Deck 3: Thrive in the Marketing Environment: the World Is Flat

Question 1

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

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

Answer 1

B

Question 2

Marketers need to understand the ________ environment of a country from two perspectives: the overall level of development of a country and the current stage of its business cycle.

A)political and legal
B)sociocultural
C)economic
D)technological
E)natural

Answer 2

C

Question 3

NAFTA is a(n)________.

A)South American economic community
B)common market for eastern and southern Africa
C)economic community that includes Peru,Brazil,and China
D)trade agreement that includes Canada,Mexico,and the United States
E)eastern European economic community that competes with the EU

Answer 3

D

Question 4

Trading firms that work out elaborate deals in which they trade or barter their products with one another or even supply goods in return for tax breaks from the local government are using ________.

A)protectionism
B)competitive intelligence
C)gray marketing
D)countertrade
E)inflation

Question 5

________ refers to the total value of all the exports and imports of the world's nations.

A)Countertrade
B)International marketing
C)Gross national product
D)Gross domestic product
E)World trade

Question 6

About three-fourths of the membership of the WTO comes from ________.

A)the world's poorer countries
B)the world's most developed countries
C)EU countries
D)NAFTA countries
E)MERCOSUR countries

Question 7

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

A)Gross national product (GNP)
B)The inflation rate
C)Gross domestic product (GDP)
D)The business cycle
E)Economic infrastructure

Question 8

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 countries that belong to established economic communities are granted membership in the WTO.
C)Only developed nations are granted membership to the WTO.
D)The WTO's main function is to help least developed countries grow their economies.
E)The WTO is the only international organization that deals with the global rules of trade between nations.

Question 9

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

A)is composed of ten developed nations who make trade decisions for all other countries
B)was created by the United States shortly after World War II
C)is an example of a regional economic community
D)led to the creation of the WTO
E)sets international import quotas

Question 10

Which of the following countries is NOT a member of MERCOSUR?

A)Brazil
B)Paraguay
C)Bolivia
D)Uruguay
E)Venezuela

Question 11

A(n)________ is an extreme quota that completely prohibits commerce and trade with a specific country.

A)tariff
B)embargo
C)protectionist quota
D)perfect monopoly
E)expropriation

Question 12

When a government adopts a policy of ________,it enforces rules on foreign firms in order to give home companies an advantage.

A)gray marketing
B)countertrade
C)monopolistic competition
D)economic sanctions
E)protectionism

Question 13

A(n)________ is a group of countries that have agreed to coordinate trade policies and ease restrictions on the flow of products and capital across members' borders.

A)monopoly
B)free trade zone
C)economic community
D)oligopoly
E)economic infrastructure

Question 14

Which of the following is the first step a firm should take when deciding whether or not to go global?

A)Develop marketing mix strategies for foreign markets.
B)Analyze whether it is in the firm's best interest to focus on the domestic market or to expand to international markets.
C)Identify the most attractive global markets for the firm's products.
D)Select a market-entry strategy that fits the firm's desired level of commitment.
E)Identify potential partners in international markets.

Question 15

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

A)monopoly
B)quota
C)tariff
D)oligopoly
E)embargo

Question 16

The Euro is the currency used by ________.

A)NAFTA
B)MERCOSUR
C)the EU
D)the WTO
E)GATT

Question 17

Which of the following countries has the largest total GDP?

A)China
B)Japan
C)the United States
D)Spain
E)Hungary

Question 18

Coca-Cola sold its drinks in Russia for years in exchange for vodka.This is an example of a(n)________.

A)joint venture
B)direct investment
C)countertrade
D)import quota
E)licensing agreement

Question 19

Which of the following measures is often a good indicator of a country's economic health because it is adjusted for the population size of each country?

A)per capita GDP (gross domestic product)
B)GNP (gross national product)
C)the Big Mac Index
D)standard of living
E)economic infrastructure

Question 20

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

A)gross domestic product (GDP)
B)gross national product (GNP)
C)exchange rate
D)cost of living
E)Big Mac Index

Question 21

Which of the following occurs when prices and the cost of living rise while money loses its purchasing power?

A)prosperity
B)recovery
C)inflation
D)deflation
E)a depression

Question 22

Which of the following best explains why marketers are attracted to the BRIC countries?

A)These countries have long-established upper classes that form a strong market for luxury goods.
B)These countries are quickly moving from being least developed to developing countries.
C)These countries have masses of consumers who are not yet wealthy but are quickly moving to economic prosperity.
D)These countries offer large markets with no language or cultural barriers.
E)These countries wield the most power in the Group of Eight.

