Deck 8: Reaching Global Markets

Question 1

International marketing is defined as marketing activities performed across national boundaries.

Answer 1

True

Question 2

Customs and taboos are culture-bound and should be taken into consideration when products are marketed in a foreign environment.

Answer 2

True

Question 3

The World Trade Organization was an important outcome of the unification of Europe.

Answer 3

False

Question 4

GATT was based on negotiations between member countries to reduce worldwide tariffs and increase international trade.

Question 5

In determining the size of the market for consumer products, the international marketer will probably be very interested in per capita GDP figures.

Question 6

NAFTA simplifies country-of-origin rules, hindering Japan's use of Mexico as a staging ground for further penetration into U.S. markets.

Question 7

A quota is the suspension, by a government, of trade in a particular product.

Question 8

Opportunities for international marketers are limited to industrial nations with the highest incomes.

Question 9

The study of the cultural environment is unnecessary in the foreign market because foreign consumers will accept anything that American marketers have to sell.

Question 10

When products are introduced from one nation into another, acceptance is more likely if the two cultures are different.

Question 11

U.S. marketers may engage in bribery to compete with foreign firms.

Question 12

ASEAN faces obstacles in becoming a unified trade bloc because of conflicts among members.

Question 13

Cultural differences do not affect marketing negotiations and decision-making behavior.

Question 14

A positive balance of trade is considered good because it means that U.S. dollars are supporting foreign economies at the expense of U.S. companies and workers.

Question 15

From a cultural perspective, countries that are members of the European Union tend to act as a single entity.

Question 16

Customers who travel the globe expect to be able to buy the same product in most of the world's more than 200 countries.

Question 17

Despite the benefits of digital technology, it may actually be increasing the divide between skilled wealthy workers and the rest of the labor force.

Question 18

NAFTA eventually eliminates all tariffs on goods produced and traded between the United States, Mexico, and Brazil.

Question 19

An embargo occurs when a government suspends trade with a particular country.

Question 20

Cultural relativism is the unconscious reference to one's own cultural values, experiences, and knowledge when traveling in other countries.

Question 21

Franchising is an arrangement whereby a franchisee grants a franchiser the right to market its product, using its name, logo, methods of operation, advertising, products, and other elements of the franchising company's business, in return for a financial commitment and an agreement to conduct business in accordance with the franchisee's standard of operations.

Question 22

A multinational enterprise is a firm that has operations or subsidiaries located in many countries.

Question 23

An accounting firm contracts with a local janitorial services company for janitorial services twice a week. The accounting firm is outsourcing for its janitorial service needs.

Question 24

Importing is the sale of products to foreign markets.

Question 25

Brand name, product characteristics, packaging, and media allocation are among the easiest marketing mix variables to standardize around the world.

Question 26

Under a licensing arrangement, the licensee pays commissions or royalties on sales or supplies used in manufacturing.

Question 27

In Singapore, the price of imported Scotch is $30 per glass as opposed to Scotch from Singapore, which is $3. Which of the following do you think accounts for the difference in price?

A)Exchange control
B)Balance of trade
C)Import tariff
D)Embargo
E)Export tariff

Question 28

According to your text, ____ are small technology-based firms operating in international markets almost immediately after their establishment and realizing as much as 70% of their sales outside the domestic home market.

A)"natural globals"
B)"multinational corporations"
C)"born globals"
D)"born multinationals"
E)"multinational enterprises"

Question 29

Media allocation, retail outlets, and price are among the easiest marketing mix variables to standardize.

Question 30

The joint venture approach has little appeal to industries involved in extraction of natural resources.

Question 31

The job of the export agent is to bring together buyers and sellers from different countries.

Question 32

When Dunkin Donuts decided to expand into the international markets of India, Japan, and Argentina, management realized that there would be significant differences in the standards of living, credit, buying power, and income distribution in those countries. Dunkin Donuts is currently examining the ____ forces in its environmental analysis.

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

Question 33

Globalization of marketing involves developing marketing strategies as though the entire world (or major regions of it) were a single entity.

Question 34

It is impossible for a subsidiary to develop a local identity because it seldom employs personnel from the country within which it operates.

Question 35

A trading company provides a link between buyers and sellers in different countries.

Question 36

Before the 1990s, most firms entered international markets

A)globally.
B)incrementally.
C)slowly.
D)domestically.
E)quickly.

Question 37

The forces that affect foreign markets may differ dramatically from those affecting domestic markets. This makes a careful ____ a critical part of a successful international marketing strategy.

A)political analysis
B)regulatory analysis
C)social audit
D)environmental analysis
E)marketing analysis

Question 38

Domestic marketing involves marketing strategies aimed at markets within the home country.

Question 39

One of the guaranteed constants in the global business environment is

A)nationalism.
B)instability.
C)tariffs.
D)taxes.
E)war.

