Deck 5: Developing a Global Vision

Question 1

A blog is a publicly accessible Web page that functions as an interactive journal,where readers can post comments on the author's entries.

Answer 1

True

Question 2

Which of the following stages in the development of multinationals is characterized by multinational firms setting up foreign subsidiaries to handle sales in a country?

A)Stage one
B)Stage two
C)Stage three
D)Stage four

Answer 2

B

Question 3

Which of the following is a difference between product invention and product adaptation?

A)Product invention involves altering the promotional strategies for a product,while product adaptation does not involve altering such strategies.
B)Product invention takes the marketing mix into consideration,while product adaptation does not take it into consideration.
C)Product invention involves drastically changing an existing product,while product adaptation involves slightly altering a basic product.
D)Product invention applies only to products that are displayed in local markets,while product adaptation applies to products all around the world.

Answer 3

C

Question 4

The solving of promotional and product problems guarantees global marketing success.

Question 5

Cost savings is considered a key driver for outsourcing by most companies.

Question 6

The final step in creating a marketing mix is developing a thorough understanding of the global target market.

Question 7

Gross national product (GNP)is the total market value of all final goods and services produced in a country for a given time period.

Question 8

Yuncen Foods,a company that manufactures frozen food,gets over half of its revenue from international sales.It has been consistently ranked the best frozen foods manufacturer in the world.It has catered its products to suit people in different countries according to their tastes and preferences.This shows that Yuncen Foods:

A)needs to increase its domestic sales.
B)has used inshoring to increase its profits and market share.
C)should invest in another product line to compete effectively in the market.
D)has a global vision that is paying off well.

Question 9

Global marketers use social media not only for understanding customers but also to build their brands as they expand internationally.

Question 10

In general,average family incomes are higher in the more developed countries than in the less developed countries.

Question 11

Joint ventures are successful,however they can be risky.This is because joint ventures:

A)consist of partners who sometimes cannot agree on management policies.
B)depend heavily on contract manufacturing.
C)are void of government interference.
D)are very different from licensing agreements.

Question 12

Firms seeking to enter into foreign trade can succeed even if they do not adhere to the principles of the marketing mix.

Question 13

In the context of direct foreign investment,direct investors have the lowest potential reward and the lowest potential risk.

Question 14

Because Facebook,YouTube,and other social media are popular around the world,firms both large and small have embraced social media marketing.

Question 15

Sinesia is a country that is famous for its vast deposits of cobalt,a material that is used to make high-speed and high-temperature cutting tools and dyes.A company that wants to manufacture tools for shaping steel would be most attracted to Sinesia's:

A)political structure.
B)cultural aspects.
C)natural resources.
D)demographic makeup.

Question 16

Caused by shifting birthrate trends,a demographic dividend often leads to rising labor costs.

Question 17

Opening an e-commerce site on the Internet makes it difficult for a company to gain recognition in the international marketplace.

Question 18

The surge in global trade in recent years has added to strains and charges for all forms of transport.

Question 19

A U.S.licensor will be most successful in maintaining effective control over licensees and preventing them from voiding its contract by:

A)using lawyers from both countries to write the licensing agreement.
B)insisting that all licensees have a published code of ethics.
C)not allowing the licensee to pay a fee for the use of proprietary knowledge.
D)locally registering patents and trademarks to the U.S.firm and not to the licensee.

Question 20

Franchising is a form of exporting.

Question 21

One of the factors in the external environment that has become more evident in the past decade is the:

A)decrease in the importance of language in foreign trade.
B)shortage of natural resources.
C)abundance of export brokers for major industries.
D)decrease in the working-age population of developing countries.

Question 22

Aztic Inc. ,a manufacturer of sports goods,plans to expand its operations to a new country.As part of this expansion,it determines whether the population of the country is primarily rural or urban.In this case,Aztic Inc.is assessing the__________of the country.