Question 23

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

A)level of economic development
B)standard of living
C)gross domestic product (GDP)
D)economic infrastructure
E)business cycle

Question 24

In a(n)________ structure,one seller controls a market.

A)monopoly
B)oligopoly
C)monopolistic competition
D)perfect competition
E)natural competition

Question 25

Through ________ activities,a firm gathers and analyzes publicly available information about rivals.

A)economic infrastructure
B)competitive intelligence
C)demographic
D)perfect competition
E)business cycle

Question 26

________ income is the amount of money an individual has left to spend after paying for necessities such as housing,utilities,food,and clothing.

A)Discretionary
B)Gross product
C)Standard of living
D)Inflationary
E)Competitive

Question 27

In most cases,which of the following is true about a least developed country (LDC)?

A)It has an economy based on agriculture.
B)It is by definition landlocked.
C)It has a viable middle class.
D)It has high literacy levels.
E)It has an advanced economic infrastructure.

Question 28

In a(n)________ structure,there are many sellers,each having slightly different products and each having only a small share of the market.

A)monopoly
B)oligopoly
C)monopolistic competition
D)perfect competition
E)natural competition

Question 29

Which of the following is most characteristic of a developing country?

A)The country is moving away from an economy based on industry.
B)The market for consumer goods present little growth potential.
C)The nation has an economy based on agriculture.
D)The country has a significant middle class.
E)The country has an economy based on exporting services.

Question 30

Which of the following is NOT among the largest of the world's developing countries?

A)Brazil
B)Russia
C)India
D)Canada
E)China

Question 31

Through ________ competition,competitors offer different products,attempting to satisfy the same consumers' needs and wants.

A)discretionary income
B)product
C)brand
D)monopolistic
E)oligopolistic

Question 32

In a(n)________ structure,there are a relatively small number of sellers,each holding substantial market share,in a market with many buyers.

A)monopoly
B)oligopoly
C)monopolistic competition
D)perfect competition
E)natural competition

Question 33

Firms are constantly scanning the ________ environment in search of ideas and trends that can spark their own research efforts.Sometimes an idea can transform an industry,such as transistors revolutionizing the field of consumer electronics.

A)political and legal
B)sociocultural
C)economic
D)technological
E)natural

Question 34

The United States,the United Kingdom,Australia,Canada,France,Italy,Germany,and Japan are all members of ________.

A)the BRIC countries
B)the Group of Eight
C)the EU
D)NAFTA
E)APEC

Question 35

In a(n)________ structure,there are many small sellers,each having similar products,and each unable to have a significant impact on the quality,price,or supply of a product.

A)monopoly
B)oligopoly
C)monopolistic competition
D)perfect competition
E)natural competition

Question 36

The YMCA and Gold's gym engage in ________ competition when they both try to attract customers to buy their fitness center services.

A)discretionary income
B)product
C)brand
D)monopolistic
E)oligopolistic

Question 37

France,Italy,and Germany boast sophisticated marketing systems and are three good examples of ________.

A)preindustrial countries
B)least developed countries (LDCs)
C)developing countries
D)developed countries
E)BRIC countries

Question 38

A country's ________ indicates the average quality and quantity of goods and services consumed within the country.

A)economic infrastructure
B)standard of living
C)gross domestic product (GDP)
D)gross national product (GNP)
E)business cycle

Question 39

The ________ environment refers to the local,state,national,and global laws and regulations that affect businesses.

A)political and legal
B)sociocultural
C)economic
D)technological
E)natural

Question 40

A severe recession is a depression,a period in which prices fall but there is little demand because few people have money to spend and many are out of work.This condition is part of ________.

A)the competitive environment
B)the business cycle
C)the technological environment
D)demographics
E)social norms

Question 41

The ________,a United States regulatory agency,regulates telephone,radio,and television.This affects all firms that use broadcast media.

A)Consumer Product Safety Commission
B)Environmental Protection Agency
C)Federal Communications Commission
D)Federal Trade Commission
E)Interstate Commerce Commission

Question 42

Through the U.S.Generalized System of Preferences (GSP),developing countries may export goods duty-free to the United States if they ________.

A)demonstrate progress toward protecting the natural environment
B)demonstrate progress toward improving the rights of their workers
C)agree to exempt U.S.imports from local content rules
D)belong to the World Trade Organization (WTO)
E)participate in a reciprocal free trade zone

Question 43

In a(n)________ culture,people tend to attach more importance to personal goals than to the needs of the larger community.

