Question 1

A country's imports
A)stimulate the imports of other countries.
B)have no affect on its exports.
C)have no relationship with its balance of payments.
D)affect its exports and exports affect its imports.
E)over time will decrease its overall economic activity.

Accepted Answer

Imports affect a country's exports because if a country imports more goods and services than it exports, it may experience a trade deficit, which can have a negative impact on its overall economic activity. In addition, a country's exports can also affect its imports because it may engage in trade agreements or alliances with other countries that affect the flow of goods and services between them. Therefore, there is a relationship between a country's imports and exports, and they can have an impact on each other.

Question 2

Five trends in the past decade have significantly influenced the landscape of global marketing. One of them is
A)an increase in most countries' GDP coupled with an increased degree of consumer ethnocentrism.
B)a significant increase in economic protectionism and a decline in free trade.
C)a more aggressive attitude toward initiating international tariffs and quota systems.
D)a decrease in most countries' GDP and a renewal of nationalism.
E)a decline in economic protectionism by individual countries.

Accepted Answer

The trend of a decline in economic protectionism by individual countries has significantly influenced global marketing in the past decade. This has led to an increase in free trade agreements between countries, opening new markets for businesses and creating opportunities for global marketing.

Question 3

Five trends in the past decade have significantly influenced the landscape of global marketing. One of them is
A)an increase in economic protectionism and a decline in free trade.
B)a more aggressive attitude toward initiating international tariffs and quota systems.
C)global competition among global companies for global customers.
D)a decrease in most countries' GDP and a renewal of nationalism.
E)an increase in most countries' GDP coupled with an increased degree of consumer ethnocentrism.

Accepted Answer

The trend of global competition among global companies for global customers has significantly influenced the landscape of global marketing in the past decade. This trend has been driven by the increasing integration of global markets, advancements in technology and logistics, and the rise of emerging markets. Companies are now competing not only in their domestic markets but also in markets around the world, resulting in a greater need for global marketing strategies and tactics.

Answer options A, B, D, and E are incorrect because they either reflect protectionism, isolationism, or consumer-centric approaches, which are not consistent with the trend of global competition.

Question 4

Beginning January 1, 2005, China removed import quotas and lowered tariffs on automobiles. This removal of quotas and the lowering of tariffs is an example of
A)relaxing the rule of eminent domain.
B)reducing ethnocentrism.
C)enhancing domestic imperialism.
D)reducing protectionism.
E)enhancing countertrade.

Accepted Answer

The removal of import quotas and reduction of tariffs on automobiles is an instance of reducing protectionism. Protectionism refers to measures taken by a country to protect domestic industries and businesses from foreign competition, such as quotas and tariffs. By removing these barriers, China is making it easier for foreign businesses to import their products into the country, promoting more trade and potentially stimulating the domestic economy.

Question 5

Tariffs refer to
A)government payments to companies or industries that primarily serve to create competitive advantage for domestic products.
B)government taxes on products or services entering a country that primarily serve to raise prices on imports.
C)a restriction placed on the amount of a product allowed to enter or leave a country.
D)a minimum requirement for the purchase between two or more nations of products or services.
E)a refusal to purchase or exchange products or services with another nation unless certain financial or ideological requirements have been satisfied.

Accepted Answer

Tariffs are government-imposed taxes on imported or exported goods that primarily serve to raise prices on imports. They can be used as a tool for protecting domestic industries by making foreign goods more expensive and less competitive.

Question 6

Five trends in the past decade have significantly influenced the landscape of global marketing. One of them is
A)the rise of economic integration and free trade among nations.
B)an increase in economic protectionism and a decline in free trade.
C)a more aggressive attitude toward initiating international tariffs and quota systems.
D)a decrease in most countries' GDP and a renewal of nationalism.
E)an increase in most countries' GDP coupled with an increased degree of consumer ethnocentrism.

Accepted Answer

The rise of economic integration and free trade among nations has been one of the most significant trends in the past decade that has influenced the landscape of global marketing. This trend has led to the growth of global markets and the emergence of new consumer segments.

B, C, D, and E are incorrect because they either contradict or have no connection with the trend mentioned in the question.

Question 7

When a country's exports exceed its imports,
A)it incurs a deficit in its balance of trade.
B)the result is the trade feedback effect.
C)it will try to rebalance its overall economy.
D)it will attempt to engage in a trade war.
E)it incurs a surplus in its balance of trade.