Question 23

Once marketing managers have determined a global product and promotion strategy,they can select the remainder of the marketing mix.However,entry into many developing nations presents special pricing problems because:

A)the rate of capital accumulation exceeds the rate of population growth.
B)there is always an expectation of countertrade by developing countries.
C)the demand for low quality products is very less compared to developed countries.
D)there is a lack of mass purchasing power.

Question 24

The__________is a trade agreement that has dramatically lowered trade barriers worldwide and also created the World Trade Organization.

Question 25

Melrow Inc. ,a U.S.firm,suffers heavy losses and lays off many of its employees.As a measure to reduce its manufacturing costs,it shifts its production units to another country where inexpensive labor is available.In this scenario,Melrow Inc.is engaged in__________.

Question 26

Which of the following is true of franchising?

A)It is a form of contract manufacturing.
B)It has grown rapidly in recent years.
C)It is restricted to the market of fast-food restaurants.
D)It requires an export agent and an export broker to be successful.

Question 27

Maria likes visiting different restaurants and trying out a variety of cuisines.She writes her experiences on a Web page,titled Maria's Experiences,which can be read by people all around the world.She also reviews restaurants,and members of her Web page are entitled to post their comments and suggestions.Based on this information,Maria's Experiences is an example of a(n)__________.

Question 28

Irving Inc. ,an apparel company,decides to expand operations to several countries around the world.However,it fails to take into account the various styles of clothing that are deemed acceptable in these countries.It sells the same clothes that it sells in its home country to the other countries.As a result,it suffers a major loss.In this scenario,Irving Inc.failed to be sensitive to the__________of the countries.

Question 29

D'Costas,an authentic Mexican restaurant,has many restaurants all over the world.The taste and authenticity of the food served is the same irrespective of the restaurant one visits.Based on this information,D'Costas follows the strategy of__________.

Question 30

Many people fear world trade because it:

A)closes the access to advanced technology for less developed countries.
B)slows down the rate at which people's living standards increase.
C)causes some people to lose their jobs due to production shifts abroad.
D)empowers governments to abuse the freedom and property of their citizens.

Question 31

A(n)__________is an intermediary who brings a buyer and a seller together.

Question 32

Which of the following is a similarity between export brokers and export agents?

A)Both act as hired purchasing agents for foreign customers operating in the exporter's home market.
B)Both live in foreign countries and assist in international trade.
C)Both assume all risks associated with selling a manufacturer's product in the international market.
D)Both allow manufacturers to retain title for products.

Question 33

In the context of global marketing,when a domestic firm buys part of a foreign company or joins with a foreign company to create a new entity,it is known as a__________.

Question 34

Which of the following is true of globalization?

A)It expands economic freedom and increases the living standards of people.
B)It relies on strong government regulations to keep down prices.
C)It fails to offer access to advanced technology in less developed countries.
D)It makes it easier for governments to abuse the freedom and property of their citizens.

Question 35

A(n)__________is a limit on the amount of a specific product that can enter a country.

Question 36

A company is said to be a direct foreign investor in another country if it:

A)outsources a part of its production to the country due to the availability of cheaper labor.
B)exports finished products to that country.
C)manufactures products for that country based on contract manufacturing.
D)acquires an active ownership of marketing facilities in that country.

Question 37

__________is a fast-growing way to conduct global business in which all or part of the payment for goods or services is in the form of other goods and services.

Question 38

__________is the largest Latin American trade agreement and includes Argentina,Bolivia,Brazil,Chile,Colombia,Ecuador,Paraguay,Peru,Uruguay,and Venezuela.

Question 39

The primary reason large U.S.companies send U.S.jobs abroad is because labor costs are higher in the United States.Such companies are said to be engaging in__________.

Question 40

A company is most likely doomed to failure in a foreign country if it__________.

Question 41

Khokho's Coffee House is the first to introduce flavored coffee in the global market.It sells coffee in several different flavors,such as blueberry,cinnamon,and cranberry,based on the popular flavors in each country.Based on this information,Khokho's Coffee House uses__________to market its products.