A)collectivist
B)individualist
C)democratic
D)demographic
E)sociocultural

Question 44

Expropriation occurs when a government ________.

A)reimburses a foreign company for its assets after taking over the company
B)reimburses a foreign company that has lost facilities due to natural causes
C)refuses to allow its businesses to engage in exporting
D)takes over a foreign operation and provides the seized operation with no reimbursement
E)imports more than it exports

Question 45

The ________ (2003)was established by the Federal Trade Commission to allow consumers to limit the number of telemarketing calls they receive.

A)National Do Not Call Registry
B)Child Protection Act
C)Federal Communications Commission
D)Consumer Products Safety Commission Act
E)Robinson-Patman Act

Question 46

Nationalization occurs when a government ________.

A)reimburses a foreign company for its assets after taking over the company
B)reimburses a foreign company that has lost facilities due to natural causes
C)refuses to allow its businesses to engage in exporting
D)takes over a foreign operation and provides the seized operation with no reimbursement
E)imports more than it exports

Question 47

________ is the belief that one's own norms and the products made in one's own country are superior.

A)Nationalization
B)Ethnocentrism
C)Domestication
D)Expropriation
E)Democratization

Question 48

The ________,a United States regulatory agency,protects the public from potentially hazardous products.

A)Consumer Product Safety Commission
B)Environmental Protection Agency
C)Federal Communications Commission
D)Federal Trade Commission
E)Interstate Commerce Commission

Question 49

The ________ Act (1914)created the regulatory body that enforces laws against deceptive advertising and product labeling regulations.

A)Federal Trade Commission
B)Lanham Trademark
C)Fair Packaging and Labeling
D)Consumer Products Safety Commission
E)Robinson-Patman

Question 50

Every society has a set of deeply held beliefs about right and wrong ways to live,which are referred to as ________.

A)demographics
B)social norms
C)cultural dimensions
D)cultural values
E)customs

Question 51

The ________ was developed to eliminate monopolies and to guarantee free competition.

A)Sherman Antitrust Act
B)Clayton Act
C)Robinson-Patman Act
D)Wheeler-Lea Act
E)Lanham Trademark Act

Question 52

The ________ Act (1968)requires full disclosure of loan terms and rates for borrowers.

A)Federal Trade Commission
B)Lanham Trademark
C)Fair Packaging and Labeling
D)Consumer Credit Protection
E)Robinson-Patman

Question 53

In a(n)________ culture,people tend to subordinate their personal goals to those of a stable community.

A)collectivist
B)individualist
C)democratic
D)demographic
E)ethnocentric

Question 54

Which of the following is a form of protectionism?

A)joint ventures
B)bribery
C)extortion
D)collectivism
E)local content rules

Question 55

Specific rules that dictate what is acceptable or unacceptable within a society are referred to as ________.

A)demographics
B)cultural values
C)cultural dimensions
D)social norms
E)ethnocentric standards

Question 56

The ________ environment refers to the characteristics of a society,the people who live in the society,and the culture that reflects the values and beliefs of the society.

A)political and legal
B)sociocultural
C)economic
D)technological
E)natural

Question 57

________ occurs when someone voluntarily offers payment to get an illegal advantage.

A)Nationalization
B)An economic sanction
C)Bribery
D)Expropriation
E)Extortion

Question 58

The ________ Act (1946)protects and regulates brand names.

A)Federal Trade Commission
B)Lanham Trademark
C)Fair Packaging and Labeling
D)Consumer Products Safety Commission
E)Robinson-Patman

Question 59

The ________,a United States regulatory agency,enforces laws and regulations on foods,drugs,cosmetics,and veterinary products.Marketers of pharmaceuticals must get approval from this agency before introducing products to the market.

A)Food and Drug Administration
B)Environmental Protection Agency
C)Federal Communications Commission
D)Federal Trade Commission
E)Consumer Product Safety Commission

Question 60

________ are statistics that measure aspects of population,such as size,age,and gender.

A)Demographics
B)Norms
C)Cultural dimensions
D)Standards
E)Mores

Question 61

In a ________,a firm gives another firm the right to produce and market its product in a specific country or region in return for royalties on goods sold.

A)licensing agreement
B)strategic alliance
C)joint venture
D)marketing mix alliance
E)direct investment

Question 62

Which of the following often take the form of a joint venture?

