Question 1

All of the following are reasons for dumping EXCEPT:
A) lowering unit costs by exploiting large-scale productions
B) attempting to avoid costly tariffs in the country to which the product is exported
C) attempting to maintain stable prices during periods of exchange rate fluctuations
D) temporarily distributing products in overseas markets to offset slack demand in the home market
E) trying to increase an overseas market share

Accepted Answer

Dumping is the sale of an exported product at a price lower than that charged for the same or a like product in the "home" market of the exporter.

Question 2

Boeing Company
Boeing Company has spent more than $100 million to create a major presence in China, complete with a major office complex, a large spare-parts facility, extra training programs for Chinese air crews, and a deal to buy fuselage sections for the 737 from local manufacturers. Asia is the fastest-growing aircraft market in the world. Asian carriers have been a major part of Boeing's sales, and Boeing predicts 40 percent of future air-traffic growth will come from Asia-Pacific travel, and it wants those passengers flying on Boeing jets. So, Boeing is jointly designing and building an American-Japanese-Chinese plane, all to lock out any European, South American, or even Asian threat to its market. To keep the fate of Asian aerospace in its hands, Boeing is steadily broadening its contractual relationship with Japan's three major players, Mitsubishi Heavy Industries, Kawasaki Heavy Industries, and Fuji Heavy Industries. The Japanese "heavies" make part of the airframe of the Boeing 767 and 20 percent of one of Boeing's newest planes, the 777. This strategy should ensure Boeing's dominance in Japan.
-Refer to Boeing Company.Boeing has utilized a global vision in marketing its planes in Asia.The company realizes different countries require different strategies but that effective global marketing is a key to success.Boeing is practicing:
A) global marketing
B) standard international marketing
C) global marketing standardization
D) the foreign vision
E) international selling schemes

Accepted Answer

Boeing is practicing global marketing by utilizing a global vision to effectively market goods and services across national boundaries.

Question 3

All of the following statements about the use of the Internet in global marketing are true EXCEPT:
A) Opening an e-commerce site on the Internet immediately puts a company in the international marketplace.
B) The new Internet economy is being restrained by the old bricks-and-mortar rules, regulations, and habits.
C) Consumers in some countries are reluctant to use credit cards to make purchases over the Internet.
D) FedEx is a global shipper that helps solve international e-commerce distribution.
E) Language barriers are limiting the potential of the Internet in international marketing.

Accepted Answer

Sophisticated language translation software can make any site accessible to persons around the world.

Question 4

Once marketing managers have determined a global product and promotion strategy,they can select the remainder of the marketing mix.However,entry into many developing nations presents special pricing problems because:
A) the rate of capital accumulation exceeds the rate of population growth
B) exchange rates caps
C) of price discrimination
D) there is a lack of mass purchasing power
E) advertising time on television is available for sale in all developed countries

Accepted Answer

Developing nations typically do not have mass purchasing power.

Question 5

Boeing Company
Boeing Company has spent more than $100 million to create a major presence in China, complete with a major office complex, a large spare-parts facility, extra training programs for Chinese air crews, and a deal to buy fuselage sections for the 737 from local manufacturers. Asia is the fastest-growing aircraft market in the world. Asian carriers have been a major part of Boeing's sales, and Boeing predicts 40 percent of future air-traffic growth will come from Asia-Pacific travel, and it wants those passengers flying on Boeing jets. So, Boeing is jointly designing and building an American-Japanese-Chinese plane, all to lock out any European, South American, or even Asian threat to its market. To keep the fate of Asian aerospace in its hands, Boeing is steadily broadening its contractual relationship with Japan's three major players, Mitsubishi Heavy Industries, Kawasaki Heavy Industries, and Fuji Heavy Industries. The Japanese "heavies" make part of the airframe of the Boeing 767 and 20 percent of one of Boeing's newest planes, the 777. This strategy should ensure Boeing's dominance in Japan.
-Refer to Boeing Company.Boeing has chosen the _____ method of entering the Japanese market.
A) dumping
B) contract manufacturing
C) licensing
D) direct investment
E) joint venture

Accepted Answer

Contract manufacturing is private-label manufacturing by a foreign company. Boeing has entered into a contractual agreement with Japanese manufacturers.