Question 40

Today many firms are more interested in building marketing strategies around similarities that exist among countries than customizing around their differences.

Question 41

Special interest groups and regulatory bodies are ____ forces that must be taken into account in international marketing.

A)socioeconomic
B)technological
C)economic
D)social and ethical
E)political and legal

Question 42

Marketers of computer software, music CDs, and books are particularly affected by cultural differences in

A)socioeconomic status of citizens.
B)advances in technology.
C)differences in cross-cultural exchange behavior.
D)ethical codes of conduct for businesses.
E)standards regarding intellectual property.

Question 43

Italy currently limits the number of Michael Kors bags that can be imported during a one-year period, since Michael Kors bags are made in New York, USA. This is an example of a(n)

A)exchange control limit.
B)embargo.
C)quota.
D)import tariff.
E)supply limit.

Question 44

Which of the following is often used to raise revenue for a country and/or to protect domestic products?

A)Quota
B)Warning label
C)Embargo
D)Import tariff
E)Exchange control

Question 45

Which of the following is used to help maintain a more favorable balance of trade by a country?

A)Limiting imports
B)Limiting exports
C)Establishing exchange controls
D)Increasing gross domestic product
E)Changing political systems

Question 46

____ can force businesspeople to buy and sell foreign products through a central agency, such as a central bank.

A)Embargoes
B)Export tariffs
C)Quotas
D)Import tariffs
E)Exchange controls

Question 47

When products are introduced into one nation from another, acceptance is far more likely

A)if prices are set very low.
B)when bribes are paid to local officials to aid distribution.
C)if there are similarities between the two cultures.
D)if packaging is adjusted to match local preferences.
E)when retailers are given incentives to push the products.

Question 48

John Deere, maker of large construction equipment in the United States, would like to better understand factors that would affect its ability to export its products to various countries. Which of the following forces determine how trade barriers affect John Deere's marketing efforts?

A)Political and legal
B)Economic
C)Industrial and technological
D)Technological and legal
E)Economic and political

Question 49

If China, in an attempt to bolster the sales of its own auto manufacturers, decided to limit the number of automobiles that could be brought in from other countries, China would be using a(n)

A)embargo.
B)boycott.
C)exchange control.
D)import tariff.
E)quota.

Question 50

The ____ is the difference in value between a nation's exports and its imports.

A)net trade value
B)export/import ratio
C)gross domestic product
D)balance of payments
E)balance of trade

Question 51

When a glove manufacturer in China is allowed to sell only a certain number of plastic gloves to Japan, that firm is facing a(n)

A)tariff.
B)embargo.
C)restrictive product standard.
D)quota.
E)balance of trade restriction.

Question 52

Which of the following countries has the highest GDP?

A)Japan
B)China
C)the United Kingdom
D)the United States
E)Canada

Question 53

If a certain country considered handshakes in business transactions to be taboo and preferred to use nodding, this would be an example of differences in ____ forces.

A)sociocultural
B)political
C)sales
D)ethical
E)regulatory

Question 54

Select the true statement.

A)Legislation regulating marketing in many foreign countries is being eased.
B)A government's attitude toward cooperation with importers has little impact on marketing to that country.
C)Refusing to give payoffs and bribes in some foreign countries may put a marketer at a competitive disadvantage.
D)Bribes and payoffs are considered unethical in all countries and cultures.
E)Bribes and payoffs are supported by U.S. trade policies under certain conditions.

Question 55

If Tasmania levied a duty on all goods purchased from the United States and other countries outside its borders that were brought into Tasmania, its businesses and citizens would be paying a(n)

A)embargo.
B)import tariff.
C)travelers' tax.
D)export tax.
E)foreign duty.

Question 56

In considering the viability of potential international markets for Coca-Cola products, the Coca-Cola Company is advised to take into account ____, which provides insight into market potential.

A)per capita gross domestic product
B)gross domestic product
C)the quantity of exports
D)the quantity of imports
E)total consumer income

Question 57

The Foreign Corrupt Practices Act of 1977 makes it illegal for U.S. firms to

A)attempt to make large payments or bribes to influence policy decisions of foreign governments.
B)offer foreign businesses any type of incentive for purchasing their company's products and services.
C)change their ethical standards when dealing with foreign firms.
D)give even small tips or gifts in countries where such gifts are customary business practices.
E)introduce any type of corruption into foreign businesses that have higher ethical standards than those of the U.S. firm.

Question 58

The United States' former prohibition against importing cigars from Cuba for resale was an example of a(n)

A)health control.
B)quota.
C)embargo.
D)exchange control.
E)import control.

Question 59

Government restrictions on the amount of a particular country's currency that can be bought or sold are known as

A)embargoes.
B)quotas.
C)exchange controls.
D)import controls.
E)balance of trade controls.

