Question 1

________ are major exporters of manufactured goods, services, and investment funds.

Accepted Answer

Industrial economies are known for their advanced production and manufacturing capabilities, enabling them to export manufactured goods, as well as services and investment funds. Examples include the United States, Japan, Germany, and the United Kingdom. Raw material exporting economies (A) rely on exporting natural resources, subsistence economies (B) focus on producing enough for their own consumption, industrializing economies (C) are in the process of transitioning from raw material exports to manufacturing, and emerging economies (E) are rapidly growing and developing, but may not yet have the level of manufacturing capabilities necessary for major exports.

Question 2

Which of the following is a geographic factor that a company should consider before deciding to enter into a new country?

Accepted Answer

The answer of Which of the following is a geographic...

Question 3

If Azerbaijan imported wheat from Romania in exchange for crude oil, and Vietnam exchanged rice for Philippine fertilizer and coconuts then these scenarios would be examples of ________.

Accepted Answer

These scenarios are examples of barter, where goods are exchanged directly without the use of money.

Question 4

Which of the following is a demographic factor that a company should consider before deciding to enter into a new country?

Accepted Answer

The answer of Which of the following is a demographic...

Question 5

Foreign businesses in China appear to receive unusually close scrutiny and harsh treatment from Chinese authorities, aimed at boosting the fortunes of local competitors. This includes trade tariffs, quotas, restrictions, etc. This reflects that a country's ________ should be carefully considered before doing business in that country.

Accepted Answer

The political-legal environment refers to the laws, regulations, and political climate of a country. In China, the government plays a strong role in the economy and often favors domestic companies over foreign ones through various means of protectionism. Understanding the political environment and how it may impact foreign businesses is crucial in determining whether or not to do business in a particular country.

Question 6

Which of the following is an example of an industrial economy?

Accepted Answer

Japan has a highly developed industrial economy, with a focus on advanced technological and manufacturing industries. China, Vietnam, India, and North Korea are all developing economies with a mix of agriculture, manufacturing, and service sectors.

Question 7

The United States and Norway are examples of ________ economies.

Accepted Answer

Both the United States and Norway have highly developed industrial economies, with a focus on manufacturing and services rather than raw material exports or subsistence agriculture. They are among the most advanced economies in the world.

Question 8

Which of the following is the LEAST critical decision a company should make before going abroad?

Accepted Answer

While employing foreign nationals is still an important decision, it is the least critical of the options listed as it can be addressed after the company has established a presence in the foreign market. The other options are more critical as they directly impact the success and viability of the company's international expansion efforts.

Question 9

Demographic characteristics, geographic characteristics, economic factors, sociocultural factors, and political and legal factors all help a company ________.

Accepted Answer

Demographic characteristics, geographic characteristics, economic factors, sociocultural factors, and political and legal factors are all factors that help companies determine a market's potential. These factors can provide valuable insights into the needs and preferences of consumers, as well as the level of competition and regulatory environment in a given market. By analyzing these factors, companies can make informed decisions about the feasibility and potential profitability of entering a particular market.

Question 10

Which of the following involves the direct exchange of goods and services?

Accepted Answer

Barter involves the direct exchange of goods and services without the use of money. The other options all involve some form of monetary compensation.

Question 11

Countries with ________ economies consist mostly of households with very low family incomes.

Accepted Answer

Economies with subsistence economies consist mostly of households with very low family incomes. These households produce only enough goods and services to barely survive and may not have access to modern technologies or infrastructure.

Question 12

Which of the following is a sociocultural factor that a company should consider before deciding to enter into a new country?

Accepted Answer

Consumer lifestyles, beliefs, and values are important sociocultural factors that can greatly impact the success of a company entering a new country. Understanding the cultural norms, behaviors, and preferences of the target market can help a company tailor its products or services and marketing strategies to better meet the needs and expectations of the consumers in that country. Factors such as language, religion, customs, and social structures can also play a significant role in shaping consumer behavior and attitudes towards certain products or brands.

Question 13

Nike inadvertently offended Chinese officials when it ran an ad featuring LeBron James crushing a number of revered Chinese figures in a kung fu-themed television ad. As a result, Nike has to release a formal apology. This is an example of the impact of ________ on marketing strategy.

Accepted Answer

The incident illustrates the impact of culture on marketing strategy. The ad featured elements of Chinese culture, including kung fu and revered historical figures. However, it was not perceived positively by Chinese officials due to cultural sensitivities. This highlights the importance of understanding and respecting cultural norms and values when developing marketing strategies for global markets.

Question 14

Sellers might accept a(n) ________, one whose removal from the country is restricted by the buyer's government, if they can buy other goods in that country that they need themselves or can sell elsewhere for a needed currency.

Accepted Answer

A blocked currency is a currency whose removal from the country is restricted by the buyer's government. Sellers might accept a blocked currency if they can use it to buy other goods in that country that they need themselves or can sell elsewhere for a needed currency. The other options listed (countervailing duty, custom duty, anti-dumping duty, and tariff) all refer to taxes or fees imposed on imported goods, and are not relevant to the question of accepting a blocked currency.

Question 15

Industrializing economies are also known as ________ economies.

Accepted Answer

Industrializing economies are those that are transitioning from primarily agricultural or raw material exporting economies to ones that are focused on manufacturing and industry. These economies are often classified as emerging, as they are in the process of becoming more developed and stable.

Question 16

BRIC countries are examples of ________ economies.

Accepted Answer

BRIC stands for Brazil, Russia, India, and China, all countries that are rapidly industrializing and transitioning into major economic powerhouses.

Question 17

Which of the following characterizes emerging economies?

Accepted Answer

The answer of Which of the following characterizes emerging economies?
...

Question 18

Which of the following would a defender of globalization most likely use as an example to argue that concerns of Americanization are overblown and that globalization is indeed a two-way street?

Accepted Answer

The answer of Which of the following would a defender...

Question 19

India needs more imports of raw materials such as textiles, steel, and heavy machinery and fewer imports of finished textiles, paper products, and automobiles. In the context of industrial structures, India is most likely a(n) ________ economy.

Accepted Answer

The fact that India is importing raw materials (such as textiles, steel, and heavy machinery) and not importing finished products (such as textiles, paper products, and automobiles) suggests that it is in the process of industrializing its economy. This is consistent with the characteristics of an industrializing economy, which is transitioning from an agrarian or raw material-exporting economy to a more manufacturing-focused one.

Question 20

The BRIC countries are ________.

Accepted Answer

The BRIC countries refer to Brazil, Russia, India, and China, which are four emerging economies with significant influence on global economics and politics. Option A includes Bolivia, the Republic of Haiti, Israel, and Chile, which are not part of BRIC. Option B includes only Commonwealth countries and the Republic of the Marshall Islands, which is not a BRIC member. Option D includes African countries that are not part of the BRIC countries. Option E includes European countries that are not part of the BRIC countries.

Quiz 19: The Global Marketplace