Question 42

Write a note on the economic factors that influence the external business environment.

Question 43

​Melrow Inc. ,a U.S.firm,suffers heavy losses and lays off many of its employees.As a measure to reduce its manufacturing costs,it shifts its production units to another country where inexpensive labor is available.In this scenario,Melrow Inc.is engaged in _____.

A)licensing
B)​outsourcing
C)​franchising
D)inshoring

Question 44

Fashion Spell,an apparel store,has a page on Facebook through which it interacts with its customers.It encourages customers to post comments about the store and give feedback.It also holds a lucky draw competition every week and the winner receives a gift voucher from Fashion Spell.Given this information,Fashion Spell uses__________to increase its customer base.

Question 45

What are the benefits of globalization?

Question 46

Why do firms that enter into foreign trade need to adhere to the principles of the marketing mix?

Question 47

Vimonland Theme Park sells the necessary rights to an investment company to run a Vimonland theme park in a foreign country.The investment company gains most of the profits from the enterprise while paying Vimonland Theme Park a percentage as royalties.This is an example of__________.

Question 48

__________is the sale of an exported product at a price lower than that charged for the same or a like product in the "home" market of the exporter.

Question 49

Explain with an example the major role played by social media in global marketing.

Question 50

​The practice of returning production jobs to the United States is known as _____.

A)outsourcing
B)​international franchising
C)​licensing
D)inshoring

Question 51

​The primary reason large U.S.companies send U.S.jobs abroad is because labor costs are higher in the United States.Such companies are said to be engaging in _____.

A)employee export
B)​outsourcing
C)​inshoring
D)joint ventures

Question 52

D Feet Corp.manufactures its footwear in a small town in America,but it sells to several countries around the world.Given this information,D Feet Corp.can best be characterized as a__________multinational corporation.

Question 53

__________are trade alliances in which several countries agree to work together to form a common trade area that enhances trade opportunities among those countries.

Question 54

​A company is most likely doomed to failure in a foreign country if it _____.

A)does not understand the country's culture
B)​does not emphasize its home country's language over that of the country
C)​varies its marketing mix based on the country's economic growth
D)pays attention to the country's demographics

Question 55

Currency markets operate under a system in which the prices of different currencies move up or down based on the demand for and supply of each currency.This is the system of__________.

Question 56

​Irving Inc. ,an apparel company,decides to expand operations to several countries around the world.However,it fails to take into account the various styles of clothing that are deemed acceptable in these countries.It sells the same clothes that it sells in its home country to the other countries.As a result,it suffers a major loss.In this scenario,Irving Inc.failed to be sensitive to the _____ of the countries.

A)economic factors
B)​legal environments
C)​cultural aspects
D)political forces

Question 57

The practice of returning production jobs to the United States is known as__________.

Question 58

​D Feet Corp.manufactures its footwear in a small town in America,but it sells to several countries around the world.Given this information,D Feet Corp.can best be characterized as a _____ multinational corporation.

A)first-stage
B)​second-stage
C)​third-stage
D)fourth-stage

Question 59

A small U.S.print studio uses Facebook and Pinterest to promote its stationery and other products.The regular posts and reviews from customers have attracted the attention of several companies worldwide who like to customize their office stationaries and supplies.This is an effect of__________.

Question 60

Identify a few disadvantages of global trade.

Question 61

​D'Costas,an authentic Mexican restaurant,has many restaurants all over the world.The taste and authenticity of the food served is the same irrespective of the restaurant one visits.Based on this information,D'Costas follows the strategy of _____.

A)retail channel omnification
B)​product adaptation
C)​mass customization
D)global marketing standardization

Question 62

​Vimonland Theme Park sells the necessary rights to an investment company to run a Vimonland theme park in a foreign country.The investment company gains most of the profits from the enterprise while paying Vimonland Theme Park a percentage as royalties.This is an example of _____.