Accepted Answer

When a country's exports exceed its imports, it generates a surplus in its balance of trade. This means that the country is selling more goods and services to other countries than it is buying from them. This can lead to an increase in the country's foreign exchange reserves and overall economic growth.

Question 8

Protectionism leads to
A)an increase in world trade.
B)possible profits for domestic producers.
C)an increase in exports.
D)an increase in imports.
E)countertrade.

Accepted Answer

Protectionism is a policy that aims to protect domestic industries from foreign competition, often through tariffs or quotas on imported goods. This can lead to possible profits for domestic producers, as they face less competition and have a better chance of selling their products at higher prices. However, protectionism tends to lead to a decrease in world trade as it limits the flow of goods and services across borders. As a result, it is unlikely to lead to an increase in exports or countertrade, and may even lead to a decrease in imports.

Question 9

Five trends in the past decade have significantly influenced the landscape of global marketing. One of them is
A)an increase in economic protectionism and a decline free trade.
B)a more aggressive attitude toward initiating international tariffs and quota systems.
C)a decrease in most countries' GDP and a renewal of nationalism.
D)the emergence of networked global marketspace.
E)an increase in most countries' GDP coupled with an increased degree of consumer ethnocentrism.

Accepted Answer

The emergence of networked global marketspace has had a significant influence on the landscape of global marketing in the past decade. This has been driven by the increased connectivity and accessibility of technology, which has enabled businesses to reach customers in different parts of the world more easily.

Answer: E
 Another trend that has significantly influenced global marketing in the past decade is the increase in most countries' GDP coupled with an increased degree of consumer ethnocentrism. As people have become wealthier, they have also become more interested in buying products that are manufactured locally or are associated with their own culture or country, which has implications for firms operating in global markets.

Question 10

Government taxes on products or services entering a country that primarily serve to raise prices on imports are referred to as
A)tariffs.
B)quotas.
C)WTO taxes.
D)foreign excise taxes.
E)trade subsidies.

Accepted Answer

Tariffs are taxes on foreign goods and services that are designed to protect domestic industries by raising the prices of foreign imports.

Question 11

Dell established its company primarily with direct telephone- and Internet-based sales. In terms of Dell's global expansion strategy, which of the following statements is most accurate?
A)Dell sells its computers via word of mouth, which is the most powerful method for consumer electronics.
B)Dell partners with each country's largest department stores and sells its computers in the small appliance department.
C)Dell issues its own credit card through multinational banks, making it possible for customers who would not normally qualify for credit to do so.
D)Dell distributes its products through individual sales associates who reach out to customers with a first-hand experience at their doorsteps.
E)Dell maintains the exact same U.S. strategies that brought it this far because it sees no reason to change.

Accepted Answer

The answer of Dell established its company primarily with direct...

Question 12

Those in favor of protectionism argue that it
A)helps reduce tariffs and quotas.
B)encourages the development of domestic industries.
C)encourages economic reliance on foreign countries.
D)creates opportunities for the outsourcing of domestic jobs.
E)creates a more favorable environment for a global economy.

Accepted Answer

Those in favor of protectionism argue that it encourages the development of domestic industries by reducing foreign competition and giving them a chance to grow and compete in the local market.

Question 13

The U.S. Rice Millers' Association claims that if the Japanese rice market were opened to imports by lowering __________, lower prices would save Japanese consumers $6 billion annually and the United States would gain a large share of the Japanese rice market.
A)boycotts
B)quotas
C)sanctions
D)tariffs
E)subsidies

Accepted Answer

Tariffs are taxes on imports, so if the Japanese rice market were opened to imports by lowering tariffs, it would allow foreign rice to enter the market at a competitive price. The U.S. Rice Millers' Association claims that this would save Japanese consumers $6 billion annually and give the United States a share of the Japanese rice market.

Question 14

All nations and regions of the world do not participate equally in world trade. World trade flows reflect
A)the influences of culture and language.
B)the differences among industries, countries, and regions.
C)interdependencies among industries, countries, and regions.
D)the challenges of currency and exchange imbalances.
E)the increasing importance of services verses products.

Accepted Answer

The answer of All nations and regions of the world...

Question 15

Why did Dell, Inc., embark on a global growth initiative?
A)U.S. sales had decreased.
B)Dell was recently purchased by Lenovo, a major Chinese competitor.
C)There was too much competition in Dell's direct-to-consumer marketing channel.
D)There were fewer restrictions in computer technology outside the United States.
E)Emerging economies offered significant growth potential.

