Deck 3: Thriving in the Marketing Environment: The World Is Flat

Question 1

World trade activity has been rapidly declining over the last twenty years.

Answer 1

False

Question 2

Which of the following is part of a foreign market's economic environment?

A)Population growth and size
B)Political stability
C)Regulatory issues
D)Symbols and superstitions
E)Competitive advantage

Answer 2

A

Question 3

Which of the following statements about companies that export is true?

A)They expand sales by selling the same product they offer in their domestic markets.
B)They change products to fit each new market.
C)They generally use the same marketing strategies wherever they do business.
D)A and C
E)A and B

Answer 3

D

Question 4

Which of the following is not part of a foreign market's cultural environment?

A)Ethnocentricity
B)Symbols and superstitions
C)Values
D)Political stability
E)Norms and customs

Question 5

The first step in deciding whether and how to go global is to ________.

A)establish a research budget
B)hire someone with experience to manage the global operations
C)create broader marketing objectives
D)examine basic market conditions including domestic demand,market potential abroad,and the firm's ability to achieve competitive advantages
E)create an internationalised mission statement

Question 6

Which of the following is part of a foreign country's market conditions?

A)Market potential abroad
B)Domestic demand
C)Competitive advantage
D)A,B and C
E)None of the above

Question 7

Logitech International is a Swiss company that from its inception sold its product worldwide with operational headquarters in California and regional headquarters in Switzerland,Taiwan,and Hong Kong.

A)born-global firm
B)strategic alliance organisation
C)socially responsible firm
D)licensing firm
E)None of the above

Question 8

PepsiCo has been selling its products in Russia for years in exchange for Stolichnaya vodka that it then sells in other markets.

A)licensing agreement
B)joint venture
C)slotting allowance
D)import agreement
E)countertrade

Question 9

Trading firms are practicing ________ when they work out elaborate deals in which they trade or barter their products with each other or even supply goods in return for tax breaks from the local government.

A)puffery
B)cultural
C)countertrade
D)grey marketing
E)cause marketing

Question 10

Which of the following is part of a foreign market's political/legal environment?

A)Norms and customs
B)Domestic demand
C)Regulatory issues
D)Language
E)Gross domestic product

Question 11

Which of the following statements about global marketing is not true?

A)Wrong decisions in the global marketplace can be disastrous.
B)Differences in customs and consumer preferences often require variations in marketing plans.
C)Differences in national laws often require variations in marketing plans.
D)Competition comes from foreign firms only.
E)The greater the risk,the greater the reward.

Question 12

With countertrade,goods are paid for with other items instead of cash.

Question 13

When entering foreign markets,marketers must analyse which of the following?

A)The economic environment
B)The political/legal environment
C)Market conditions
D)The cultural environment
E)All of the above

Question 14

The simplest and easiest way to enter a global marketplace is by ________.

A)exporting
B)joint ventures
C)having low prices
D)creating a killer product
E)importing

Question 15

Which of the following statements about world trade is true?

A)World trade includes the value of all exports and imports of the world's nations.
B)World trade refers to the flow of goods and services among different countries.
C)World trade activity is steadily recovering from the latest global financial crisis.
D)Not all countries participate equally in world trade.
E)All of the above

Question 16

When a currency cannot be exchanged outside a country's borders,it is considered ________.

A)non-transferable
B)negative foreign exchange
C)of no commercial value
D)not convertible
E)not exchangeable

Question 17

With global marketing,the lower the risk,the greater the reward.

Question 18

Which of the following is part of a foreign market's cultural environment?

A)Population growth and size
B)Competitive advantage
C)Political stability
D)Symbols and superstitions
E)Regulatory issues

Question 19

Companies that deliberately try to sell their products in multiple countries from the moment they are created are called ________.

A)global conglomerates
B)born-global firms
C)born-again firms
D)global neophytes
E)new age international companies

Question 20

To be successful in creating competitive advantage in international markets companies must ________.

A)realise local companies may have 'home court advantage'
B)capitalise on their home country's assets
C)avoid competing in areas in which they are at a disadvantage
D)realise there are more players involved
E)All of the above

Question 21

Born-global firms sell first in their home markets and when those markets are saturated they look offshore.

Question 22

Economic communities set policies that affect ________.

A)product content
B)advertising regulations
C)package labelling
D)A,B and C
E)B and C

Question 23

Local firms often have 'home-ground advantage' over international competitors.

Question 24

A country puts quotas on imported rice,preserving approximately half of the market for domestic producers.

A)To reduce competition for its domestic rice industry
B)To control the supply and demand for rice
C)To support a mass market for rice
D)To decrease the cost of rice
E)All of the above

Question 25

How might developing countries such as those in Latin America and Asia gain competitive advantage for local companies?

Question 26

Groups of countries that band together to promote trade amongst themselves and to make it easier for member nations to compete elsewhere are called ________.

