Deck 9: Economic Development and the Americas

Question 1

A marketer can superimpose a sophisticated marketing strategy on an underdeveloped economy.

Answer 1

False
Explanation: A marketer cannot superimpose a sophisticated marketing strategy on an underdeveloped economy.

Question 2

Economic growth is measured not solely in economic goals but also in social achievements.

Answer 2

True
Explanation: Most countries see in economic growth the achievement of social as well as economic goals. Better education, better and more effective government, the elimination of many social inequities, and improvements in moral and ethical responsibilities are some of the expectations of developing countries. Thus economic growth is measured not solely in economic goals but also in social achievements.

Question 3

When the only marketing functions performed are demand creation and physical distribution, the marketing process is said to be in the mass distribution substage.

Answer 3

False
Explanation: When the only marketing functions performed are demand creation and physical distribution; the marketing process is said to be in the mass production substage.

Question 4

Countries that are experiencing rapid economic expansion and industrialization and do not exactly fit as LDCs or MDCs are more typically referred to as kinetically-developing countries (KDCs).

Question 5

If a country is industrially underdeveloped, agrarian, has a subsistence society with rural populations, has an extremely low per capita income level, and has little world trade involvement, then the country would be classified as a LDC (less-developed country).

Question 6

The UN classification has been criticized because it no longer seems relevant in the rapidly industrializing world.

Question 7

When the marketing process in a country is in the commercial transition substage, the only marketing function performed is physical distribution.

Question 8

The marketing process in the United States economy from 1950 to the present is said to be in a substage known as mass production.

Question 9

Mercosur is a free trade group formed by Brazil, China, Paraguay, and Uruguay.

Question 10

Brazil is considered a fully industrialized country.

Question 11

The level of political stability in a country is the single most important environmental element to which the foreign marketer must adjust the marketing task.

Question 12

Among three kinds of distances that international marketers must traverse-miles, time zones, and cultural distances-time zones have the greatest influence on the success of their commercial efforts abroad.

Question 13

Considering the United Nations' stages of economic development for classifying countries with respect to levels of industrialization, Brazil falls under the group of more-developed countries (MDCs)

Question 14

Economic development, as commonly defined today, tends to mean economic development, achieved "in centuries rather than decades."

Question 15

Conservation of resources is the fundamental objective of most developing countries.

Question 16

Marketing structures of many developing countries are simultaneously at many stages.

Question 17

The current level of economic development within a country dictates the kind and degree of market potential that exists.

Question 18

The more developed an economy, the lesser the variety of marketing functions demanded.

Question 19

Countries begin to lose economic development ground when their infrastructure cannot support an expanding population and economy.

Question 20

Considering the United Nations' stages of economic development for classifying countries with respect to levels of industrialization, if a country is an industrialized country with high per capita income it will fall under the group of highly-developed countries (HDCs).

Question 21

What is occurring in the BEMs is analogous to the situation after World War II when tremendous demand was created during the reconstruction of Europe.

Question 22

Considering the United Nations' stages of economic development presented in the text for classifying countries with respect to levels of industrialization, if a country is industrially underdeveloped, agrarian, and has subsistence society with rural populations and extremely low per capita income levels, the country is in which of the following groups?

A) PDCs (parallel-developed countries)
B) LLDCs (least-developed countries)
C) LDCs (less-developed countries)
D) NICs (newly industrialized countries)
E) RGCs (rapid-growth countries)

Question 23

The United Nations classification of stages of economic development has been criticized because it:

A) no longer seems relevant in the rapidly industrializing world.
B) does not take into consideration the level of political stability in a country.
C) does not take into consideration the social and cultural aspects of a country.
D) only focuses on the level of literacy in a country.
E) has too many categories.

Question 24

Which of the following is considered as the single most important environmental element of a country to which the foreign marketer must adjust the marketing task?

A) Political stability
B) Economic level
C) Technological development
D) Literacy level
E)

Question 25

Big emerging markets share some common traits. One of the traits common to BEMs is that they have significant populations.

Question 26

Considering the United Nations' stages of economic development presented in the text for classifying countries with respect to levels of industrialization, which of the following statements is true regarding an MDC (more-developed country)?

A) These countries are just entering world trade.
B) Majority of its population stays in a rural area.
C) These countries have high per capita incomes.
D) These countries are experiencing rapid industrialization.
E) These countries have agrarian economies.

