Deck 6: Serving Global Markets

Question 1

Which of the following is NOT considered a trade barrier to an exporter?

A) tariffs
B) import quotas
C) subsidies
D) related-party trade

Answer 1

D

Question 2

Which of the following is NOT considered a part of a nation's infrastructure?

A) wholesale networks
B) transportation networks
C) communications systems
D) energy facilities

Answer 2

A

Question 3

When entering a foreign market, care must be taken to ensure that product names and advertising slogans are translated correctly and do not cause misunderstandings among foreign consumers.What element of the international environment does this illustrate?

A) social-cultural
B) political-legal
C) economic
D) technological

Answer 3

A

Question 4

Who is the largest private employer in the world?

A) General Motors Corporation
B) McDonalds
C) Microsoft
D) Walmart

Question 5

In order for a marketer to operate efficiently in a foreign country, what must be in place and stable to facilitate trade?

A) a free trade agreement
B) infrastructure
C) tariffs
D) a labour force

Question 6

Procter & Gamble successfully introduced a lower-priced version of its popular Tide laundry detergent to the rural Chinese market, and a higher-priced version to city-dwellers in China.What does this illustrate about succeeding in a foreign market?

A) Marketers must look for alternative distribution channels.
B) Marketers must partner with a local marketing firm.
C) Marketers must adapt a product to local preferences and culture.
D) Marketers must maintain the exact product characteristics that were successful in the domestic market.

Question 7

Who provides advice and assistance to Canadian businesses that want to enter foreign markets?

A) the World Trade Organization
B) the Trade Commissioner Service
C) the Canadian Tourism Commission
D) the International Monetary Fund

Question 8

What accounts for 70 percent of Canada's gross domestic product?

A) agriculture
B) manufacturing
C) retail
D) services

Question 9

In addition to natural resources, what exports are equally as important to Canada's economy?

A) processed and packaged foods
B) machinery and automotive products
C) low-technology trade goods
D) melons and other wet fruits

Question 10

What is a characteristic that many North American economies have for products that result in increased importance of global trade?

A) a growing market
B) a technologically advanced market
C) an advanced market
D) a mature market

Question 11

What idea is the basis for the European Union currency, the euro?

A) Tying other European currencies to the euro will stabilize exchange rates.
B) The presence of the euro will eliminate soft currencies from the marketplace.
C) Having a single currency will strengthen Europe's global competitiveness.
D) The euro will eventually be used in Eastern Europe.

Question 12

Which of the following is NOT a reason why global trade is vital to a nation and its marketers?

A) market expansion
B) increased dependence on domestic economic conditions
C) production and distribution economies
D) growth opportunities

Question 13

What are many Western firms utilizing in order to stay abreast of changing political and legal environments that exist in various foreign countries?

A) the Internet
B) political risk assessment units
C) the World Trade Organization
D) consumer research groups

Question 14

What do ISO 9000 standards set requirements for?

A) quality in goods and services
B) prices
C) worker compensation
D) environmental protection

Question 15

Which of the following markets are strong for a nation with low per-capita incomes?

A) automobiles and electronics
B) industrial machinery
C) agricultural hand tools
D) technical services

Question 16

What two categories can international trade be divided into?

A) exporting and importing
B) national and international
C) general and foreign
D) direct and indirect

Question 17

What do ISO 14000 standards set requirements for?

A) product quality
B) prices
C) worker compensation
D) environmental protection

Question 18

Following the United States, who is Canada's second largest trading partner?

A) the European Union
B) Japan
C) China
D) United Kingdom

Question 19

Before entering a country, what is the underlying foundation marketers need to determine it has?

A) a moral code
B) a legal system
C) an infrastructure
D) a trade organization

Question 20

What is the basic purpose of revenue tariffs?

A) to raise money for the country into which the products are being imported
B) to raise the retail prices of imported products to match or exceed those of similar domestic products
C) to counter the effects of protective tariffs on the domestic market
D) to stabilize the prices of imported goods

Question 21

What is a complete ban on the import of a product known as?

A) an import quota
B) an embargo
C) a revenue tariff
D) a protective tariff

Question 22

What type of progress has the World Trade Organization made toward its goals of liberalizing world financial services, telecommunications, and maritime markets?

A) slow-its activities have focused on complaint resolution, not trade barriers
B) rapid-several major new treaties have been ratified in the last two years
C) about as expected-there have been the usual victories and the usual defeats
D) relatively fast-some authorities claim a new world order by the year 2016

Question 23

What organization was established as a result of the General Agreement on Tariffs and Trade?

A) North American Free Trade Agreement
B) European Union
C) World Trade Organization
D) Free Trade Area of the Americas

Question 24

What is an organization called that provides first-time exporters with expertise in locating foreign buyers, handling paperwork, and conforming to local labelling and testing laws?