A)licensing agreements
B)franchising agreements
C)export-import alliances
D)strategic alliances
E)expropriation agreements

Question 63

A ________ exists when an unauthorized party imports products and then sells them for a fraction of the price of authorized products.

A)gray market
B)dual distribution system
C)disintermediation system
D)black market
E)dumping ground

Question 64

According to Transparency International,firms from which of the following countries are LEAST likely to pay bribes?

A)Germany
B)the United Kingdom
C)China
D)Mexico
E)Canada

Question 65

Franchising is a form of ________.

A)importing
B)tactical alliance
C)licensing
D)joint venture
E)direct investment

Question 66

After exporting,the next level of commitment a firm can make to a foreign market is a contractual agreement.Two of the most common types of such agreements are ________.

A)contract manufacturing and contract marketing
B)contract manufacturing and strategic alliances
C)joint ventures and franchising
D)warehousing and financing
E)licensing and franchising

Question 67

When considering the Four Ps in international marketing,advocates of ________ focus on the similarities among cultures and argue that basic needs and wants are the same everywhere.

A)nationalization
B)standardization
C)localization
D)expropriation
E)ethnocentricism

Question 68

Small firms that wish to export their products may choose to use ________ who understand the local market and will find buyers and negotiate terms on the firm's behalf.

A)direct investors
B)franchisees
C)export merchants
D)franchisors
E)free traders

Question 69

In February 2000,the United States imposed a tax on imported steel in an effort to protect about 5,000 U.S.jobs.Another name for this levied tax is a(n)________.

A)embargo
B)gray tax
C)tariff
D)import quota
E)boycott

Question 70

Which of the following is true about the market entry strategy of direct investment?

A)It allows a foreign firm to take advantage of a domestic company's political savvy and market position.
B)It relies on export merchants to analyze the local market.
C)It provides the lowest level of risk for a firm.
D)It relies on intermediaries to represent the company in a target country.
E)It provides the lowest level of control for a firm.

Question 71

A firm's ________ decisions when selling in a foreign market are straight extension,adaptation,and invention.

A)advertising
B)product
C)brand
D)marketing mix
E)distribution

Question 72

When considering the Four Ps in international marketing,advocates of ________ focus on the unique characteristics of cultures and argue for products and promotional messages tailored to each culture.

A)nationalization
B)standardization
C)localization
D)expropriation
E)ethnocentricism

Question 73

U.S.sugar import quotas have existed for more than fifty years and preserve about half of the U.S.sugar market for domestic producers.These quotas are examples of ________.

A)embargoes
B)nationalization
C)protectionism
D)expropriation
E)disintermediation

Question 74

U.S.sugar import quotas have existed for more than fifty years and preserve about half of the U.S.sugar market for domestic producers.Why does the United States continue to have these quotas?

A)to reduce competition for its domestic sugar industry
B)to increase the cost of sugar
C)to control the supply and demand for sugar
D)to support a mass market for sugar
E)to improve the promotion of sugar

Question 75

Members of management at Growing Green,a company that markets organic and environmentally friendly gardening and landscaping supplies and equipment,are evaluating the benefits and disadvantages of indirect exporting,direct exporting,and licensing.In which stage of the international marketing process is Growing Green?

A)deciding whether to go global
B)deciding which global markets are most attractive
C)deciding which market-entry strategy is best
D)deciding on the marketing mix strategies for foreign markets
E)deciding on the global marketing organization

Question 76

All of the following are barriers to successful exporting except ________.

A)tariffs
B)local content laws
C)import quotas
D)export merchants
E)economic sanctions

Question 77

A firm would be most likely to use backward invention in which of the following situations?

A)when it needs to offer a less complex product in a foreign market than it sells elsewhere
B)when it has decided to rely on a straight extension strategy
C)when it first markets a product internationally
D)when it participates in a free trade zone
E)when it relies on the practice of dumping

Question 78

Many countries outlaw ________,a practice in which a company prices its products lower than they are priced at home.

A)gray marketing
B)parallel importing
C)black marketing
D)dumping
E)countertrading

Question 79

________ occurs when someone in authority extracts payment under duress.

A)Nationalization
B)An economic sanction
C)Bribery
D)Expropriation
E)Extortion

Question 80

Azerbaijan imported wheat from Romania in exchange for crude oil and Vietnam exchanged rice for Philippine fertilizer and coconuts.Both scenarios are examples of which of the following?

A)convertible trade
B)tariffs
C)quotas
D)protectionism
E)countertrade