Question 6

Breathe Right
CNS, Inc. is the manufacturer of Breathe Right nasal strips, a spring-loaded adhesive device that can be stuck on your nose to open up the nasal passages. Since their introduction in the United States, Breathe Right strips have been used by athletes hoping to improve their performance through increased oxygen flow, snorers hoping for a sound night's sleep, and allergy and cold sufferers looking for relief from their stuffed noses. Because CNS is a small company, it initially had trouble promoting its product. Then San Francisco 49er Jerry Rice started regularly wearing one, and U.S. sales took off. Today, Breathe Right strips are marketed in more than 40 countries. When CNS decided to expand globally, its size made it look for a partner. It chose 3M because 3M already had a global market distribution system and because the Breathe Right strips complemented the 3M first-aid product line.
-Refer to Breathe Right.3M and CNS entered into a:
A) franchise
B) licensing agreement
C) direct countertrade
D) joint venture
E) contract manufacturing agreement

Accepted Answer

Joint ventures are when a domestic firm buys part of a foreign company or joins with a foreign company to create a new entity.

Question 7

Breathe Right
CNS, Inc. is the manufacturer of Breathe Right nasal strips, a spring-loaded adhesive device that can be stuck on your nose to open up the nasal passages. Since their introduction in the United States, Breathe Right strips have been used by athletes hoping to improve their performance through increased oxygen flow, snorers hoping for a sound night's sleep, and allergy and cold sufferers looking for relief from their stuffed noses. Because CNS is a small company, it initially had trouble promoting its product. Then San Francisco 49er Jerry Rice started regularly wearing one, and U.S. sales took off. Today, Breathe Right strips are marketed in more than 40 countries. When CNS decided to expand globally, its size made it look for a partner. It chose 3M because 3M already had a global market distribution system and because the Breathe Right strips complemented the 3M first-aid product line.
-Refer to Breathe Right.The same Breathe Right nasal strip you can buy in any pharmacy in the United States can also be purchased in 40 other countries.CNS used a _____ strategy.
A) mass marketing
B) product invention
C) market substitution
D) product adaptation
E) global market standardization

Accepted Answer

Global marketing standardization is production of uniform products that can be sold the same way all over the world.

Question 8

Boeing Company
Boeing Company has spent more than $100 million to create a major presence in China, complete with a major office complex, a large spare-parts facility, extra training programs for Chinese air crews, and a deal to buy fuselage sections for the 737 from local manufacturers. Asia is the fastest-growing aircraft market in the world. Asian carriers have been a major part of Boeing's sales, and Boeing predicts 40 percent of future air-traffic growth will come from Asia-Pacific travel, and it wants those passengers flying on Boeing jets. So, Boeing is jointly designing and building an American-Japanese-Chinese plane, all to lock out any European, South American, or even Asian threat to its market. To keep the fate of Asian aerospace in its hands, Boeing is steadily broadening its contractual relationship with Japan's three major players, Mitsubishi Heavy Industries, Kawasaki Heavy Industries, and Fuji Heavy Industries. The Japanese "heavies" make part of the airframe of the Boeing 767 and 20 percent of one of Boeing's newest planes, the 777. This strategy should ensure Boeing's dominance in Japan.
-Refer to Boeing Company.The new American-Japanese-Chinese plane Boeing plans to design and build gives partial ownership to the manufacturing partners involved in the project.This is an example of:
A) direct investment
B) a joint venture
C) buying-for-export agreements
D) market groupings
E) a contract manufacturing agreement

Accepted Answer

Joint venture is when a domestic firm buys part of a foreign company or joins with a foreign company to create a new entity.

Question 9

In a newspaper release,Corning,Inc.announced it had received a favorable ruling from China's Ministry of Commerce on allegations that it was selling its fiber more cheaply in China than in other countries.Corning was falsely accused of:
A) dumping
B) offloading
C) boycotting
D) repatriating
E) crossdocking

Accepted Answer

Dumping is selling a product in a foreign market at a price below the price charged in the home market.

Question 10

_____ is generally defined as the sale of an exported product at a price lower than that charged for the same or a similar product in the home market of the exporter.
A) Export reengineering
B) Crossdocking
C) Boycotting
D) Dumping
E) Countertrading

Accepted Answer

This is the definition of dumping.

Question 11

The European Union accused South Korea of selling ships at a loss in an attempt to push its European rivals out of the market.In other words,South Korea was accused of:
A) dumping
B) illegal importing
C) countertrading
D) fiscal impropriety
E) using an illegal cartel

Accepted Answer

Dumping is the sale of an exported product at a price lower than that charged for the same product in the home market of the exporter (South Korea).