A) an export facilitator
B) an export title company
C) a trade assistance corporation
D) an export management company

Question 25

Assume China and Canada are involved in a trade dispute.Which organization will attempt to resolve the dispute?

A) United Nations
B) World Trade Organization
C) European Union
D) General Agreement on Tariffs and Trade

Question 26

Which of the following is an advantage of foreign licensing over exporting?

A) access to the local partners' pricing
B) use of the local partner's distribution channels
C) capital investment in foreign country
D) slow entry into a foreign market

Question 27

Which of the following is one of the major policy initiatives of the World Trade Organization?

A) increasing the average level of education worldwide
B) liberalizing world financial services
C) promoting and protecting the environment
D) regulating automobile production by less-advanced nations

Question 28

What have a group of nations created when they agree to the exchange of goods among themselves by abolishing tariffs and trade restrictions?

A) a common market
B) a customs union
C) a trading block
D) a free trade area

Question 29

What is the term for a contractual arrangement in which a wholesaler or retailer agrees to meet the operating requirements of a manufacturer?

A) foreign licensing
B) franchising
C) joint licensing
D) offset licensing

Question 30

What is the basic purpose of protective tariffs?

A) to raise money for the country into which the products are being imported
B) to raise the retail prices of imported products to match or exceed those of similar domestic products
C) to counter the effects of tariffs on the domestic market
D) to stabilize the prices of imported goods

Question 31

Which of the following is one requirement for companies regarding exchange control?

A) Companies that export need to sell foreign currencies to a foreign agency or the central bank.
B) Companies need to support domestic industry through grants of money or research support.
C) Companies need a complete ban on the importation of a product.
D) Companies that sell products in a foreign market price the products cheaper than they are sold domestically.

Question 32

What type of multinational organization features the no tariff exchange of goods among its members and a uniform tariff for trade with nonmember nations?

A) common market
B) administration common
C) customs union
D) free trade area

Question 33

The Republic of Eastern Africa imposes a duty on imported goods to pay for government services.What is this BEST described as?

A) a protective tariff
B) a revenue tariff
C) an import quota
D) a subsidy

Question 34

A company sells products to a foreign market at a price lower than it sells within its own country.What is this practice known as?

A) dumping
B) inventory reduction
C) open-market theory
D) competitive counterstrategy

Question 35

What is the term for a contractual agreement by which a domestic firm grants foreign marketers the right to distribute a firm's merchandise or use its trademark, patent, or process in a specified geographic area?

A) subcontracting
B) franchising
C) reciprocal partnership
D) foreign licensing

Question 36

What would be included in the Free Trade Area of the Americas when goals are completed?

A) Existing nations will become members of the World Trade Organization.
B) The World Trade Organization would be the largest free-trade zone in the world.
C) It would include nations from Central, North and South America.
D) More intensive customs procedures via General agreement on Trades and Tariffs.

Question 37

What is the term for an arrangement in which a small firm teams with, and serves as a subcontractor for, a larger international company on a foreign project?

A) international trade mentorship
B) trade facilitation
C) an offset agreement
D) a mutual trade agreement

Question 38

What is the ideal way for a nation to stop a foreign company from dumping?

A) pay the exporter with soft currency
B) impose protective tariffs
C) cite international law
D) appeal to the International Monetary Fund

Question 39

What is a company's first step toward successful global marketing?

A) to prepare an international business plan
B) to seek to license a foreign company
C) to enter into a joint venture with a foreign company
D) to establish marketing operations in a foreign country

Question 40

What is the goal of the EU?

A) to establish manufacturing standards
B) to expand globally
C) to remove all barriers to free trade among its members
D) to completely absorb the former Eastern bloc of nations

Question 41

Which of the following are alternative strategies from which international marketers can choose when selecting an appropriate product/promotion strategy?

A) product adaptation and dual adaptation
B) promotion adaptation and direct exporting
C) countertrading and product invention
D) global marketing and multinational marketing

Question 42

What is the international market-entry strategy that involves high levels of involvement and risk potential and also offers a competitive advantage over other alternatives?

A) franchising
B) offset agreement
C) foreign licensing
D) international direct investment

Question 43

Dell is famous for its build-to-order computers; however, the company decided to sell prebuilt computers in China's retail stores.What is this a result of?

A) a global marketing strategy
B) a multinational marketing strategy
C) a countertrade policy
D) a multi-domestic marketing strategy

Question 44

What type of standard marketing strategy modifies only minimally for use in each of the firm's foreign markets?

A) a single-space marketing strategy
B) a monolithic marketing strategy
C) a global marketing strategy
D) a multi-domestic marketing strategy

Question 45

Which of the following is the world's most frequently spoken language?

A) Spanish
B) English
C) Mandarin
D) Arabic

Question 46

What type of constraint can MOST likely limit pricing decisions in a foreign market?

