Question 1

________ is the primary market for U.S.franchisers.

Accepted Answer

Europe is the primary market for U.S. franchisers, with over 40% of all international franchises located there. Mexico, South America, and the Caribbean are also important markets, but they do not surpass Europe in terms of the number of U.S. franchises established in these regions.

Question 2

The first step to becoming a truly global company is to:

Accepted Answer

The first step to becoming a truly global company is to shift from a local or regional mindset to a global attitude. This means taking into account the cultural, economic, and political differences of the countries where the business operates or plans to operate. It also involves developing a global strategy that aligns with the company's overall goals and values. This step is crucial because it sets the foundation for future expansion and success in the global market. Establishing an export program or finding a joint venture partner may be part of the global strategy, but they are not the first step. Hiring motivated, multilingual managers may also be beneficial, but it is not the primary step to becoming a global company.

Question 3

________ is said to link trading partners,whether they are giant corporations or single individuals with a small business.

Accepted Answer

Technology can provide a platform for trading partners to connect and conduct business transactions, regardless of their size or location. It can also enhance communication and collaboration between the parties involved.

Question 4

The reality of "going global" is that the entrepreneur must understand the needs of the:

Accepted Answer

In order to successfully expand a business globally, it is crucial to understand the needs and preferences of potential customers in different markets. This includes understanding cultural differences, language barriers, and other factors that may affect how a product or service is perceived and received by customers. While understanding the needs of suppliers, government regulations, and employees is also important, customers are ultimately the ones who will determine a business's success or failure in a particular market.

Question 5

A relatively easy way of getting into international marketing,which currently handles about 10% of all U.S.exports,is through ________ who act as distributors in foreign countries for domestic companies of all sizes.

Accepted Answer

The answer of A relatively easy way of getting into...

Question 6

As with any new venture,the entrepreneur needs to ask,and answer,all of the following questions about the business except:

Accepted Answer

The question about efficiently traveling to, from, and within the global market may not be applicable or necessary for all types of businesses, and it is not directly related to the potential for profitability, resources, skills, or commitment.

Question 7

A(n)________ is a government- or privately-owned company established in a foreign country for the purpose of buying goods made there.

Accepted Answer

A resident buying office is a company established in a foreign country for the purpose of buying goods made there. Export trading companies, foreign distributors, and export merchants are all involved in the export process rather than the buying of goods in a foreign country.

Question 8

Expanding a small business into international markets:

Accepted Answer

Expanding into international markets often helps small businesses to tap into new markets, access new customers and grow faster. It also allows them to diversify their revenue streams and better survive competition. However, success is not guaranteed and careful planning and execution are necessary. GATT (General Agreement on Tariffs and Trade) no longer exists; it has been replaced by the World Trade Organization (WTO). Additionally, the statement about business failure based on annual revenue is not a universally applicable rule.

Question 9

Small businesses go global:

Accepted Answer

Small businesses often go global in order to ensure their survival and success in the long run, as domestic markets may not be large enough to sustain their growth. This can happen at any point in their existence as a company, not just between their fifth and seventh year or through joint ventures with large companies. While large businesses may go global for a variety of reasons, including expanding their market share and accessing new resources, small businesses are typically driven by the need to stay competitive and grow.

Question 10

An export trading company is:

Accepted Answer

An export trading company is a business that buys and sells products in many countries, either in its own name or as an agent for its buyer-seller clients. It operates in the international trade market and facilitates the sale of goods between domestic and foreign companies.

Question 11

A(n)________ is a business that buys and sells products in a number of countries,offering a range of services-importing,exporting,shipping,distributing,and others-to their clients.

Accepted Answer

An export trading company is a business that purchases goods from domestic or foreign manufacturers and then sells them to customers overseas. They offer a range of services related to buying and selling products internationally, including importing, exporting, shipping, and distributing. They act as intermediaries between manufacturers and foreign buyers, simplifying the process of importing and exporting goods. Foreign joint ventures are businesses established between two or more companies from different countries, whereas foreign licensees are companies that have been granted the right to produce and sell a particular product or use a specific technology under license in a foreign country. Resident buying offices are local offices established by foreign companies to purchase goods from local manufacturers.

Question 12

The type of companies that are an important channel of foreign distribution for small companies just getting started in international trade or for those lacking the resources to assign their own people to foreign markets are referred to as:

Accepted Answer

The answer of The type of companies that are an...

Question 13

________ is/are one of the trading intermediaries a small company can use to enter the global marketplace.

Accepted Answer

Export merchants act as intermediaries between small companies and foreign buyers, providing services such as marketing, shipping, and financing to help the company enter the global marketplace. Joint ventures, international franchising, and establishing international locations require larger investments and may be less feasible for small companies.

Question 14

The simplest and least expensive way to conduct international business is through:

Accepted Answer

The World Wide Web offers a low-cost way to reach an international audience and conduct business without the need for physical presence or extensive resources. This approach is often used by small businesses or startups with limited budgets. It allows for easy communication and transactions with global customers, suppliers, and partners.

Question 15

A small business owner needs to consider several questions before launching an international venture,such as:

Accepted Answer

The answer of A small business owner needs to consider...

Question 16

Often joint ventures fail because the entrepreneur didn't:

Accepted Answer

All of the above options are important factors to consider in ensuring joint venture success. Defining important issues at the outset, understanding each partner's objectives, and selecting a partner with similar values and standards of conduct can all contribute to a successful joint venture partnership.

Question 17

Which of the following is true about global competition?

Accepted Answer

Global competition often requires companies to focus more on the needs and wants of customers in order to stand out and succeed in the market. This can lead to increased emphasis on customer satisfaction and feedback.

Question 18

________ involves a transaction in which a company selling goods in a foreign country agrees to promote investment and trade in that country.

Accepted Answer

Countertrade refers to a type of transaction in which a company agrees to promote investment and trade in a foreign country in exchange for the sale of goods to that country. This can take various forms, such as offset agreements, buyback agreements, or counterpurchase agreements. Countertrade is often used by companies to overcome trade barriers or currency restrictions in certain countries.

Question 19

Becoming a global business depends on instilling a global culture throughout the organization that permeates:

Accepted Answer

To become a global business, it is important for the organization to instill a global culture that permeates everything the company does. This means that every aspect of the organization, from its values and beliefs to its products and services, should be aligned with a global perspective. Only then can the organization achieve true global success and compete on a global scale.

Question 20

A resident buying office is:

Accepted Answer

A resident buying office is a facility set up in a foreign country, either owned by a government or a business, to purchase products that are manufactured there. This option accurately describes a resident buying office. Options A, B, and D describe a trading company, a distributorship, and a licensing agreement, respectively.

Quiz 12: Global Marketing Strategies