Question 1

Exporting refers to a situation where a company maintains ownership of its plants, operational facilities, and offices in a foreign country in which it sells its products.

Accepted Answer

Exporting refers to the sale of products or services produced in one country to another country, without establishing local operations in the foreign country.

Question 2

The BRIC countries are Bolivia, Russia, Italy, and China.

Accepted Answer

The BRIC countries are actually Brazil, Russia, India, and China.

Question 3

Firms would prefer to manufacture in a country that has a trade surplus, or a higher level of exports than imports.

Accepted Answer

Firms would prefer to manufacture in a country that has a trade surplus as it indicates that the country is exporting more than it is importing, which can lead to a more stable economy, favorable exchange rates, and potentially more business opportunities for the firm.

Question 4

Glocalization refers to a global marketing strategy in which each of the four Ps is customized for each country.

Accepted Answer

Glocalization combines global and local considerations, adapting products or services for each local market while maintaining an overall global strategy, rather than customizing all elements of the marketing mix (product, price, place, promotion) entirely for each country.

Question 5

Russia lags behind most European countries in use of the Internet.

Accepted Answer

Russia has a high internet penetration rate, with a significant portion of its population having access to the internet, making it comparable to many European countries in terms of internet usage.

Question 6

Companies that engage in global marketing must continually monitor economic and social trends to protect their position within the market and adjust products and marketing strategies to meet the changing needs of global markets.

Accepted Answer

This statement is true. Companies that engage in global marketing must always stay updated with economic and social trends to remain competitive in the global market. They must also be adaptable to changing consumer needs and preferences in different countries and regions.

Question 7

The greater the wealth of a country, generally, the better the opportunity a firm will have in that particular country.

Accepted Answer

This is generally true because wealthy countries usually have a stable economy, strong infrastructure, and a higher level of education and technology which creates a favorable environment for business growth and development. However, there are exceptions where a country's wealth may not directly translate to better business opportunities, such as in countries with high levels of corruption or limited market size.

Question 8

Colin wants information about the infrastructure in the countries his company is planning to export to, so he should gather information about the transportation and communications capabilities in each country.

Accepted Answer

Gathering information about transportation and communications capabilities is essential in understanding the infrastructure of a country, which can impact a company's export plans.

Question 9

The Big Mac Index is a measure of economic health in a country.

Accepted Answer

The answer of The Big Mac Index is a measure...

Question 10

In parts of Europe, including Belgium, Italy, Spain, Greece, and France, sales are allowed only twice a year, in January and June or July.

Accepted Answer

This statement is true. In these countries, sales are regulated by law and can only take place during specific periods of the year.

Question 11

There is only one global product strategy: to sell a product or service similar to that sold in the home country, but include minor adaptations.

Accepted Answer

There are different global product strategies, including global standardization (selling the same product or service in all markets), localization (adapting the product or service to meet the specific needs and preferences of each market), and glocalization (combining global standardization with local adaptation). The choice of strategy depends on various factors, such as the nature of the product, the characteristics of the target market, and the competition.

Question 12

In a joint venture, the burden of ownership, control, and profits falls on the market entry firm.

Accepted Answer

In a joint venture, ownership, control, and profits are typically shared between the market entry firm and its partner(s). The exact distribution of these elements can vary depending on the terms of the joint venture agreement.

Question 13

Brazil is characterized by strong upper and lower classes, but the middle class has declined in recent years.

Accepted Answer

The answer of Brazil is characterized by strong upper and...

Question 14

Among the various international trade agreements, the North American Free Trade Agreement represents the highest level of integration across individual nations.

Accepted Answer

The answer of Among the various international trade agreements, the...

Question 15

Increasing liberalization in the Chinese economy has prompted a large improvement in the country's Global Retail Development Index (GRDI).

Accepted Answer

The statement is correct. China's increasing liberalization in the economy has resulted in a significant improvement in its Global Retail Development Index (GRDI).

Question 16

Global expansion often begins when a firm receives an order for its product from another country.

Accepted Answer

Global expansion can often begin with a firm receiving an order for its product from another country, as it can signal demand and create opportunities for the company to explore new markets.

Question 17

Tariffs are intended to make imported goods less expensive and thus less competitive with domestic products.

Accepted Answer

Tariffs are intended to make imported goods more expensive and less competitive with domestic products. This is achieved by imposing additional taxes on imported goods, which raises their price and makes them less attractive to consumers compared to domestic alternatives.

Question 18

Entering into a global franchise agreement exposes a company to higher risk than if the company had entered into direct investment in the country.

Accepted Answer

The answer of Entering into a global franchise agreement exposes...

Question 19

An effective global pricing strategy can be easily established by setting the same prices in every market around the world.

Accepted Answer

An effective global pricing strategy takes into account local market conditions, such as competition, currency exchange rates, taxes, and consumer behavior. Setting the same prices in every market may not be effective or competitive in each specific market.

Question 20

India is one of the fastest-growing markets and has one of the youngest populations in the world.

Accepted Answer

India has a population of over 1.3 billion and around 65% of the population is under the age of 35. This makes it one of the youngest populations in the world, leading to a huge potential consumer market. Additionally, India has been consistently placed among the fastest-growing large economies in the world.

Quiz 8: Global Marketing