Question 27

Mexico is a member of Mercosur.

Question 28

Mercosur is the largest common-market agreement in the Americas.

Question 29

According to information presented in the text, Chile, Brazil, Mexico, and South Korea don't exactly fit as MDCs (more-developed countries) or LDCs (less-developed countries). A new category applies to these countries. Identify the category.

A) LLDCs (least-developed countries)
B) KDCs (kinetically-developing countries)
C) PDCs (parallel-developed countries)
D) NICs (newly industrialized countries)
E) RGCs (rapid-growth countries)

Question 30

____ classifies a country's stage of economic development on the basis of its level of industrialization into three categories and the three categories are MIDCs, LDCs, and LLDCs.

A) The U.S. Department of Commerce
B) The North Atlantic Treaty Organization
C) The International Organization for Standardization
D) The United Nations
E) The World Trade Organization

Question 31

Which of the following is a fully industrialized country?

A) Brazil
B) Russia
C) Germany
D) Peru
E) Uruguay

Question 32

Most newly industrialized countries (NICs) have moved away from restrictive trade practices and instituted significant free market reforms. As a result these countries have:

A) attracted both trade and foreign direct investment.
B) overcome environmental damages caused by lack of development.
C) reduced population pressures through labor outsourcing.
D) obtained significant amount of loans from World Bank.
E) taken measures to protect their cultures and traditions.

Question 33

Considering the United Nations' stages of economic development for classifying countries with respect to levels of industrialization, if a country is an industrialized country with high per capita income, the country is in which of the following groups?

A) PDCs (parallel-developed countries)
B) LLDCs (least-developed countries)
C) MDCs (more-developed countries)
D) NICs (newly industrialized countries)
E) RGCs (rapid-growth countries)

Question 34

Uruguay is a member of NAFTA.

Question 35

During the early growth of many countries, the first large open market was ____.

A) China
B) the United States
C) Australia
D) Germany
E) India

Question 36

Countries that are experiencing rapid economic expansion and industrialization and do not exactly fit as LDCs or MDCs are typically referred to as:

A) LLDCs (least-developed countries)
B) KDCs (kinetically-developing countries)
C) PDCs (parallel-developed countries)
D) NICs (newly industrialized countries)
E) RGCs (rapid-growth countries)

Question 37

_____ development is generally understood to mean an increase in national production that results in an increase in the average per capita gross domestic product (GDP) or gross national income (GNI).

A) Market
B) Export
C) Import
D) Economic
E) Supply

Question 38

Which of the following countries is a part of the free trade group Mercosur?

A) Australia
B) China
C) Argentina
D) Russia
E) Thailand

Question 39

Considering the United Nations' stages of economic development presented in the text for classifying countries with respect to levels of industrialization, if a country is an industrially developing country just entering world trade with relatively low per capita income, the country is in which of the following groups?

A) PDCs (parallel-developed countries)
B) LLDCs (least-developed countries)
C) LDCs (less-developed countries)
D) NICs (newly industrialized countries)
E) MDCs (more-developed countries)

Question 40

Which of the following is NOT one of the factors changing the way countries trade and prosper in the twenty-first century?

A) The transition from socialist to market-driven economies.
B) Liberalization of trade and investment policies in developing countries.
C) The transfer of public-sector enterprises to the private sector.
D) The rapid development of regional market alliances.
E) The expansion of military interventions around the world.

Question 41

All of the following factors are cited as being reasons that NICs (newly industrializing countries) have had such remarkable success EXCEPT:

A) political stability.
B) economic and legal reforms.
C) rapid increase in population.
D) outward orientation.
E) entrepreneurship.

Question 42

Canada is most likely to be classified under the category of ____.

A) PDCs (parallel-developed countries)
B) LLDCs (least-developed countries)
C) MDCs (more-developed countries)
D) NICs (newly industrialized countries)
E) RGCs (rapid-growth countries)

Question 43

Countries begin to lose economic development ground when their _____ cannot support an expanding population and economy.

