Question 43

Which global region is attractive to North American marketing organizations?

A) European Union
B) Asia-Pacific
C) Russia
D) South America
E) Central Asia

Question 44

NAFTA

A) set a fixed rate of exchange for the Japanese yen and the U.S. dollar.
B) established a framework for bilateral free trade between Canada and the United States providing for the phase out of trade barriers over 10 years.
C) encourages open trade between Canada, the United States, and Mexico.
D) has its roots in Europe.
E) reduced trading barriers and paved the way for full economic integration in Europe.

Question 45

Presently, the United States represents ________ of Canada's imports.

A) 50%
B) 25%
C) 40%
D) 75%
E) 66%

Question 46

Which of the following is one of the most tightly government-controlled economies?

A) South Korea
B) Cuba
C) Taiwan
D) Russia
E) Japan

Question 47

NAFTA is a trilateral agreement involving Canada, the United States, and

A) Mexico.
B) Australia.
C) Britain.
D) Europe.
E) South America.

Question 48

Which type of economy is the most competitive from a marketing perspective?

A) mixed economy
B) market-controlled economy
C) government-controlled economy
D) monarchy
E) dictatorship

Question 49

Which of the following global product strategies is most costly for a marketing organization?

A) adapting
B) standardization
C) developing new products
D) globalization
E) franchising

Question 50

The value of the Canadian dollar in relation to the U.S. dollar has

A) no impact on demand for Canadian goods globally.
B) no relation to the demand for Canadian goods in the United States.
C) an effect on the global demand for U.S. products.
D) a seasonal effect on the stock market.
E) a definite impact on the demand for Canadian goods.

Question 51

PepsiCo is realizing great success in China. The Chinese are eager to indulge in PepsiCo brands such as Lay's, Tropicana, and Quaker that North Americans take for granted. Why is PepsiCo successful in China?

A) Manufacturing and labour are cheaper in China so the company was able to reduce prices.
B) PepsiCo is an expert at putting global needs before needs of a local culture.
C) American foods are a staple of the Chinese diet.
D) PepsiCo adapted the taste of its products to Chinese preferences.
E) The advertising campaigns associated with the launch of these brands were successful.

Question 52

In assessing the consumer environment in a foreign market, a company should review

A) legal restrictions.
B) consumer needs and motivation, language, and culture.
C) packaging regulations.
D) the infrastructure.
E) political stability.

Question 53

If a company is to be successful in a foreign country, marketing communications must be

A) adapted to local customs and preferences.
B) simplified.
C) limited to images.
D) global in nature.
E) mainly based on mass media usage.

Question 54

The most obvious barrier to a global marketing program is

A) religious beliefs.
B) language.
C) legal restrictions.
D) culture.
E) product usage.

Question 55

The belief that foreign trade should be restricted so that domestic industries can be preserved is called

A) rationalization.
B) nationalization.
C) protectionism.
D) patriotism.
E) socialism.

Question 56

Tariffs

A) are taxes on imported goods.
B) set specific limits on the amount of goods that can enter a country.
C) are the same as quotas.
D) are taxes on exported goods.
E) are not industry specific.

Question 57

What is the term for a regulation that disallows entry of specified products into a country?

A) boycott
B) tariff
C) quota
D) local content law
E) embargo

Question 58

A specific limit on the amount of goods that may be imported into a country is a(n)

A) embargo.
B) quota.
C) cartel.
D) trade limit.
E) boycott.

Question 59

What is the term for a non-governmental organization voluntarily refusing to buy from a specific country or company?

A) embargo
B) boycott
C) blockage
D) cartel
E) action

Question 60

Which of the following is the best example of how political environment in a foreign country can shape trading policy and have a dramatic impact on a company's profitability?

A) McDonald's in China
B) Coke in China
C) Pizza Hut in China
D) Pepsi in India
E) Coca-Cola in India

Question 61

Nike learned through market research that Canadians did not identify strongly with the Nike brand and embarked on a sponsorship program of Canadian sports teams to endear themselves to Canadian consumers. What kind of strategy was this?

A) country centred
B) consumer
C) head-on
D) market skimming
E) global marketing

Question 62

When Procter & Gamble marketed Camay soap in Japan, their advertising featured a man intruding on a woman when she was bathing. This behaviour constitutes bad manners in Japan. Procter & Gamble overlooked what factor in this situation?

