Question 1

Which of the following is a difference between product invention and product adaptation?
A)Product invention involves altering the promotional strategies for a product, while product adaptation does not involve altering such strategies.
B)Product invention takes the marketing mix into consideration, while product adaptation does not take it into consideration.
C)Product invention involves drastically changing an existing product, while product adaptation involves slightly altering a basic product.
D)Product invention applies only to products that are sold in local markets, while product adaptation applies to products all around the world.

Accepted Answer

Product invention involves creating a new product that does not exist in the market. It involves drastic changes in the product, often resulting in a completely new product. On the other hand, product adaptation involves making minor changes to an existing product to fit the needs of a particular market or customer group. Product adaptation does not involve drastic alterations to the product.

Question 2

Using a capital-intensive technology refers to using less equipment than labor in the production process.

Accepted Answer

Using a capital-intensive technology refers to using more equipment than labor in the production process.

Question 3

The final step in creating a marketing mix is developing a thorough understanding of the global target market.

Accepted Answer

False

Question 4

Exporting is usually the most complicated and most risky method of global marketing.

Accepted Answer

Exporting is generally considered one of the simplest and least risky methods of entering international markets compared to other methods like joint ventures or direct investment.

Question 5

Because Facebook, YouTube, and other social media are popular around the world, firms both large and small have embraced social media marketing.

Accepted Answer

The statement accurately describes how popular social media platforms have become and how businesses of all sizes have capitalized on social media marketing to promote their products and services.

Question 6

Global marketing is a one-way street whereby only U.S. companies sell their wares and services throughout the world.

Accepted Answer

Global marketing refers to the marketing of products or services to a global audience, which includes companies from all countries and regions, not just the U.S.

Question 7

Traditionally, marketing-oriented multinational corporations enable individual subsidiaries to compete independently in domestic markets.

Accepted Answer

The answer of Traditionally, marketing-oriented multinational corporations enable individual subsidiaries...

Question 8

The surge in global trade in recent years has added to strains and charges for all forms of transport.

Accepted Answer

The statement is true. The increase in global trade has led to higher demands on transportation infrastructure, leading to strains and charges for all forms of transport.

Question 9

One important resource of foreign direct investment is personnel, especially managers.

Accepted Answer

Personnel, especially managers, are an important resource for foreign direct investment as they bring knowledge, expertise, and experience to the new business venture. Hiring local managers with knowledge of the host country's culture, business practices, and regulations can also help the foreign company establish a strong presence in the market. Therefore, foreign direct investment often involves the transfer of personnel from the investing company to the host country.

Question 10

The four Ps of global marketing strategy are product, place, promotion, and price.

Accepted Answer

The four Ps of global marketing strategy are product, place, promotion, and price.

Question 11

The Uruguay Round replaced General Agreement on Tariffs and Trade (GATT) with _____.
A)the European Union (EU)
B)the World Trade Organization (WTO)
C)the North American Free Trade Agreement (NAFTA)
D)the International Monetary Fund (IMF)

Accepted Answer

The Uruguay Round resulted in the creation of the World Trade Organization (WTO) to replace GATT as the global forum for trade negotiations and dispute settlement. The other options (EU, NAFTA, IMF) are separate entities that were not directly affected by the Uruguay Round.

Question 12

Which of the following is a characteristic of market grouping?
A)It occurs when government efforts stifle imports or investment by foreign corporations.
B)It occurs when several countries agree to work together to form a common trade area.
C)It occurs when a trade agreement dramatically lowers trade barriers across the world.
D)It occurs when a domestic firm joins with a foreign company to create a new entity.

Accepted Answer

Market grouping refers to the process in which several countries agree to form a common trade area, also known as a regional trade agreement. This is done by reducing trade barriers between the participating countries, promoting the free flow of goods, services, and capital. Examples of market grouping include the European Union and the North American Free Trade Agreement (NAFTA).

Question 13

The Group of Twenty (G-20) was founded in 1945, one year after the creation of the World Bank, to promote trade through financial cooperation and eliminate trade barriers in the process.

Accepted Answer

The G-20 was actually founded in 1999 as a forum for international economic cooperation between the world's largest economies. Its members include 19 countries and the European Union. The original purpose of promoting trade through financial cooperation and eliminating trade barriers still remains one of its key objectives.