A) industrial production
B) infrastructure
C) import
D) agricultural production
E) gold reserves

Question 44

_____ is the fundamental objective of most developing countries.

A) Entrepreneurship
B) Industrialization
C) Conservation of resources
D) Enabling a strong home land defense force
E) Establishing a strong agricultural system

Question 45

If an NIC (newly industrializing country) had the characteristic of increasing the production for the domestic market and export markets with increases in efficiencies and continual differentiation of exports from competition as its focus, the country would be using which of the following factors as a component for growth?

A) Economic and legal reforms
B) Privatization
C) An outward orientation
D) Entrepreneurship
E) Factors of production

Question 46

With respect to the evolution of the marketing process, which of the following would be considered to be the most fundamental substage (first substage) of the process?

A) Surplus commodity product
B) Commercial transition
C) Mass production
D) Mass distribution
E) Self-sufficient

Question 47

According to the evolution of the marketing process, when the only marketing functions performed are demand creation and physical distribution, the marketing process is in this substage. Identify the substage in the discussion.

A) Mass production
B) Commercial-transition
C) Self-sufficient
D) Surplus commodity product
E) Small scale

Question 48

When the marketing process is characterized by mass distribution, all of the following marketing functions are performed EXCEPT:

A) demand creation.
B) market information analysis.
C) physical distribution.
D) exchange.
E) market and product planning, development.

Question 49

According to the evolution of the marketing process, when the only marketing functions performed are demand creation, physical distribution, and market information analysis, the marketing process is in this substage. Identify the substage in the discussion.

A) Mass production
B) Commercial-transition
C) Self-sufficient
D) Surplus commodity product
E) Small scale

Question 50

_____ is an economy's arbitrator between productive capacity and consumer demand.

A) Management
B) Marketing
C) Public relations
D) Mass media
E) Economics

Question 51

In which of the following countries the literacy rate is 100 percent?

A) Mexico
B) Canada
C) Colombia
D) Argentina
E) Peru

Question 52

The level of market development roughly parallels the stages of the:

A) product life cycle.
B) innovation adoption curve.
C) new product development process.
D) software development life cycle.
E) economic development.

Question 53

Which of the following statements is true regarding the Internet?

A) The Internet increases the economically optimal size for firms.
B) The Internet increases the transaction costs.
C) The Internet allows for innovative services but at a relatively higher cost.
D) Due to the Internet, smaller firms in emerging economies can now sell into a global market.
E) The Internet slows down the process of economic growth.

Question 54

The 2012 Olympics are going to be held in ____.

A) Japan
B) China
C) Germany
D) Brazil
E) France

Question 55

Economic planners are often more _____ oriented than _____ oriented.

A) production; marketing
B) procedure; result
C) profit; policy
D) quality; profit
E) theory; application

Question 56

According to the evolution of the marketing process, the marketing process in a country is in which of the following substages when the only marketing function performed in a country is exchange?

A) Surplus commodity product
B) Commercial-transition
C) Mass production
D) Mass distribution
E) Self-sufficient

Question 57

Economic planners are most likely to be least concerned with the problems related to ____.

A) production
B) capital
C) expenditure
D) distribution
E) investment

Question 58

When countries sell off state-owned enterprises, it usually results in a(n):

A) surge in household expenditure.
B) decline in productivity throughout the private sector.
C) release of capital to invest elsewhere.
D) change in political leadership.
E) increase in unemployment rate.

Question 59

One indicator of economic development is the ____.

A) population growth rate
B) literacy level
C) extent of social overhead capital
D) mortality rate
E) inflation rate

Question 60

Paved roads, railroads, seaports, communication networks, and financial networks are illustrations of ____.

A) raw material
B) labor support system
C) infrastructure
D) factors of production
E) microenvironment

Question 61

South Africa is geographically large and represents a sizable market for a wide range of products. It has the potential for significant growth. It is considered as the regional economic driver. Based on this information, South Africa can be classified as a(n) _____.

A) developing market
B) big emerging market
C) entrepreneurial market
D) agrarian market
E) less developed market

Question 62

Which of the following countries is a member of Latin American Integration Association (LAIA, aka ALADI)?

A) India
B) Cuba
C) Canada
D) Costa Rica
E) Honduras

Question 63

Estimating demand potential in less-developed countries involves myriad challenges. Most of the difficulty arises from the _________.