A) language nuances
B) universal gender issues
C) consumer needs and motivations
D) universal etiquette rules
E) cultural differences

Question 63

Restricting the number of imports of foreign-produced cars into Canada is an example of

A) protectionism.
B) restricted trade.
C) a boycott.
D) a cartel.
E) a tariff.

Question 64

In the late 1980s, Japanese automobile producers could only export a certain number of automobiles to Canada. They therefore built Canadian production facilities to try and circumvent the

A) taxes.
B) tariffs.
C) boycott.
D) embargo.
E) quotas.

Question 65

Which of the following organizations is a cartel?

A) NAFTA
B) De Beers Diamonds
C) WTO
D) OPEC
E) the Canadian lumber industry

Question 66

Which of the following is an example of an orderly market agreement?

A) OPEC
B) trade in the United States
C) NAFTA
D) NATO
E) the European Union

Question 67

The European Union has evolved into what type of trading agreement?

A) highly competitive
B) non-tariff zone
C) common market
D) free trade agreement
E) orderly market agreement

Question 68

U.S.-made food products sold in Canada have a nutritional label glued over the label printed on the packaging. What kind of global environmental issue is this?

A) technological
B) political
C) protectionist
D) infrastructure
E) regulatory

Question 69

A ________ is a group of firms or countries that band together to conduct trade in a manner similar to a monopoly.

A) marketing organization
B) trade pact
C) common market
D) government
E) cartel

Question 70

A ________ protects a country from too much foreign competition within its borders.

A) boycott campaign
B) common market
C) trade barrier
D) market segmentation
E) cartel group

Question 71

A tax or duty imposed on imported goods is called

A) an embargo.
B) a boycott.
C) a local contract law.
D) a tariff.
E) a quota.

Question 72

Historically, many Americans have come to Canada to purchase and consume Cuban cigars because of ________ preventing cigars from entering the United States from Cuba.

A) a quota
B) a trade resistance
C) a boycott
D) a tariff
E) an embargo

Question 73

What did several international organizations do in response to Canada's slaughter of seals?

A) organize a cartel of Canadian fish and seafood products
B) organize an embargo of all Canadian goods
C) set higher tariffs on Canadian imports
D) boycotted Canadian fish and seafood products
E) set higher quotas on Canadian products

Question 74

Marketers are entering the Chinese market with a popular brand of children's clothing. Hoping to save money and ensure a consistent brand image on the global market, they are planning to use a standardized IMC plan throughout the world, including the Chinese market. What advice would you give in this situation?

A) The appeal of the North American brand will be reinforced by the standardized campaign.
B) The Chinese will be offended if the same campaign is not used.
C) IMC plans can be standardized successfully in nearly all markets of the world.
D) Brand image cannot be consistently delivered without standardization.
E) Marketing communications strategies must be adapted to local customs and preference.

Question 75

Volkswagen's Vento went over well in Germany, but in Italy it had people holding their noses. To them, Vento means "fart."Which important consideration of the consumer environment did Volkswagen overlook?

A) language
B) motivation
C) local content law
D) idiosyncratic needs
E) culture

Question 76

In a global context, a partnership between a domestic company and a foreign company is

A) a direct investment.
B) international franchising.
C) a cartel.
D) a common market.
E) a joint venture.

Question 77

A temporary agreement that allows a company to use a trademark, patent, or manufacturing process of another company is called

A) licensing.
B) exporting.
C) contract manufacturing.
D) joint venturing.
E) franchising.

Question 78

A mass merchant retailer is considering entry into a new international market. Its success to date has been due to economies of scale of having stores in every major country and distribution centres to support them. The retailer wants fast results in its new market and is willing to pay to get them. This business is most likely to use a(n) ________ strategy when entering its new market.

A) acquisition
B) indirect exporting
C) direct exporting
D) licensing
E) joint venture

Question 79

Nike manufactures many products in offshore locations because of lower labour costs. Nike is engaging in

A) licensing.
B) international franchising.
C) contract manufacturing.
D) joint venturing.
E) an orderly market agreement.

Question 80

Global Trading is a trading company that specializes in international marketing. A company employing this company is practising

A) international franchising.
B) licensing.
C) joint venturing.
D) contract manufacturing.
E) indirect exporting.