Question 1

The United States sells more domestically produced products in other countries than any other country in the world.This means the United States is the world leader in:

Accepted Answer

Exporting is selling domestically produced products to buyers in another country.

Question 2

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

Accepted Answer

The economy of the European Union has a gross domestic product of about $18 trillion.

Question 3

Zambia is internationally recognized as the world's second leading producer of cobalt,which is used to make high-speed and high-temperature cutting tools and dyes.A company that wanted to manufacture tools for shaping steel would be most attracted to which element of the Zambian environment?

Accepted Answer

The text concentrates on the importance of petroleum to global marketing,but other minerals are of equal or greater value to some companies.

Question 4

The G-20 has reached agreement regarding policies for all of the following EXCEPT:

Accepted Answer

Agreements on wage and price controls have not been developed by the G-20.

Question 5

Which method of entering the global marketplace would be LEAST risky?

Accepted Answer

Exporting involves selling products or services to foreign markets without having to establish operations in the foreign country. It is a relatively low-risk option because the company retains control over its products and does not need to invest significant amounts of capital to enter the foreign market.

Question 6

In the wake of the global recession of 2008-2009,many countries have:

Accepted Answer

Many countries have moved toward protectionism after the global recession of 2008-2009.

Question 7

The goal of the Central America Free Trade Agreement (CAFTA)is to:

Accepted Answer

The countries included in CAFTA are the United States,Costa Rica,the Dominican Republic,El Salvador,Guatemala,Honduras,and Nicaragua.

Question 8

Which of the following is the latest round of World Trade Organization (WTO)?

Accepted Answer

The Doha Round began in Doha,Qatar,in 2001.

Question 9

When developing countries began encouraging foreign investors and imports,companies like Black & Decker and Pillsbury offered a wide array of products to countries throughout the world.Because of enormous populations in developing countries,these companies predicted a potential for strong annual sales.However,in addition to total population,companies must not overlook _____ factors such as distribution of people within a country and household incomes.

Accepted Answer

Important factors for marketers to consider about an international market are the distribution of the wealth,the average household income,and the division of the population between rural and urban areas.Demography is the study of statistics of populations and their changes in age,income,distribution,and so on.In many developing countries most of the huge population is poor and cannot afford luxuries such as radios and small appliances.

Question 10

Who offers low-interest loans to developing nations?

Accepted Answer

The World Bank offers low-interest loans to developing nations.

Question 11

Which list correctly ranks the methods of entering the global marketplace in increasing order of risk?

Accepted Answer

Exporting,licensing and franchising,contract manufacturing,joint venture,and direct investment are methods of entering the global marketplace in order of risk.

Question 12

The International Monetary Fund (IMF)was founded in 1945 to:

Accepted Answer

This was the founding purpose of the IMF.

Question 13

The _____ is the most ambitious global trade agreement ever negotiated;the agreement has reduced tariffs by one-third worldwide.

Accepted Answer

The Uruguay Round is an agreement that has dramatically lowered trade barriers worldwide (i.e. ,reduced tariffs by one-third worldwide).

Question 14

The North American Free Trade Agreement (NAFTA)did all of the following EXCEPT:

Accepted Answer

Over the years,Mexico has made economic gains due to NAFTA.

Question 15

A multinational company that makes a labor-intensive product would be interested in the _____ makeup of countries.Factors such as median age,gender,and literacy rates would determine the success of its global expansion.

Accepted Answer

Demographics include age and educational levels as well as ethnicity and gender.

Question 16

The role of a domestic company that sells to an export merchant (also called a buyer for export)is to:

Accepted Answer

After the manufacturer sells to the export merchant,the manufacturer has no more control or involvement with the product.

Question 17

The _____ of trade negotiations created the _____,which replaces GATT.This trade agreement dramatically lowers trade barriers worldwide.

Accepted Answer

The Uruguay Round created the WTO.

Question 18

All of the following are countries included in the Central America Free Trade Agreement (CAFTA)EXCEPT:

Accepted Answer

CAFTA includes Costa Rica,the Dominican Republic,El Salvador,Guatemala,Honduras,and Nicaragua.

Question 19

Vast differences in natural resources create all of the following EXCEPT:

Accepted Answer

While differences do create shifts in wealth,dependencies,inflation,recession,and the potential for conflict,they only hinder opportunities for the countries that do not have resources.

Question 20

Which method of entering the global marketplace would be most risky?

Accepted Answer

Direct investment involves significant financial commitment, ownership of assets, and potential exposure to political risks in the foreign country. This method can be the most risky as it puts the company's resources and reputation at stake with no guarantee of success. The other options provide lower levels of commitment and risk, such as exporting, where the company only ships products to foreign markets or licensing, where the company grants the rights to use its products, technology, or intellectual property to other companies. Contract manufacturing and joint ventures involve partnerships with other companies, which may share the risks, costs, and benefits of entering foreign markets.

Quiz 5: Developing a Global Vision

The United States sells more domestically produced products in other countries than any other country in the world.This means the United States is the world leader in:

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

Zambia is internationally recognized as the world's second leading producer of cobalt,which is used to make high-speed and high-temperature cutting tools and dyes.A company that wanted to manufacture tools for shaping steel would be most attracted to which element of the Zambian environment?

The G-20 has reached agreement regarding policies for all of the following EXCEPT:

Which method of entering the global marketplace would be LEAST risky?

In the wake of the global recession of 2008-2009,many countries have:

The goal of the Central America Free Trade Agreement (CAFTA) is to:

Which of the following is the latest round of World Trade Organization (WTO) ?

Who offers low-interest loans to developing nations?

Which list correctly ranks the methods of entering the global marketplace in increasing order of risk?

The International Monetary Fund (IMF) was founded in 1945 to:

The _____ is the most ambitious global trade agreement ever negotiated;the agreement has reduced tariffs by one-third worldwide.

The North American Free Trade Agreement (NAFTA) did all of the following EXCEPT:

A multinational company that makes a labor-intensive product would be interested in the _____ makeup of countries.Factors such as median age,gender,and literacy rates would determine the success of its global expansion.

The role of a domestic company that sells to an export merchant (also called a buyer for export) is to:

The _ of trade negotiations created the _,which replaces GATT.This trade agreement dramatically lowers trade barriers worldwide.

All of the following are countries included in the Central America Free Trade Agreement (CAFTA) EXCEPT:

Vast differences in natural resources create all of the following EXCEPT:

Which method of entering the global marketplace would be most risky?