A)common markets
B)economic communities
C)economic infrastructures
D)commons unions
E)economic co-operative

Question 27

Country A and Country B want to ensure that each other's goods enter their markets exempt from all regulation,so they sign a/n ________.

A)free trade agreement
B)grey tax reduction agreement
C)import quota reduction agreement
D)non-boycott agreement
E)tariff reduced zone agreement

Question 28

What challenges might a company face and what are the strategies it could adopt in trying to obtain competitive advantage in the global marketplace?

Question 29

What would it mean to a West African country like Burkina Faso,one of the world's poorest countries,if its currency was not convertible?

Question 30

In some cases a government adopts a policy of ________ in which it enforces rules on foreign firms designed to give home companies an advantage.

A)bribery
B)countertrade
C)protectionism
D)slotting allowance
E)green marketing

Question 31

The purpose of a government-imposed ________ is to give domestic competitors an advantage in the marketplace by making foreign competitors' goods more expensive than their own goods.

A)embargo
B)standard count number
C)quality standard
D)foreign communication barrier
E)tariff

Question 32

A/n ________ is an extreme form of quota that prevents the importing of specified foreign goods completely.

A)embargo
B)supply-based infrastructure
C)barrier to trade
D)grey tax
E)export prohibition

Question 33

Why might companies in a West African country like Burkina Faso,one of the world's poorest countries,engage in countertrade?

Question 34

The General Agreement on Tariffs and Trades (GATT)________.

A)continually monitors the international market encouraging business corruption
B)did a lot to reduce the problem protectionism creates
C)was established by the United States shortly after World War II
D)is composed of ten developed nations who make trade decisions for all other countries
E)All of the above

Question 35

Which of the following statements about the World Trade Organization (WTO)is true?

A)The WTO is a branch of the U.S.government.
B)Only developed nations belong to the WTO.
C)The WTO's two voting members make all decisions.
D)Membership in the WTO is only available to wealthy nations.
E)None of the above

Question 36

MERCOSUR,the ASEAN,and the EU are all examples of ________.

A)economic communities
B)import/export infrastructures
C)expropriating agencies
D)extended trade zones
E)nationalised organisations

Question 37

Countries often use ________ to stop the importation of particular products because they are produced or distributed by countries with which they do not have a good relationship.

A)barriers to entry
B)export prohibitions
C)embargoes
D)grey taxes
E)supply-based infrastructures

Question 38

________ are limitations on the amount of a product allowed to enter or leave a country.

A)Tariffs
B)Embargos
C)Import quotas
D)Export quotas
E)Marketing quotas

Question 39

One important issue tackled by the WTO is ________.

A)protection of franchise operations
B)protection of favoured nation status
C)protection of copyright and patent rights
D)protection of taxation systems
E)protection of the environment

Question 40

Countries often impose import quotas on foreign goods to reduce competition for domestic industries.

A)disintermediation
B)protectionism
C)world-centrism
D)a political asylum
E)synergistic manipulation

Question 41

Discuss why countries might form economic communities and explain how their policies are advantageous to marketers.

Question 42

Discuss the role played by the General Agreement on Tariffs and Trade (GATT)and the World Trade Organization (WTO).

Question 43

The World Trade Organization (WTO)was created to help international trade flow more freely.

Question 44

Quotas,embargoes and tariffs are forms of protectionism.

Question 45

The member nations of NAFTA are ________.

A)Canada and the United States
B)Canada,Hong Kong and the United States
C)Canada,Mexico and the United States
D)Mexico,Brazil and the United States
E)Mexico and the United States

Question 46

Discuss the concept of protectionism.Why might a country choose to adopt protectionist policies? Why might a country choose to not adopt protectionist policies? Illustrate using examples.

Question 47

One of the important issues the World Trade Organization (WTO)tackles is the pursuit of human rights.

Question 48

Canada decides to impose a tariff on selected Chinese textiles and shoes when its trade deficit with China grows too large.What would Canada be hoping to achieve with these actions?

Question 49

Each industry sets import quotas for their products to determine their yearly production volume.

Question 50

Governments use tariffs to give domestic competitors an advantage in the marketplace by making foreign competitors' goods more expensive.

Question 51

Governments often adopt protectionist policies in an effort to protect domestic industries or give them an advantage.

Question 52

How might companies such as Microsoft or Disney benefit from the World Trade Organization's moves to protect copyright and patent rights?

Question 53

Malaysia,Indonesia,Singapore,Laos,and Cambodia all are members of ________.

A)ASEAN
B)MERCOSUR
C)the ALADI
D)NAFTA
E)the Andean Group

Question 54

Which of the following statements about the European Union (EU)is true?

