Question 1

Chinese restrictions on the exchange of the Yuan and Renminbi would be classified under the legal category of PESTEL.

Accepted Answer

While these restrictions are in a sense legal restrictions, they fall under the PESTEL category of government intervention in the economy, hence, are part of the economic element of the model.

Question 2

Demand for high-tech products is ___________________________________________________.

Accepted Answer

A

Question 3

China is the world's largest exporter of merchandise when valued in US dollars.

Accepted Answer

False

Question 4

Rosen,Schroeder,and Puriton suggest that one means of reducing high-tech product introduction failures is to _____________________________________.

Accepted Answer

Because these markets are very competitive, manufacturers rush to market, sometimes without proper consumer research. The value of research must be considered carefully before eliminating it.

Question 5

The growth of biotechnology has resulted in an increased need for research and development facilities,most of which are to be located in ________________.

Accepted Answer

China and India actually lead the way in research and development facilities for the biotech industry.

Question 6

Which of these factors is not a part of the global marketing environment as defined by the PESTEL model?

Accepted Answer

The ethical factor is not typically included in the PESTEL model. The other four factors - political/legal, economic, social, and technological - are all commonly considered in analyzing the global marketing environment.

Question 7

The social and economic institutions that a nation relies on to develop and market new technology comprise the _____________________.

Accepted Answer

See footnote 1 in this chapter for further details.

Question 8

A highly dynamic,complex market with rapid maturity tends to characterize a(n)_________________________.

Accepted Answer

A highly dynamic and complex market with rapid maturity is typically associated with high-tech industries, where new technologies and innovations emerge at a rapid pace, leading to rapid changes in consumer preferences and demand. This can make it difficult for companies to stay competitive and requires a continuous effort to innovate and develop new products and services. Global, local, and business-to-business markets may also exhibit some level of dynamism and complexity, but they may not necessarily have the same degree of rapid change and technological innovation as high-tech markets.

Question 9

When trade deficits generate a decrease in aggregate income,__________________________________ .

Accepted Answer

When trade deficits generate a decrease in aggregate income, it means that the country is spending more on imports than it is earning through exports. This results in a decrease in factors such as consumption, savings, investment, and tax revenue as the country tries to compensate for the loss. This is why choice A is the correct answer. Option B is incorrect because a trade deficit usually leads to a weakening of the currency, not strengthening. Option C is also incorrect because a decrease in aggregate income is usually negative for an economy. Option D is not directly related to the question and is therefore incorrect.

Question 10

An increase in imports that results in a widened trade deficit must be considered unfavorable in a prosperous economy.

Accepted Answer

If an increase in imports creates a trade deficit, but is the result of a prosperous economy and increased ability to purchase both imported and domestic goods, the trade deficit should not be labelled "unfavorable".

Question 11

Developing nations often evolve into high-tech electronics exporters by virtue of component part assembly by low-wage workers.

Accepted Answer

Developing nations often attract foreign investment to set up factories for the assembly of component parts for high-tech electronics. This provides low-wage jobs for workers in the country and can lead to the development of a skilled workforce and eventually, the ability to produce and export high-tech electronics themselves.

Question 12

Of Malta,Ireland,Japan or the U.S.,the country with the heaviest concentration of high tech exports in comparison to total exports is ______________.

Accepted Answer

Malta has a high concentration of high-tech exports relative to its total exports, largely due to its focus on electronics and technology manufacturing.

Question 13

When Tamisha researches the application of CE standards in German automobile manufacturing,she is most concerned with the __________________ element of the PESTEL model.

Accepted Answer

The social element of the PESTEL model primarily involves demographic and cultural factors.

Question 14

Doing business in foreign markets usually entails the same level of risk as doing business locally.

Accepted Answer

Doing business in foreign markets actually entails significantly greater risk than when confining business activities to domestic markets.

Question 15

The largest global share of high-tech product imports belongs to ____________________________.

Accepted Answer

The European Union is the second-largest importer of high-tech products.

Question 16

Most global trade is ___________________________________.

Accepted Answer

Most global trade is regional, although trade agreements may contribute to this fact.

Question 17

The strengthening or weakening of a currency,an increase or decrease in world economic strength,and changes in demand for imports and exports are contributing factors to ____________________.

Accepted Answer

While these events could contribute to less stability in a country's balance of trade, there is know way of determining that they would conclusively without further information.

Question 18

Sergei is analyzing the number of consumers in Belgium who are college-educated,and their geographic dispersion across the country. Upon which PESTEL factor is he focusing?

Accepted Answer

Education is within the subset of social factors in the PESTEL model.

Question 19

Bio-Med Devices is one example of a large,multinational company that exports a large majority of its total production output.

Accepted Answer

There is no information provided in the statement about whether Bio-Med Devices exports a large majority of its total production output. Therefore, it cannot be determined whether this statement is true or false.

Question 20

Hi-tech marketers rely on a _____________ focus.

Accepted Answer

High tech marketers rely on a product focus, which is driven by technology rather than customer needs.

Quiz 2: Assessing the Global Marketing Environmentthe Global Economy and Technology