Deck 4: Developing a Global Vision

Question 1

Which of the following statements best describes multinational firms?

A)Multinationals typically do not change their methods of reaching their global markets if they are successful with their initial strategy.
B)Multinationals are defined as companies heavily engaged in exporting and importing.
C)All multinationals must enter the fourth stage of globalization before they are fully internationalized.
D)Multinationals often develop their global businesses in stages.

Answer 1

D

Question 2

British Telecom is heavily engaged in trade throughout Europe and the far-east. It is able to shift resources, goods, services, and skills across national borders. What type of organization is it?

A)international facilitator
B)global trader
C)multinational corporation
D)exporter

Answer 2

C

Question 3

Why do Canadian managers develop a global vision?

A)to recognize and react to international markets
B)to compete with Walmart
C)to understand what consumers need
D)to sell international products to our Canadian diverse culture

Answer 3

A

Question 4

The same Timex, Seiko, and Citizen wristwatches you buy in North America can be purchased around the world. Why is there is no difference in a watch purchased in Russia, in Mexico, or in Singapore?

A)The manufacturers of these watches use an ethnocentric strategy.
B)The manufacturers of these watches use a global marketing standardization approach.
C)The manufacturers of these watches use a synergistic approach to globalization.
D)The manufacturers of these watches use a cultural marketing strategy.

Question 5

Cardiac Science, a Canadian manufacturer of heart-monitoring devices and other medical devices, sells 85 percent of its products outside Canada. It sells basically the same product to a hospital in London, Tokyo, Pretoria, or Sydney. It uses the same promotional tactics in all of its markets. Which of the following most likely describes Cardiac Science?

A)It is not concerned about media and messages used for international promotional efforts.
B)It uses global marketing standardization.
C)It assumes cultural uniformity and lifestyle differences occur across cultural settings.
D)It desires technological receptivity from country to country.

Question 6

When European demand for a certain solvent declined, Dow Chemical instructed its German plant to switch to manufacturing a chemical that had been imported from Louisiana and Texas. How would Dow Chemical best be described?

A)as a global enterprise
B)as a global trader
C)as a cultural marketer
D)as a multinational corporation

Question 7

Rolex has decided to market its new sports watch product line using a uniform strategy. How else could such a strategy be described?

A)a traditional marketing strategy
B)a global marketing standardization approach
C)a product extension approach
D)a culturally based marketing strategy

Question 8

Otis Elevators has entered into a strategic alliance with a company in France from which it gets its elevator door systems. It has a similar agreement with a manufacturer in Japan that provides it with special motor drives. The parts are assembled at its plant in the United States. Otis elevators can be found in buildings all over the world. What is Otis Elevators an example of?

A)a cultural marketer
B)a global trader
C)a multinational corporation
D)a global enterprise

Question 9

How does having a global vision assist a manager?

A)to understand how to price products
B)to help them react to international marketing opportunities
C)to compete globally
D)to make the most money possible

Question 10

World merchandise trade volume is expected to continue to demonstrate growth year after year, but the strength of the growth is weakening. What is the reason for that?

A)slowing GDP
B)consumers keep changing what they want
C)prices in the market are increasing
D)prices of fuel have increased

Question 11

Basketball is played nearly everywhere in the world. The National Basketball Association (NBA) finals reached more than 600 million televisions in 195 countries. From this information, what should you be able to infer about the NBA?

A)It is developing international selling schemes.
B)It is implementing standard international marketing.
C)It is practising global marketing.
D)It is supplementing its foreign vision.

Question 12

Many consumers experience the benefits of globalization, including lower prices and access to exotic products; however, others are concerned with the massive expansion of companies such as Walmart. Why are these consumers concerned?

A)because globalization will inevitably lead to inflation
B)because globalization will cause living standards to increase at a slower rate
C)because globalization causes some job loss as production shifts abroad
D)because globalization has increased global wages

Question 13

Which of the following describes a common criticism of multinational companies?

A)the transfer of the wrong kind of technology to a developing nation
B)the use of western workers in the third world countries
C)paying the minimum wage in whatever country they go to
D)dumping of first world excess products on to third world countries

Question 14

Target entered the Canadian market in 2013 and was not successful. What was the most important reason?

A)Consumers like to shop at Walmart.
B)The Canadian market was too small with two US retailers competing for market share.
C)Target used non-proprietary technology that was not suited to the Canadian supply chain.
D)Target didn't understand the Canadian marketplace.