A)Every country in Europe and Eastern Europe is a member of the EU.
B)The EU is an example of an economic community.
C)In the beginning,the European Union had more than twenty member nations.
D)Every country uses the same currency - the euro.
E)None of the above

Question 55

The World Trade Organization (WTO)does not deal with issues concerning the protection of copyright and patent rights.

Question 56

How and why would a country like Russia protect its domestic meat production industry?

Question 57

What benefits would marketers obtain if the countries in which they sell their goods form economic communities?

Question 58

Three member countries of the North American Free Trade Agreement (NAFTA)are the United States,Canada,and Brazil.

Question 59

The members of the organisation MERCOSUR are located in ________.

A)North America
B)the British Isles
C)South America
D)Africa
E)Southeast Asia

Question 60

What benefits does the European Union provide member countries and consumers?

Question 61

Customs,mores and conventions are examples of ________.

A)regulations
B)cultural guidelines
C)cultures
D)cultural prohibitions
E)norms

Question 62

In most cases,a less developed country ________.

A)has a visible middle class
B)has a large number of entrepreneurs
C)has an advanced economic infrastructure
D)is by definition landlocked
E)has an economy based on agriculture

Question 63

Cultures that tend to subordinate their personal goals for those of a stable community are referred to as ________.

A)responsible cultures
B)group-oriented cultures
C)reactionary cultures
D)collectivist cultures
E)individualist cultures

Question 64

Per capita GDP is ________.

A)of no interest to marketers
B)calculated by dividing gross domestic product by the average price of housing
C)a key indicator of economic infrastructure
D)only of interest to bankers
E)calculated by dividing gross domestic product by the country's population

Question 65

Estonia is a developing country.

A)it has an economy based only on providing services
B)the nation has an economy based on agriculture
C)the nation's wealth is in the hands of a few
D)its use of technology is very limited
E)it has a middle class composed primarily of entrepreneurs

Question 66

Which of the following is a form of protectionism?

A)Parliamentarian laws
B)Disintermediation
C)Local content rules
D)Comparative advertising
E)Direct investment opportunities

Question 67

A country's deeply held beliefs about right and wrong ways to live are referred to as ________.

A)conventions
B)norms
C)mores
D)customs
E)cultural values

Question 68

The population of Djibouti is approximately 460,700.

A)net national product (NNP)
B)gross domestic product (GDP)
C)economic liquidity
D)level of commercialisation
E)economic infrastructure

Question 69

France,Italy,and Germany boast sophisticated marketing systems and strong market potential.

A)preindustrial countries
B)less developed countries
C)traditional societies
D)developed countries
E)industrialising countries

Question 70

________ measures the value of all goods and services produced by a country's individuals or organisations whether within the country's borders or not.

A)Demand elasticity
B)Gross national product (GNP)
C)Gross domestic product (GDP)
D)Production quantity
E)The level of economic commercialisation

Question 71

The most commonly used measure of economic health of a country is the ________.

A)gross national product (GNP)
B)stock market
C)average price of the same product over one year
D)cost of living
E)gross domestic product (GDP)

Question 72

The quality of a country's distribution,financial,and communication systems is referred to as its ________.

A)ethnocentrism
B)foreign trade benefits
C)economic infrastructure
D)norms and customs
E)standard of living

Question 73

Venezuela,Taiwan and Thailand are examples of ________.

A)collectivist cultures
B)responsible cultures
C)reactionary cultures
D)group-oriented cultures
E)individualist cultures

Question 74

Kyrgyzstan is a past member of the Soviet Union.

A)less developed country
B)industrialising country
C)traditional society
D)developed country
E)preindustrial country

Question 75

Prior to the creation of the European Union (EU),the German government required all foreign and domestic beer manufacturers who wished to sell to the German market to contain a high percentage of German-grown hops.

A)80/20 rule
B)local content rule
C)export quota
D)import quota
E)environmental protection law

Question 76

Exploiting workers and keeping costs down by using child labour are examples of ________ that concern governments and companies.

A)human rights issues
B)competitive advantage issues
C)cost of labour issues
D)production issues
E)productivity issues

Question 77

Cultures that tend to attach more importance to personal goals and will change group memberships when the demands of the group become too costly are referred to as ________.

A)individualist cultures
B)collectivist cultures
C)reactionary cultures
D)self-oriented cultures
E)responsible cultures

Question 78

Countries often impose ________to prohibit trade with another country.

A)legal sanctions
B)economic sanctions
C)cultural sanctions
D)regulatory sanctions
E)political sanctions

Question 79

Liberia,Vietnam,and Mexico have a visible middle class that is largely composed of entrepreneurs who are working hard to run successful small businesses.

A)industrialising countries
B)traditional societies
C)developing countries
D)less developed countries
E)preindustrial countries

Question 80

New Zealand,Australia and Canada are examples of ________.

A)collectivist cultures
B)individualist cultures
C)responsible cultures
D)group-oriented cultures
E)reactionary cultures