A) coexistence of three distinct kinds of markets in each country
B) dependence of their economies on agriculture
C) lack of sophisticated technology
D) high fluctuation in the currency rate
E) concentration of population in the rural area

Question 64

What is happening in BEMs today is analogous to what happened in:

A) Saudi Arabia in the 1800s.
B) India during the British Empire period.
C) Russia after the fall of the czar.
D) Europe after World War II.
E) Iraq between 1890 to 1990.

Question 65

The three members of the North American Free Trade Agreement (NAFTA) are:

A) Brazil, Canada, and China
B) Mexico, Peru, and Uruguay
C) Canada, Mexico, and Brazil
D) The United States, Canada, and Germany
E) Canada, Mexico, and the United States

Question 66

In the language of international marketing, BEM stands for:

A) business, e-commerce, and marketing.
B) business units and economic models.
C) big emerging markets.
D) bilateral economic models.
E) bilateral enhanced marketing.

Question 67

Big emerging markets (BEMs) share a number of important traits. All of the following would be among those traits EXCEPT:

A) they principally export labor and raw resources.
B) they are all physically large.
C) they have significant populations.
D) they are "regional economic drivers."
E) they are of major political importance within their regions.

Question 68

With reference to NAFTA, due to ____, Japan could not assemble autos in Mexico and avoid U.S. or Canadian tariffs and quotas unless the auto had a specific percentage of Mexican (i.e., North American) content.

A) very high tariffs
B) certain quality standard requirements
C) rules of origin
D) issues related to intellectual property rights
E) quota restrictions

Question 69

Which of the following countries is a member of the free trade agreement DR-CAFTA?

A) Bahrain
B) Bhutan
C) Morocco
D) Costa Rica
E) Oman

Question 70

All of the following statements are true regarding NAFTA EXCEPT:

A) NAFTA prohibits the use of standards and technical regulations used as obstacles to trade.
B) NAFTA was ratified and became effective in 1994.
C) NAFTA provisions require the United States or Canada to lower existing health, environmental, and safety regulations.
D) The three members of NAFTA are Canada, Mexico, and the United States.
E) Under NAFTA, Canada, Mexico, and the United States have agreed to implement uniform customs procedures and regulations.

Question 71

According to rules of origin, for goods to be traded duty free, generally, they must contain at least ______ percent North American content.

A) 18.2
B) 24.6
C) 38.7
D) 48.5
E) 62.5

Question 72

Which of the following countries is considered as a BEM (big emerging market)?

A) Australia
B) Tanzania
C) Uganda
D) Mexico
E) Germany

Question 73

Given the fact that NAFTA is now effective among the U.S., Mexico and Canada, an American company which has its production plant in Sri Lanka will be willing to relocate its production plant in Mexico mostly because:

A) it will improve the image of its goods.
B) Mexico has lower wages than Sri Lanka.
C) Mexico has better infrastructure than Sri Lanka.
D) moving goods from Mexico to the United States is cheaper and faster than moving them from Sri Lanka.
E) workers in the Mexico are more skilled than those in Sri Lanka.

Question 74

Which of the following best characterizes the United States today with respect to the evolution of the marketing process?

A) Mass production
B) Commercial-transition
C) Self-sufficiency
D) Surplus commodity product
E) Mass distribution

Question 75

Per capita income of middle class falls in the band of _____ to _____ at purchase price parity.

A) $1000; $5000
B) $5000; $10000
C) $10000; $20000
D) $5000; $20000
E) $10000; $15000

Question 76

According to the evolution of the marketing process, between 1885 to 1914, the marketing process in the U.S. is said to be characterized by ____.

A) mass distribution
B) self-sufficiency
C) mass production
D) surplus commodity product
E) commercial-transition

Question 77

If a market is characterized as being geographically large, has significant population, is a regional economic driver, and has undertaken significant programs of economic reform, the market is classified as a(n):

A) developing market.
B) less developed market.
C) entrepreneurial market.
D) agrarian market.
E) big emerging market.

Question 78

Which of the following countries is a part of the free trade area known as CFTA?

A) France
B) Uruguay
C) The United States
D) Argentina
E) Brazil

Question 79

NAFTA was ratified and became effective in the year ____.

A) 1865
B) 1890
C) 1945
D) 1994
E) 2000

Question 80

Total foreign direct investment in Mexico has averaged _____ billion a year since 1995.

A) $5
B) $8
C) $11
D) $20
E) $30