Question 14

A company wishing to buy goods abroad must first obtain a foreign currency exchange from the control agency.

Accepted Answer

A foreign currency exchange is required to purchase goods abroad due to exchange rate regulations.

Question 15

Opening an e-commerce site on the Internet makes it difficult for a company to gain recognition in the international marketplace.

Accepted Answer

Opening an e-commerce site on the Internet can actually help a company gain recognition in the international marketplace by reaching a global audience. However, there may still be challenges related to language barriers, cultural differences, and competition from established international brands.

Question 16

Sinesia is a country that has very few sources of potable water. Given this information, which of the following is most likely to happen?
A)Sinesia's international marketing will remain unaffected because petroleum is the only factor that affects international marketing.
B)Sinesia will remain an importer of foodstuffs.
C)Sinesia will become an attractive target for military intervention.
D)Sinesia's wealth will equal that of the countries with rich sources of water.

Accepted Answer

The lack of potable water suggests that agriculture will be difficult and domestic food production will be scarce. As a result, the country may be forced to import more food, which could impact their economy and international trade relations. Military intervention is not a likely outcome, and there is no evidence to suggest that Sinesia's wealth will equal that of countries with abundant sources of water. The petroleum industry is also not relevant to this situation.

Question 17

In the context of distribution, ocean shipping is faster than airfreight.

Accepted Answer

This statement is false. Airfreight is generally faster than ocean shipping, as it takes only a few days to transport goods by air compared to several weeks or even months by sea. However, ocean shipping is usually more cost-effective than airfreight.

Question 18

Of all the types of managers, the managers of global social media campaigns are the ones who need not be aware of the cultures of the countries in which they operate.

Accepted Answer

Managers of global social media campaigns need to be aware of the cultures of the countries in which they operate to avoid cultural faux pas and ensure that their campaigns are appropriate and effective. Ignorance or disregard for cultural differences can result in negative backlash and damage to the company's reputation.

Question 19

Joint ventures prevent a local firm from acquiring managerial skills and new technology.

Accepted Answer

Joint ventures can actually provide opportunities for local firms to acquire new managerial skills and technology from their foreign partner. Through collaboration and knowledge-sharing, both parties can benefit and learn from each other's expertise.

Question 20

Average family incomes are higher in more developed countries than in less developed countries.

Accepted Answer

This is generally true as more developed countries have higher levels of economic growth and higher standards of living, leading to higher average family incomes.

Quiz 5: Developing a Global Vision

Which of the following is a difference between product invention and product adaptation?

Using a capital-intensive technology refers to using less equipment than labor in the production process.

The final step in creating a marketing mix is developing a thorough understanding of the global target market.

Exporting is usually the most complicated and most risky method of global marketing.

Because Facebook, YouTube, and other social media are popular around the world, firms both large and small have embraced social media marketing.

Global marketing is a one-way street whereby only U.S. companies sell their wares and services throughout the world.

Traditionally, marketing-oriented multinational corporations enable individual subsidiaries to compete independently in domestic markets.

The surge in global trade in recent years has added to strains and charges for all forms of transport.

One important resource of foreign direct investment is personnel, especially managers.

The four Ps of global marketing strategy are product, place, promotion, and price.

The Uruguay Round replaced General Agreement on Tariffs and Trade (GATT) with _____.

Which of the following is a characteristic of market grouping?

The Group of Twenty (G-20) was founded in 1945, one year after the creation of the World Bank, to promote trade through financial cooperation and eliminate trade barriers in the process.

A company wishing to buy goods abroad must first obtain a foreign currency exchange from the control agency.

Opening an e-commerce site on the Internet makes it difficult for a company to gain recognition in the international marketplace.

Sinesia is a country that has very few sources of potable water. Given this information, which of the following is most likely to happen?

In the context of distribution, ocean shipping is faster than airfreight.

Of all the types of managers, the managers of global social media campaigns are the ones who need not be aware of the cultures of the countries in which they operate.

Joint ventures prevent a local firm from acquiring managerial skills and new technology.

Average family incomes are higher in more developed countries than in less developed countries.