Question 15

General Motors has just sold a new line of robots to manufacture cars to Indian auto company Tata Motors. This purchase can be described as capital intensive. What will this mean for Tata Motors?

A)Tata Motors will have an altered fiscal strategy for overseas operations.
B)Tata Motors will spend more on equipment than on labour.
C)Tata Motors will make better use of benchmarking than other types of business.
D)Tata Motors will create employment monopolies.

Question 16

What are the organizations that utilize a global vision to effectively market goods and services across national boundaries engaged in?

A)practising international selling schemes
B)implementing standard international marketing
C)implementing global marketing standardization
D)practising global marketing

Question 17

Which of the following best describes global marketing standardization?

A)is becoming less popular with the large multinationals
B)encourages product, packaging, and advertising variations for each nation or local market
C)raises production costs
D)presumes markets throughout the world are becoming more alike

Question 18

What was the result of the 2013 Bangladesh garment factory collapse?

A)More multinationals are taking a proactive role in being good global citizens.
B)Multinationals are not concerned about the welfare of global citizens.
C)Loblaws covered many of the costs of the factory collapse.
D)The Retail Council of Canada committed to updating guidelines for best practices.

Question 19

Which of the following statements best describes global marketing?

A)Marketing throughout the world has become optional for businesses.
B)Often a Canadian firm's toughest foreign competition comes from domestic companies.
C)Firms must develop a global vision to expand internationally and remain competitive at home.
D)Global marketing cannot offset weak domestic performance.

Question 20

Which of the following statements describes one of the benefits of increased globalization?

A)Millions of Canadians have filled jobs created by imports and production shifts abroad.
B)Because of world trade, Canadians have seen price reductions in certain products.
C)Because jobs are threatened by exports, employers are issuing pay-cut demands to their workers.
D)Export jobs typically pay less money than other jobs.

Question 21

The Rice Millers' Association claims that if the Japanese government would remove the tax on imported North American rice, Japanese consumers would save $6 billion annually. What is this tax an example of?

A)an embargo
B)a tariff
C)an import quota
D)a transfer fee

Question 22

A Canadian citizen, Daya Kaur was excited to purchase over 30,000 Fender amplifiers from the United States. She intended to sell them to Canadian music stores. Her excitement was cut short when Canadian Customs informed her that she was only allowed to bring in 10,000 units. What was Canada Customs imposing?

A)a quota
B)a tariff
C)a boycott
D)a transfer limit

Question 23

A Canadian executive had no idea the Japanese go through a very elaborate ritual when exchanging business cards. When he arrived at a meeting in Tokyo, he sat down and tossed some of his business cards across the table at a group of stunned Japanese businesspeople. Due to the Canadian executive's rudeness, the multimillion-dollar deal failed. The executive overlooked the importance of which environmental factor?

A)culture
B)demographics
C)politics
D)subculture

Question 24

American catfish farmers mounted an aggressive offensive against imports of catfish from Vietnam, which have increased by over $40 million in four years. As a result of the offensive, US consumers must pay about 50 percent more for catfish imported from Vietnam. What are most likely used to make sure that Vietnamese catfish was selling at a price comparable to US-bred catfish?

A)tariffs
B)boycotts
C)export duties
D)countertrades

Question 25

In 2010, Google pulled out of the Chinese market. Why are they returning to the Chinese market?

A)because China is happy to have them
B)because Google is working hard to develop a government-approved app
C)because it is time for China to become more lenient to the changes in technology
D)because Google wants to have access to the large Chinese market

Question 26

What city is the most expensive place to live in the world?

A)Toronto
B)Singapore
C)Los Angeles
D)London

Question 27

Which of the following is an important cultural factor that should be considered by global marketers?

A)competitive values
B)language
C)natural resources
D)technology uptake

Question 28

Which two countries are of growing interest to many multinationals?

A)Russia and Poland
B)Russia and India
C)China and India
D)China and Russia

Question 29

Muslim countries are receptive to most Disney products, but they have asked Disney not to include Piglet when it sells its Winnie the Pooh characters because, as a part of their religious beliefs, Muslims contend that pork in any form is unclean. Which type of factor is directly affecting Disney's global operation?