Question 12

Currency markets operate under a system in which the prices of different currencies move up or down based on the demand for and supply of each currency.This practice is called:
A) countertrading
B) floating exchange rates
C) variable purchasing power
D) flexible monetary policies
E) purchasing power elasticity

Accepted Answer

This is the definition of floating exchange rates.

Question 13

Boeing Company
Boeing Company has spent more than $100 million to create a major presence in China, complete with a major office complex, a large spare-parts facility, extra training programs for Chinese air crews, and a deal to buy fuselage sections for the 737 from local manufacturers. Asia is the fastest-growing aircraft market in the world. Asian carriers have been a major part of Boeing's sales, and Boeing predicts 40 percent of future air-traffic growth will come from Asia-Pacific travel, and it wants those passengers flying on Boeing jets. So, Boeing is jointly designing and building an American-Japanese-Chinese plane, all to lock out any European, South American, or even Asian threat to its market. To keep the fate of Asian aerospace in its hands, Boeing is steadily broadening its contractual relationship with Japan's three major players, Mitsubishi Heavy Industries, Kawasaki Heavy Industries, and Fuji Heavy Industries. The Japanese "heavies" make part of the airframe of the Boeing 767 and 20 percent of one of Boeing's newest planes, the 777. This strategy should ensure Boeing's dominance in Japan.
-Refer to Boeing Company.Boeing has chosen the _____ method of entry into the Chinese market.
A) dumping
B) contract manufacturing
C) licensing
D) direct investment
E) joint venture

Accepted Answer

Boeing invested more than $100 million to open a new headquarters and establish manufacturing capability in China.This is direct investment.

Question 14

International trade does not always involve cash.Sometimes companies accept all or part of the payment for goods or services in the form of other goods or services.This is known as:
A) export trading
B) crossdocking
C) exchange modification
D) domestic barter
E) countertrade

Accepted Answer

In countertrade,all or part of the payment for goods or services is in the form of other goods.

Question 15

Boeing Company
Boeing Company has spent more than $100 million to create a major presence in China, complete with a major office complex, a large spare-parts facility, extra training programs for Chinese air crews, and a deal to buy fuselage sections for the 737 from local manufacturers. Asia is the fastest-growing aircraft market in the world. Asian carriers have been a major part of Boeing's sales, and Boeing predicts 40 percent of future air-traffic growth will come from Asia-Pacific travel, and it wants those passengers flying on Boeing jets. So, Boeing is jointly designing and building an American-Japanese-Chinese plane, all to lock out any European, South American, or even Asian threat to its market. To keep the fate of Asian aerospace in its hands, Boeing is steadily broadening its contractual relationship with Japan's three major players, Mitsubishi Heavy Industries, Kawasaki Heavy Industries, and Fuji Heavy Industries. The Japanese "heavies" make part of the airframe of the Boeing 767 and 20 percent of one of Boeing's newest planes, the 777. This strategy should ensure Boeing's dominance in Japan.
-Refer to Boeing Company.The Boeing facility in China is only one branch of this huge organization.Boeing can be called a(n):
A) domestic trader
B) cultural trader
C) multinational corporation
D) export agent
E) localized corporation

Accepted Answer

Boeing is heavily involved in international marketing and sales worldwide and is a multinational organization.

Question 16

Breathe Right
CNS, Inc. is the manufacturer of Breathe Right nasal strips, a spring-loaded adhesive device that can be stuck on your nose to open up the nasal passages. Since their introduction in the United States, Breathe Right strips have been used by athletes hoping to improve their performance through increased oxygen flow, snorers hoping for a sound night's sleep, and allergy and cold sufferers looking for relief from their stuffed noses. Because CNS is a small company, it initially had trouble promoting its product. Then San Francisco 49er Jerry Rice started regularly wearing one, and U.S. sales took off. Today, Breathe Right strips are marketed in more than 40 countries. When CNS decided to expand globally, its size made it look for a partner. It chose 3M because 3M already had a global market distribution system and because the Breathe Right strips complemented the 3M first-aid product line.
-Refer to Breathe Right.In the United States,one of the standard methods for introducing a new product is couponing,but many countries prohibit the issuing of coupons.This prohibition would represent a(n)_____ element of the global environment.
A) cultural
B) economic
C) legal
D) technological
E) demographic

Accepted Answer

Many legal structures are designed to either encourage or limit trade.

