Question 1

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?
A) Culture
B) Legal
C) Economic
D) Technological
E) Natural resources

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 2

The United States is selling more domestically produced products in other countries than any other country in the world.This means the United States is the world leader in:
A) quota making
B) exporting
C) tariff trading
D) dumping
E) licensing

Accepted Answer

Exporting is selling domestically produced products to buyers in other countries.

Question 3

Vast differences in natural resources create all of the following EXCEPT:
A) potential for military intervention
B) shifts in wealth between nations
C) inflation and recession
D) global international dependencies
E) export opportunities for countries with no natural resources

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 4

Which method of entering the global marketplace would be most risky?
A) Licensing
B) Direct investment
C) Contract manufacturing
D) Joint ventures
E) Exporting

Accepted Answer

See Exhibit 5.3.

Question 5

International Marketing,Inc.is a company located in Brazil that assists businesses exporting products to Brazil.This company helps with financing,shipping,and any aspect of marketing a product from another country to Brazil.This company is an example of a(n):
A) agent broker
B) export agent
C) export broker
D) buyer for export
E) import broker

Accepted Answer

An export agent is an intermediary who acts like a manufacturer's agent for the exporter and lives in the foreign market.

Question 6

Which method of entering the global marketplace would be LEAST risky?
A) Exporting
B) Licensing
C) Contract manufacturing
D) Joint ventures
E) Direct investment

Accepted Answer

See Exhibit 5.3.

Question 7

The role of a domestic company that sells to an export merchant (also called a buyer for export)is to:
A) guide the marketing actions of the merchant as the goods are sold in foreign countries.
B) pay all transportation, warehousing, and marketing expenses.
C) sell the product to that merchant who resells the product in the foreign country without the aid or input of the original manufacturer.
D) broker a partnership agreement such as a joint venture.
E) dictate conditions of sale in foreign countries.

Accepted Answer

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

Question 8

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.
A) demographic
B) political
C) cultural
D) educational
E) country resource

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.

Question 9

_____ is a legal process whereby a firm agrees to let another firm use its manufacturing process,trademarks,patents,trade secrets,or other proprietary knowledge in return for a fee or royalty.
A) A joint venture
B) Divestment
C) Licensing
D) A principal-agent agreement
E) A contract manufacturing arrangement

Accepted Answer

This is the definition of licensing.

Question 10

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.
A) demographic
B) lifestyle
C) natural
D) cultural
E) economic

Accepted Answer

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

Question 11

A(n)_____ is a global intermediary who brings the buyer and seller together.
A) buyer for export
B) export agent
C) license agent
D) import agent
E) export broker

Accepted Answer

An export broker is an intermediary who plays the traditional broker's role by bringing buyer and seller together.

Question 12

The G-20 has reached agreement regarding policies for all of the following EXCEPT:
A) combating terrorist financing
B) dealing with financial crises
C) reducing abuse in the financial system
D) streamlining wage and price controls
E) economic growth

Accepted Answer

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

Question 13

The _____ is an intermediary in the global market who assumes all risks and sells globally internationally for its own account.The domestic manufacturer usually treats it like a domestic customer.
A) buyer for export
B) export agent
C) joint venturer
D) contract manufacturer
E) market group

Accepted Answer

This is the definition of a buyer for export.

Question 14

Franchising is a form of:
A) contract marketing
B) international exporting
C) licensing
D) direct exporting
E) countertrading

Accepted Answer

Franchising is a form of licensing that has grown rapidly in recent years.

Question 15

When Krispy Kreme decided to expand its operation internationally,it chose to first make its doughnuts available in Canada to minimize its risk.In accordance with the policy of risk minimization,the company sold the right to manufacture and sell its doughnuts to Canadians.In other words,Krispy Kreme used:
A) contract manufacturing
B) direct investment
C) importing
D) a strategic alliance
E) licensing

Accepted Answer

Krispy Kreme used franchising,which is a form of licensing.Franchising offers only slightly more risk than exporting.

Question 16

Carlos Hernandez owns a company in Miami that purchases products from U.S.manufacturers for export to several countries in Central and South America.Carlos is a(n):
A) licensing agent
B) buyer for export
C) export broker
D) export agent
E) export importer

Accepted Answer

A buyer for export,also called an export merchant,is usually treated like a domestic customer by the domestic manufacturer because it buys products and sells them globally.

Question 17

_____ are foreign sales agents-distributors who live in a foreign country and represent a domestic company in sales situations.They perform the same functions as domestic manufacturers' agents who help with financing and shipping.
A) Export agents
B) Export brokers
C) Import broker
D) Buyers for export
E) Licensing agents

Accepted Answer

This is the definition of an export agent.

Question 18

A U.S.licensor can try to prevent a licensee from voiding its contract and using what it has learned to create a competitor by:
A) using lawyers from both countries to write the licensing agreement.
B) insisting that all licensees have a published code of ethics.
C) having the licensee pay a fee for the use of the manufacturing process, trademark, patent, or other proprietary knowledge.
D) locally registering patents and trademarks to the U.S. firm, not to the licensee.
E) avoiding the use of any patents and trademarks.

Accepted Answer

Even with lawyers writing it and a code of ethics,there is nothing to prevent a licensee from voiding the contract.Licensees typically pay a fee or a royalty to the licensor.Without patents and trademarks,protection becomes almost impossible.

Question 19

DeLouis owns an agency that specializes in bringing international buyers in contact with U.S.companies to facilitate global trade.What type of intermediary is DeLouis?
A) Buyer for export
B) Export broker
C) License agent
D) Import agent
E) Export agent

Accepted Answer

An export broker is an intermediary who plays the traditional role by bringing buyer and seller together.

Question 20

Which list correctly ranks the methods of entering the global marketplace in increasing order of risk?
A) Exporting, licensing and franchising, contract manufacturing, joint venture, and direct investment
B) Importing, contract manufacturing, licensing and franchising, joint venture, and direct investment
C) Licensing, franchising, contract manufacturing, joint venture, direct investment, and exporting
D) Franchising, contract manufacturing, joint venture, direct investment, importing, and licensing
E) Importing, contract manufacturing, joint venture, direct investment, and exporting

Accepted Answer

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

Quiz 9: Developing a Global Vision

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

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

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

International Marketing,Inc.is a company located in Brazil that assists businesses exporting products to Brazil.This company helps with financing,shipping,and any aspect of marketing a product from another country to Brazil.This company is an example of a(n) :

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

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

_____ is a legal process whereby a firm agrees to let another firm use its manufacturing process,trademarks,patents,trade secrets,or other proprietary knowledge in return for a fee or royalty.

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.

A(n) _____ is a global intermediary who brings the buyer and seller together.

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

The _____ is an intermediary in the global market who assumes all risks and sells globally internationally for its own account.The domestic manufacturer usually treats it like a domestic customer.

Franchising is a form of:

Carlos Hernandez owns a company in Miami that purchases products from U.S.manufacturers for export to several countries in Central and South America.Carlos is a(n) :

_____ are foreign sales agents-distributors who live in a foreign country and represent a domestic company in sales situations.They perform the same functions as domestic manufacturers' agents who help with financing and shipping.

A U.S.licensor can try to prevent a licensee from voiding its contract and using what it has learned to create a competitor by:

DeLouis owns an agency that specializes in bringing international buyers in contact with U.S.companies to facilitate global trade.What type of intermediary is DeLouis?

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