A)political structure
B)cultural
C)technological
D)competitive

Question 30

A Canadian citizen, Daya Kaur was excited to purchase over 10,000 Fender amplifiers from the United States. She intended to sell them to Canadian music stores. One thing she didn't take in to account when working out her profit margins was the tax that would be levied on the amplifiers as they entered Canada. What is another name for these taxes?

A)licences
B)quotas
C)transfer limits
D)tariffs

Question 31

The British can be said to be overly polite, have a love of dogs and tea, and have a unique sense of humour. How do marketers refer to these values collectively?

A)a country's ethical system
B)a country's culture
C)a country's ethnocentricity
D)a country's socialization

Question 32

A soft-drink manufacturer that was thinking of investing in a bottling plant in the Czech Republic should know the nation is proud of the fact it is among the world's biggest beer drinkers. On average, Czechs consume half a litre of beer a day for every man, woman, and child in the country. Which environment of this country could very easily prevent the soft-drink bottling company from succeeding?

A)demographic
B)economic
C)cultural
D)political

Question 33

Argentina has restrictions against "big-box" retail stores like The Home Depot. The only way these retail operations can open a store in Argentina is if they do not sell either clothing or food. Also, at least 50 percent of all merchandise sold in the stores must be manufactured in Argentina. Which type of environment is influencing globalization in this example?

A)economic
B)technological
C)legal
D)cultural

Question 34

When Britain refused to buy bananas from South America, the US government, as a means of helping its trade partners, legislated taxes on some imported British-produced goods. These taxes included a nearly 100-percent charge on Scottish wool products. What is another term for this charge?

A)a quota
B)an export duty
C)a licence
D)a tariff

Question 35

Since 1953, the United States has limited the amount of raw peanuts that can be imported to 1.7 million pounds a year. This is only about 0.1 percent of all domestic edible peanut consumption in the United States. What is this limitation an example of?

A)a natural resource barrier
B)a quota
C)a tariff
D)an exchange control

Question 36

According to your textbook, which of the following countries have a strong trading relationship?

A)Canada and Russia
B)Canada and China
C)United States and Cuba
D)United States and China

Question 37

In China, August 15 is the "Chinese Saint Valentine's Day," in memory of two ancient lovers who were separated by a goddess and allowed to meet only once a year on that date. Flower and candy sales typically increase that day as they do on February 14 in North America. This would be an important part of which international environment for a flower wholesaler or a confectionery company?

A)cultural
B)legal
C)economic
D)technological

Question 38

A global marketer today must be fully aware of the intertwined nature of the global economy. What is one of the most important issues to consider when doing business abroad?

A)Economic growth changes due to economic conditions.
B)Finances are usually stable in global economies.
C)It is easy to enter into a foreign market.
D)Global markets can be projected to accurate numbers.

Question 39

A business thinking of expanding into global markets needs to examine its external environment. Which of the following options is NOT part of the external environment?

A)culture
B)political structure and actions
C)marketing mix
D)demographic makeup

Question 40

The fact that Nigeria's inflation rate has dropped by almost 2.5 percent since the beginning of this decade would be what type of factor for a company that wanted to do business in that country?

A)legal
B)economic
C)cultural
D)technological

Question 41

In 1764, the British Sugar and Currency Acts created such economic difficulty in the American colonies that soon-to-be Americans refused to buy British goods in protest. What did this refusal mark one of the first examples of?

A)the use of a boycott
B)the use of a quota
C)the use of a tariff
D)the use of an exchange control

Question 42

Which of the following is a law that compels a company earning foreign currency from its exports to sell it to a central bank rather than sending the money out of the country?

A)a tariff
B)a quota
C)a fiscal prerequisite
D)an exchange control

Question 43

The Group of Twenty was brought together in 1999 to accomplish what task?

A)to bring together industrialized and developing economies to discuss foreign issues
B)to bring together national companies to discuss trade
C)to promote national growth
D)to increase the GDP of developing countries

Question 44

Which country is the largest importer to Canada?

A)United States
B)France
C)China
D)United Kingdom

Question 45

What do NAFTA and the EU have in common?

A)They are both boycotts.
B)They are both regional unifications.
C)They are both market groupings.
D)They are both free trade nations.

Question 46

What do we call negotiations (such as NAFTA) between countries that are made to stimulate global exchange and remove barriers?

A)trade agreements
B)joint venture agreements
C)CRM agreements
D)exchange agreements

Question 47

Which of the following statements best describes the European Union (EU)?