Question 60

The gross domestic product is

A)a measure of the profit made by all firms in a nation.
B)the average annual earnings per person in a nation.
C)a measure of the types of products produced by a nation.
D)an overall measure of a nation's economic standing.
E)a ratio of domestic products to products produced in foreign countries.

Question 61

If a newly formed country wanted to increase its international trade and reduce worldwide tariffs, it would most likely try to become a part of

A)NAFTA.
B)WTO.
C)MERCOSUR.
D)APEC.
E)EU.

Question 62

The term dumping refers to the sale of

A)products sold in foreign markets that cannot be sold in the United States.
B)products sold in foreign markets at prices above those charged in the United States.
C)all discontinued U.S. products in foreign countries.
D)products sold in foreign countries at unfairly low prices.
E)products sold in foreign markets that cannot pass safety standards in the United States.

Question 63

One of the effects of NAFTA is the simplification of country-of-origin rules. This will likely hinder the international trade activities of

A)Canada.
B)Japan.
C)Brazil.
D)Cuba.
E)Panama.

Question 64

Another name for the European Union is

A)the Common Market.
B)the European Market.
C)the Euro.
D)NAFTA.
E)AECO.

Question 65

The unification of Europe through the European Union (EU)

A)produced the largest single market in the world.
B)calls for greater customization of products and attention to regulations and restrictions of European countries.
C)means that members of the EU have become more heterogeneous in their needs and wants.
D)required the countries to be segmented into many different markets.
E)permits virtually free trade among the member nations of the EU.

Question 66

Maquiladoras are

A)exchange controls from central banks in Latin American countries.
B)production facilities in north-central Mexican states.
C)import-export agents of the Mexican government.
D)global marketing programs established in Latin American countries.
E)freight forwarders from Mexico.

Question 67

The trade alliance that includes Brazil, Argentina, Chile, and other countries is known as

A)OPEC.
B)APEC.
C)MERCOSUR.
D)NAFTA.
E)the Common Market.

Question 68

______ expect to be able to buy the same product in most of the world's countries, and also that the products they buy in their local store will have the same features as similar products sold abroad.

A)Global customers
B)Born globals
C)American consumers
D)Baby Boomers
E)Generation Xers

Question 69

The Southern Common Market (MERCOSUR) includes

A)countries from southern Africa.
B)both India and Indonesia.
C)Australia and New Zealand.
D)countries in South America.
E)southern China and India.

Question 70

Which of the following agreements provides a forum for tariff negotiations, reducing trade restrictions, resolution of international trade problems, and ground rules for international trade?

A)The World Trade Organization
B)The North American Free Trade Agreement
C)The Latin American Free Trade Agreement
D)The European Union Free Trade Agreement
E)The General Agreement on Tariffs and Trade

Question 71

Which of the following alliances/agreements is the United States not a part of?

A)NAFTA
B)APEC
C)GATT
D)WTO
E)MERCOSUR

Question 72

Many marketers claim that ____ will become the world's largest market.

A)Japan
B)the United States
C)China
D)Thailand
E)India

Question 73

The World Trade Organization accomplishes all of the following except

A)educating companies about international trade rules.
B)lending money to businesses interested in developing international markets.
C)serving as a forum for trade negotiations.
D)helping settle trade disputes.
E)providing legal ground rules for international commerce.

Question 74

The agreement between the United States, Canada, and Mexico that merges these three countries into one marketplace is called

A)EU.
B)MERCOSUR.
C)APEC.
D)NAFTA.
E)GATT.

Question 75

Walmart is currently expanding its stores into Canada and Mexico. This expansion is being facilitated by the

A)European Union.
B)North American Free Trade Agreement.
C)Pacific Rim Unification Act.
D)International Retail Alliance Association.
E)Latin American Free Trade Association.

Question 76

Which of the following differs from other international trade alliances in its commitment to facilitating business and its practice of allowing the business/private sector to participate in a wide range of its activities?

A)NAFTA
B)MERCOSUR
C)APEC
D)OPEC
E)The Common Market

Question 77

Most of Latin America-including the nations of MERCOSUR-is dependent on the price of

A)services.
B)ideas.
C)luxury brands.
D)oil.
E)commodities.

Question 78

Most European countries use a common currency, the

A)yen.
B)euro.
C)dollar.
D)pound.
E)lira.

Question 79

____ refers to the idea that morality varies from one culture to another and that business practices are therefore differentially defined as right or wrong by particular cultures.

A)The self-reference criterion
B)Global ethics
C)Economic relativism
D)Cultural relativism
E)Moral relativism

Question 80

Which of the following is not true of NAFTA?

A)The agreement has a long adjustment phase-in time period.
B)Increased competition should lead to a more efficient market.
C)It will provide additional opportunities for the United States in long-term affiliations with other countries in the Western Hemisphere.
D)It provides protection for intellectual property among its members.
E)Business licensing requirements have been increased.