Question 17

Breathe Right
CNS, Inc. is the manufacturer of Breathe Right nasal strips, a spring-loaded adhesive device that can be stuck on your nose to open up the nasal passages. Since their introduction in the United States, Breathe Right strips have been used by athletes hoping to improve their performance through increased oxygen flow, snorers hoping for a sound night's sleep, and allergy and cold sufferers looking for relief from their stuffed noses. Because CNS is a small company, it initially had trouble promoting its product. Then San Francisco 49er Jerry Rice started regularly wearing one, and U.S. sales took off. Today, Breathe Right strips are marketed in more than 40 countries. When CNS decided to expand globally, its size made it look for a partner. It chose 3M because 3M already had a global market distribution system and because the Breathe Right strips complemented the 3M first-aid product line.
-Refer to Breathe Right.How people value a sound night's sleep is an example of which element of the global environment?
A) culture
B) natural
C) socioeconomic
D) technical
E) regulatory

Accepted Answer

Culture to any society is the common set of values shared by its citizens that determines what is socially acceptable.

Question 18

Breathe Right
CNS, Inc. is the manufacturer of Breathe Right nasal strips, a spring-loaded adhesive device that can be stuck on your nose to open up the nasal passages. Since their introduction in the United States, Breathe Right strips have been used by athletes hoping to improve their performance through increased oxygen flow, snorers hoping for a sound night's sleep, and allergy and cold sufferers looking for relief from their stuffed noses. Because CNS is a small company, it initially had trouble promoting its product. Then San Francisco 49er Jerry Rice started regularly wearing one, and U.S. sales took off. Today, Breathe Right strips are marketed in more than 40 countries. When CNS decided to expand globally, its size made it look for a partner. It chose 3M because 3M already had a global market distribution system and because the Breathe Right strips complemented the 3M first-aid product line.
-Refer to Breathe Right.3M is an example of a(n):
A) ethnocentric organization
B) standard international market
C) multinational corporation
D) expatriated organization
E) organization with no domestic base

Accepted Answer

A multinational corporation is a company that is heavily engaged in international trade,beyond exporting and importing.

Question 19

Breathe Right
CNS, Inc. is the manufacturer of Breathe Right nasal strips, a spring-loaded adhesive device that can be stuck on your nose to open up the nasal passages. Since their introduction in the United States, Breathe Right strips have been used by athletes hoping to improve their performance through increased oxygen flow, snorers hoping for a sound night's sleep, and allergy and cold sufferers looking for relief from their stuffed noses. Because CNS is a small company, it initially had trouble promoting its product. Then San Francisco 49er Jerry Rice started regularly wearing one, and U.S. sales took off. Today, Breathe Right strips are marketed in more than 40 countries. When CNS decided to expand globally, its size made it look for a partner. It chose 3M because 3M already had a global market distribution system and because the Breathe Right strips complemented the 3M first-aid product line.
-Refer to Breathe Right.To market the nasal strips in countries outside the United States,CNS and 3M provided the strips to the national sports teams.For example,sales in South Africa took off when the entire South African rugby team wore the strips when they won the World Cup of rugby.This example primarily illustrates the use of which element of the global marketing mix?
A) production
B) publicity
C) promotion
D) distribution
E) product

Accepted Answer

Promotion is the communication's arm of the marketing mix.

Question 20

The Canadian magazine industry accused U.S.magazine publishers of _____,selling the magazines in Canada at a lower price than in the United States.
A) dumping
B) offloading
C) boycotting
D) repatriating
E) crossdocking

Accepted Answer

Dumping is selling a product in a foreign market at a price below the price charged in the home market.

Quiz 5: Developing a Global Vision

All of the following are reasons for dumping EXCEPT:

All of the following statements about the use of the Internet in global marketing are true EXCEPT:

Once marketing managers have determined a global product and promotion strategy,they can select the remainder of the marketing mix.However,entry into many developing nations presents special pricing problems because:

In a newspaper release,Corning,Inc.announced it had received a favorable ruling from China's Ministry of Commerce on allegations that it was selling its fiber more cheaply in China than in other countries.Corning was falsely accused of:

_____ is generally defined as the sale of an exported product at a price lower than that charged for the same or a similar product in the home market of the exporter.

The European Union accused South Korea of selling ships at a loss in an attempt to push its European rivals out of the market.In other words,South Korea was accused of:

Currency markets operate under a system in which the prices of different currencies move up or down based on the demand for and supply of each currency.This practice is called:

International trade does not always involve cash.Sometimes companies accept all or part of the payment for goods or services in the form of other goods or services.This is known as:

The Canadian magazine industry accused U.S.magazine publishers of _____,selling the magazines in Canada at a lower price than in the United States.