A)The EU creates a single Eurozone for generic Europroducts.
B)The EU removes all internal trade barriers and standardizes regulations in European countries for easier trade.
C)The EU can be detrimental to business as not all Europeans shop alike.
D)The EU is dominated by five major countries and many much smaller countries.

Question 48

As of 2016, how many members does the EU have?

A)23
B)28
C)32
D)48

Question 49

What historic agreement did Prime Minister Justin Trudeau sign in 2016?

A)Mercosur covenant
B)CAFTA Alliance
C)Dough Round
D)CETA

Question 50

Which of the following is NOT created by vast differences in natural resources?

A)potential for military intervention
B)shifts in wealth between nations
C)inflation and recession
D)export opportunities for countries with no natural resources

Question 51

Which of the following has NOT been a result of petroleum shortages?

A)the creation of huge amounts of wealth for oil-producing countries such as Norway and Saudi Arabia
B)the inability of oil-producing nations to service foreign debts when prices go up
C)the capacity for some countries such as Mexico and Venezuela to borrow heavily against oil reserves to develop more rapidly
D)inflation in oil-dependent nations and transfer of wealth to oil-producing nations

Question 52

Marlin manufactures washing machines. It is designing advertisements and planning the promotional mix for marketing in Eastern Europe, South Africa, India, and Brazil. Which of the following should the advertising manager NOT expect to cause problems?

A)media availability
B)government regulations
C)exchange control
D)cultural differences

Question 53

What has caused East Asia's economic miracle?

A)a large population
B)a strong work force
C)beneficial age structure
D)a cultural and political need to succeed

Question 54

Which method of entering the global marketplace would be least risky?

A)exporting
B)licensing
C)contract manufacturing
D)joint ventures

Question 55

US wine producers export only about 14 percent of their total annual production of wine. What does this statement indicate about the US wine industry?

A)It is selling more wine abroad than it does at home.
B)It is an industry in the first stages of globalization.
C)US customers prefer international wines to domestic wines.
D)It is producing more wine than it can sell.

Question 56

What is the primary goal of the EU?

A)to create free-trade agreements between the United States and other industrialized nations
B)to eliminate all protectionism
C)to raise prosperity levels in all industrializing nations
D)to establish a unified European market

Question 57

Shark fin soup is illegal in Canada. Furthermore any products that come from shark finning are also illegal. This means that these products are not allowed in Canada. What has the Canadian government imposed?

A)an expropriation
B)a quota
C)a tariff
D)a boycott

Question 58

A multinational company that makes a labour-intensive product realizes that factors such as median age, gender, and literacy rates will determine the success of its global expansion. What is the term that identifies the makeup of countries?

A)demographics
B)lifestyle
C)ethnicity
D)culture

Question 59

What is a trade agreement that includes Argentina, Bolivia, Brazil, Chile, Columbia, Ecuador, Paraguay, Peru, and Uruguay and has eliminated the tariffs among these trading partners?

A)NAFTA
B)Maastricht
C)Mercosur
D)GATT

Question 60

Zambia is internationally recognized as the world's second leading producer of cobalt, which is used to make high-speed and high-temperature cutting tools and dyes. A company that wanted to manufacture tools for shaping steel would be most attracted to which element of the Zambian environment?

A)culture
B)legal
C)economic
D)natural resources

Question 61

Which country is the world's largest exporter?

A)Canada
B)China
C)United States
D)Mexico

Question 62

Harry Potter author J.K. Rowling has in the past allowed toy manufacturer Mattel to use the Harry Potter logo and character likenesses in its toy designs in return for a fee. What is this known as?

A)a joint venture
B)divestment
C)licensing
D)a principal-agent agreement

Question 63

When Krispy Kreme decided to expand its operation internationally, it chose to first make its doughnuts available in Canada to minimize its risk. In accordance with the policy of risk minimization, the company sold the rights to manufacture and sell its doughnuts to Canadians. What did Krispy Kreme use?

A)contract manufacturing
B)direct investment
C)importing
D)licensing

Question 64

With which of the following does a domestic firm assume an equity position (partial ownership) in a foreign firm to manufacture and/or market the domestic company's goods?