A)licensing
B)​contract manufacturing
C)​exporting
D)importing

Question 63

​_____ is the sale of an exported product at a price lower than that charged for the same or a like product in the "home" market of the exporter.

A)Exporting
B)​Dumping
C)​Boycotting
D)Contract manufacturing

Question 64

​_____ is the largest Latin American trade agreement and includes Argentina,Bolivia,Brazil,Chile,Colombia,Ecuador,Paraguay,Peru,Uruguay,and Venezuela.

A)Mercosur
B)​General Agreement on Tariffs and Trade (GATT)
C)​The Uruguay Round
D)The North American Free Trade Agreement (NAFTA)

Question 65

​In the context of global marketing,when a domestic firm buys part of a foreign company or joins with a foreign company to create a new entity,it is known as a _____.

A)countertrade
B)​franchise
C)​joint venture
D)common trade alliance

Question 66

​A(n)_____ is a limit on the amount of a specific product that can enter a country.

A)quota
B)​tariff
C)​boycott
D)exchange control

Question 67

​_____ is a fast-growing way to conduct global business in which all or part of the payment for goods or services is in the form of other goods and services.

A)Countertrade
B)​Global market standardization
C)​Exporting
D)Market grouping

Question 68

​A small U.S.print studio uses Facebook and Pinterest to promote its stationery and other products.The regular posts and reviews from customers have attracted the attention of several companies worldwide who like to customize their office stationaries and supplies.This is an effect of _____.

A)contract manufacturing
B)​using social media to expand beyond local markets
C)​using dumping to export products
D)product differentiation

Question 69

​The _____ is a trade agreement that has dramatically lowered trade barriers worldwide and also created the World Trade Organization.

A)European Union
B)​General Agreement on Tariffs and Trade (GATT)
C)​North American Free Trade Agreement (NAFTA)
D)Uruguay Round

Question 70

​Khokho's Coffee House is the first to introduce flavored coffee in the global market.It sells coffee in several different flavors,such as blueberry,cinnamon,and cranberry,based on the popular flavors in each country.Based on this information,Khokho's Coffee House uses _____ to market its products.

A)product invention
B)​promotion adaptation
C)​global marketing standardization
D)product adaptation

Question 71

​A(n)_____ is an intermediary who brings a buyer and a seller together.

A)licenser
B)​export broker
C)​contract manufacturer
D)export merchant

Question 72

​Maria likes visiting different restaurants and trying out a variety of cuisines.She writes her experiences on a Web page,titled Maria's Experiences,which can be read by people all around the world.She also reviews restaurants,and members of her Web page are entitled to post their comments and suggestions.Based on this information,Maria's Experiences is an example of a(n)_____.

A)blog
B)​online forum
C)​widget
D)e-commerce Web site

Question 73

​Aztic Inc. ,a manufacturer of sports goods,plans to expand its operations to a new country.As part of this expansion,it determines whether the population of the country is primarily rural or urban.In this case,Aztic Inc.is assessing the _____ of the country.

A)political structure
B)​natural resources
C)​legal environment
D)demographic makeup

Question 74

​Fashion Spell,an apparel store,has a page on Facebook through which it interacts with its customers.It encourages customers to post comments about the store and give feedback.It also holds a lucky draw competition every week and the winner receives a gift voucher from Fashion Spell.Given this information,Fashion Spell uses _____ to increase its customer base.

A)social media marketing
B)​product adaptation
C)​contract manufacturing
D)countertrade

Question 75

​_____ are trade alliances in which several countries agree to work together to form a common trade area that enhances trade opportunities among those countries.

A)Exchange controls
B)​Market groupings
C)​Joint ventures
D)Direct foreign investments

Question 76

​Currency markets operate under a system in which the prices of different currencies move up or down based on the demand for and supply of each currency.This is the system of _____.

A)countertrade
B)​floating exchange rates
C)​dumping
D)contract manufacturing