Question 1

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.

Accepted Answer

The given scenario describes a licensing agreement, where one firm (the licensor) gives another firm (the licensee) the right to produce and market its product in a specific country or region in return for royalties on goods sold. Strategic alliance involves a partnership between two or more firms to achieve a specific goal, while a joint venture refers to a separate company created and jointly owned by two or more independent entities. Marketing mix alliance and direct investment are not relevant to the given scenario.

Question 2

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

Accepted Answer

Strategic alliances often take the form of a joint venture where two or more companies come together to pursue a specific project or goal while maintaining their individual identities. Licensing agreements involve one company giving another company the right to use its intellectual property, while franchising agreements involve a company giving another company the right to use its business model and brand name. Export-import alliances involve companies working together to facilitate the import or export of goods, while expropriation agreements involve a government taking control of a company's assets.

Question 3

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

Accepted Answer

A gray market exists when unauthorized parties import products and then sell them for a fraction of the price of authorized products. This can happen when there are price differences between different regions or countries, and gray market sellers take advantage of these differences. It is illegal and can damage the brand's reputation and relationship with authorized distributors.

Question 4

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

Accepted Answer

The answer of According to Transparency International,firms from which of...

Question 5

Franchising is a form of ________.

Accepted Answer

Franchising is a form of licensing where a franchisee is given the right to use the franchisor's brand name, business model, and products/services in return for a fee or royalty. The franchisee operates as an independent entity but follows the rules and guidelines set by the franchisor.

Question 6

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 ________.

Accepted Answer

The answer of After exporting,the next level of commitment a...

Question 7

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.

Accepted Answer

Standardization advocates believe that basic needs and wants are the same everywhere, and therefore, companies should use the same marketing mix (product, price, place, and promotion) in all markets to achieve economies of scale and save costs. Localization advocates, on the other hand, emphasize the differences among cultures and argue that companies should adapt their marketing mix to suit each market's specific preferences and characteristics. Nationalization refers to a government taking control of a company or industry, while expropriation is the government taking private property without compensation. Ethnocentricism is the belief that one's culture is superior to others.

Question 8

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.

Accepted Answer

Export merchants are professional intermediaries who specialize in finding buyers for goods produced by small firms and negotiating terms on their behalf. They understand the local market and can help small firms navigate the complexities of exporting. Direct investors and franchisors involve deeper levels of involvement and investment, while franchisees are more focused on domestic operations. Free traders is not a relevant term in this context.

Question 9

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)________.

Accepted Answer

The imposed tax on imported steel is a tariff, which is a tax on imported goods with the aim of protecting domestic industries and creating jobs.

Question 10

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

Accepted Answer

Direct investment allows a foreign firm to benefit from the domestic company's market position, local knowledge, and political connections, making it an attractive market entry strategy. It involves establishing a physical presence in the target market, such as setting up a subsidiary, joint venture, or acquiring a local company. It provides a high level of control and enables the firm to manage its operations directly. However, it also involves a higher level of risk due to the substantial investment required in infrastructure, human capital, and other resources.

Question 11

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

Accepted Answer

The decisions concerning the firm's product when selling in a foreign market can either be a straight extension, adaptation or invention. Straight extension means the product is sold in the foreign market without any changes. Adaptation means the product is modified to suit the local market while invention means a new product is created specifically for the foreign market.

Question 12

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.

Accepted Answer

Localization advocates believe that cultural differences should be taken into account when developing marketing strategies for products and promotional messages. This involves tailoring products and messages to specific cultures rather than using a standardized approach across all markets.

Question 13

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 ________.

Accepted Answer

Sugar import quotas are a policy tool used by governments to protect domestic producers from foreign competition, which is a form of protectionism. Embargoes, nationalization, expropriation, and disintermediation are not applicable terms in this context.

Question 14

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?

Accepted Answer

The quotas exist to reduce competition for the domestic sugar industry by limiting the amount of foreign sugar that can enter the U.S. market. This helps to maintain prices and support domestic sugar producers.

Question 15

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?

Accepted Answer

Growing Green is evaluating the benefits and disadvantages of different market-entry strategies, which indicates that they are in the stage of deciding which market-entry strategy is best.

Question 16

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

Accepted Answer

Export merchants are not a barrier to successful exporting, but rather facilitate and assist in the process by acting as intermediaries between the exporter and the foreign market. Tariffs, local content laws, import quotas, and economic sanctions can all hinder or restrict the ability to export.

Question 17

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

Accepted Answer

Backward invention is a process of simplification of an existing product to make it suitable for a different market with lower income levels or different needs. Therefore, if a firm needs to offer a less complex product in a foreign market than it sells elsewhere, it would use backward invention to meet the needs of the new market. Option A is the only one that reflects such a situation.

Question 18

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

Accepted Answer

Dumping refers to a company pricing its products lower in a foreign market than in its home market. This can lead to unfair competition and harm domestic producers, which is why many countries have laws against it. Gray marketing and black marketing refer to illegal or unethical practices such as selling counterfeit goods or stealing products. Parallel importing refers to the practice of importing a product from a foreign market without the permission of the original manufacturer, which can also be a contentious issue. Countertrading refers to a form of international trade where goods are exchanged without using money, and is not directly related to pricing.

Question 19

________ occurs when someone in authority extracts payment under duress.

Accepted Answer

Extortion occurs when someone in authority extracts payment under duress. This is typically done through the threat of violence or harm, and is considered a criminal act. Nationalization is the process by which a government takes over control of a company or industry. Economic sanctions are a form of punishment imposed on a country by other nations in order to pressure it into changing its policies. Bribery is the act of offering money or other incentives to persuade someone to do something illegal or unethical. Expropriation is the forced takeover of private property by a government for public use or benefit.

Question 20

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?

Accepted Answer

These scenarios are examples of countertrade, where countries exchange goods or services with each other instead of using currency.

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