A)direct investment
B)a joint venture
C)a buying-for-export agreement
D)a contractual agreement

Question 65

What is the term for an intermediary in the global market who assumes all risks and sells globally for its own account, and who is treated by the domestic manufacturer like a domestic customer?

A)buyer for export
B)export agent
C)joint venture
D)contract manufacturer

Question 66

A cooperative of egg producers believes a profitable market for eggs exists overseas where people are not as concerned about cholesterol. What would be the least complicated and least risky method for the farmers' cooperative to use to reach a global marketplace?

A)direct investment
B)joint venture
C)contract manufacturing
D)exporting

Question 67

The manufacturer of Marlboro cigarettes has given Japan Tobacco the legal right to use its trademarks and patents to manufacture Marlboro cigarettes in Japan. For this right, Japan Tobacco pays a fee. To enter an international market, what did the manufacturer of Marlboro cigarettes use?

A)licensing
B)exporting
C)contract manufacturing
D)direct investment

Question 68

What is the role of a domestic company that sells to an export merchant (also called a buyer for export)?

A)to guide the marketing actions of the merchant as the goods are sold in foreign countries
B)to pay all transportation, warehousing, and marketing expenses
C)to sell the product to a merchant who resells the product in the foreign country without the aid or input of the original manufacturer
D)to broker a partnership agreement such as a joint venture

Question 69

An English manufacturer of cricket equipment sells directly to Universal Sports, which markets the products in Canada. What is Universal Sports an example of?

A)a franchisee
B)a contract broker
C)an export agent
D)a contract manufacturer

Question 70

A cooperative of egg producers believes a profitable market for eggs exists overseas where people are not as concerned about cholesterol. What will the cooperative most likely use if it decides to export?

A)a commission merchant
B)a drop shipper
C)an export broker
D)an export agent

Question 71

What is the term for a global intermediary that operates primarily in agriculture and raw materials by bringing the buyer and seller together?

A)buyer for export
B)export agent
C)license agent
D)export broker

Question 72

An English manufacturer of cricket equipment sells directly to Universal Sports, which markets the products in Canada. What is the English manufacturer using?

A)a strategic alliance
B)licensing
C)franchising agreements
D)exporting

Question 73

How can a Canadian licensor try to prevent a licensee from voiding its contract and using what it has learned to create a competitor?

A)by using lawyers from both countries to write the licensing agreement
B)by insisting that all licensees have a published code of ethics
C)by having the licensee pay a fee for the use of the manufacturing process, trademark, patent, or other proprietary knowledge
D)by locally registering patents and trademarks to the Canadian firm-not the licensee

Question 74

What is the strategy in which a company decides to enter the global market place?

A)exporting
B)licensing
C)joint venture
D)importing

Question 75

Foreign sales agents-distributors who live in a foreign country and represent a domestic company in sales situations perform the same functions as domestic manufacturers' agents who help with financing and shipping. What are they called?

A)export agents
B)export brokers
C)import brokers
D)buyers for export

Question 76

Staropramen, the second largest brewery in the Czech Republic, began brewing beer in 1842. It has agreed to let a Polish brewery use its brand and manufacturing techniques in return for a fee. What is Staropramen using to expand its global marketing?

A)contract manufacturing
B)exporting
C)a joint venture
D)licensing

Question 77

Mitsubishi Heavy Industries and Kawasaki Heavy Industries produce McDonnell Douglas's F-15 fighter planes in Japan. The two Japanese companies pay McDonnell Douglas royalties for use of its manufacturing processes and patents. What is this an example of?

A)contract manufacturing
B)strategic investment
C)joint venture
D)licensing

Question 78

DigiSystems Inc. manufactures personal gauges for measuring contact with potentially hazardous materials. Its management wants to expand into international markets while also limiting the risks involved. Additionally, DigiSystems has a limited capital base for new or expanded facilities. Which of the following options for entering international markets should DigiSystems use?

A)direct investment
B)agent manufacturing
C)joint venture
D)licensing

Question 79

Tim Hortons allows its franchisees to use its logo, plus its buying and negotiating prowess in return for a fee. What is this also known as?

A)outsource contract marketing
B)international exporting
C)licensing
D)agent manufacturing

Question 80

Disney sells the rights for an investment company to run a Disneyland theme park in Tokyo. The investment company gains most of the profits from the enterprise while paying Disney a percentage in royalties. What is this an example of?

A)a joint venture
B)exporting
C)direct investment
D)licensing