Accepted Answer

The option E is the correct answer as emerging economies offered significant growth potential, which motivated Dell to embark on a global growth initiative to explore and expand its business in those economies. The other options are not valid reasons for Dell's global growth initiative.

Question 16

Which of the following issues raises concerns about the ethics of protectionism?
A)Competitive advantage grows out of continuous improvement.
B)Small firms succeed in foreign niche markets.
C)Tariffs have declined from an average of 40 percent to less than 5 percent.
D)Regional trade agreements may provide preferential treatment for member nations.
E)Pan-European marketing strategies are possible due to greater uniformity in packaging standards.

Accepted Answer

Regional trade agreements that provide preferential treatment for member nations raise concerns about the ethics of protectionism because they exclude non-member nations from the benefits, creating an unfair advantage for members. This violates the principles of free and fair trade, and can lead to economic inefficiencies and negative consequences for non-member nations.

Question 17

An estimated 10 to 15 percent of world trade involves __________, the practice of using barter rather than money for making global sales.
A)cross trade
B)countertrade
C)exchange trade
D)trade feedback
E)market trading

Accepted Answer

The described practice is called countertrade, which involves exchanging goods or services instead of using money for global sales.

Question 18

In what way is Dell's expansion into the global arena a departure from its prior marketing practices?
A)All Dell products were manufactured in the countries within which they were sold.
B)Dell sold its products to emerging markets using the telephone and Internet sales strategy that was so successful in the United States.
C)Dell opened shop-within-a-shop counters in selected retailers in India so shoppers could experience the products.
D)Dell sold only laptops in China, whereas it sold both desktops and laptops in India due to trade restrictions in China.
E)Dell designed and distributed the same products globally to take advantage of economies of scale.

Accepted Answer

Dell's expansion into the global arena involved opening shop-within-a-shop counters in India, which was a departure from its prior direct sales model via telephone and Internet.

Question 19

The practice of shielding one or more sectors of a country's economy from foreign competition through the use of tariffs or quotas is referred to as
A)domestic imperialism.
B)protectionism.
C)blocked competition.
D)import taxation.
E)trade restriction.

Accepted Answer

Protectionism is the practice of shielding one or more sectors of a country's economy from foreign competition through the use of tariffs or quotas. Domestic imperialism, blocked competition, import taxation, and trade restriction are not accurate terms for this concept.

Question 20

The balance of trade is the
A)difference between the monetary value of a nation's exports and imports.
B)sum of the monetary value of a nation's exports and imports.
C)monetary value of a nation's exports divided by its imports.
D)surplus that occurs when nations engage in exporting.
E)difference between a country's services and goods exports.

Accepted Answer

The balance of trade is defined as the difference between the monetary value of a country's exports and imports. This includes both goods and services. Therefore, option A is the correct answer. Option B is the total trade, not the balance, option C is the ratio of exports to imports, option D is a vague definition, and option E only refers to exports, not the balance.

Quiz 7: Understanding and Reaching Global Consumers and Markets

A country's imports

Five trends in the past decade have significantly influenced the landscape of global marketing. One of them is

Five trends in the past decade have significantly influenced the landscape of global marketing. One of them is

Beginning January 1, 2005, China removed import quotas and lowered tariffs on automobiles. This removal of quotas and the lowering of tariffs is an example of

Tariffs refer to

Five trends in the past decade have significantly influenced the landscape of global marketing. One of them is

When a country's exports exceed its imports,

Protectionism leads to

Five trends in the past decade have significantly influenced the landscape of global marketing. One of them is

Government taxes on products or services entering a country that primarily serve to raise prices on imports are referred to as

Dell established its company primarily with direct telephone- and Internet-based sales. In terms of Dell's global expansion strategy, which of the following statements is most accurate?

Those in favor of protectionism argue that it

The U.S. Rice Millers' Association claims that if the Japanese rice market were opened to imports by lowering __________, lower prices would save Japanese consumers $6 billion annually and the United States would gain a large share of the Japanese rice market.

All nations and regions of the world do not participate equally in world trade. World trade flows reflect

Why did Dell, Inc., embark on a global growth initiative?

Which of the following issues raises concerns about the ethics of protectionism?

An estimated 10 to 15 percent of world trade involves __________, the practice of using barter rather than money for making global sales.

In what way is Dell's expansion into the global arena a departure from its prior marketing practices?

The practice of shielding one or more sectors of a country's economy from foreign competition through the use of tariffs or quotas is referred to as

The balance of trade is the