A) ecological
B) political
C) social
D) ethical

Question 47

Which of the following BEST describes IBM and General Electric?

A) global exporters
B) multinational corporations
C) domestic corporations
D) global importers

Question 48

What does a multi-domestic marketing strategy indicate about a firm?

A) that it customizes its marketing decisions to effectively reach individual marketplaces
B) that it disregards the principles of market segmentation
C) that it considers all foreign countries to have equally competitive situations
D) that it employs universal promotional messages

Question 49

Growth in the services of developing markets is MOST likely to continue due to which of the following?

A) defined service measurements
B) advancing information technology
C) ongoing categorization improvements
D) data comparison

Question 50

Which of the following is NOT a reason why Canada is an attractive market for international marketers?

A) high levels of discretionary income
B) political stability
C) low level of domestic competitors
D) well-controlled economy

Question 51

In order to gain access to some foreign markets, a firm may barter products rather than selling them for cash.What is this referred to as?

A) fair trade
B) product adaptation
C) countertrade
D) multi-domestic marketing

Question 52

Toyota, a Japanese firm, builds a factory in Ontario to make vehicles to be marketed to Canadians.How is this strategy BEST described?

A) as a joint venture between Toyota and the Ontario provincial government seeking to increase employment opportunities
B) as foreign marketing by Toyota
C) as international direct investment by Toyota in Canada
D) as indirect exporting

Question 53

What is developing a completely new product to take advantage of a unique foreign opportunity called?

A) product development
B) product commercialization
C) product invention
D) product origination

Question 54

What is a firm with significant operations and marketing activities outside its home country called?

A) a monopoly
B) an active exporter
C) a multinational corporation
D) an overseas marketer

Question 55

Which of the following advantages does NOT ordinarily arise out of customizing marketing strategies for different international markets?

A) lower production costs per unit
B) attention to local preferences
C) products tailored to target market needs
D) promotions that appeal to local tastes

Question 56

Which of the following need NOT be considered in making an international expansion decision?

A) precise domestic distribution duplication
B) quality of the firm's products
C) currently available transportation options
D) warehousing facilities

Question 57

Which of the following BEST describes the role of The Organization of Petroleum Exporting Countries as a marketing organization?

A) It uses a pricing strategy of controlling world prices through collective action.
B) It is regulated by NAFTA and the EU.
C) It uses countertrade to obtain valuable foreign investments.
D) It was formed to address the growing competition from Venezuela and North Sea crude exploration.

Question 58

A Canadian firm is considering marketing its products in another country.The new market is attractive, but the country's cultural and legal environments are different from those in Canada.Based only on the information provided, how should the firm proceed?

A) Avoid the new market completely and focus only on the domestic market.
B) Enter the new market using the same marketing strategy the firm uses in Canada.
C) Enter the new market using the same marketing strategy the firm employs in existing foreign markets.
D) Enter the new market using a new marketing strategy designed for that specific market.

Question 59

Which of the following is NOT an example of international direct investment by a firm?

A) a foreign sales office
B) overseas marketing subsidiaries
C) acquisition of an existing foreign company
D) an export management company

Question 60

In the international market, what does a product adaptation strategy combine?

A) changes in promotion strategy with changes in the product itself
B) the domestic product with promotional changes tuned to the foreign market
C) product changes with the same promotional strategy used in the domestic market
D) product characteristics not seen in the home country with a foreign promotional strategy

Question 61

More than seven of every ten dollars included in Canada's Gross Domestic Product comes from services.

Question 62

Administrative trade barriers include which of the following?

A) quotas on exports
B) liberal standards for imports
C) import subsidies
D) customs barriers

Question 63

FedEx has a slogan, "FedEx Delivers to a Changing World" and has run this slogan in Canada, Brazil, China, and additional countries.This example BEST illustrates which of the following?

A) straight extension
B) product adaptation
C) promotion adaptation
D) dual adaptation

Question 64

The United States is Canada's largest trading partner.

Question 65

The largest category, with respect to dollar amount, that Canada measures service exports and imports is which of the following?

A) travel
B) transportation
C) management
D) commercial

Question 66

Manufacturing accounts for 75 percent of all employment in Canada.

Question 67

Service transactions are NOT included in a country's export numbers.

Question 68

A global company recognizes that people in Canada shop less frequently, buy larger sized containers of grocery product and drive to and from the store. In another country, people tend to shop daily and walk to and from the stores. To address the needs of the other country, which of the following is MOST likely?

A) straight extension
B) product adaptation
C) promotion adaptation
D) dual adaptation

Question 69

Walmart is the world's largest private employer and the largest retail marketer.

Question 70

Global trade is NOT as important to Canada and the United States due to the fact that these two economies are still in the infancy stage.

Question 71

Global trade consists of two categories: exporting and importing.

Question 72

Demand for foreign products in Asia is declining, reducing the importance of global trade in those countries.

Question 73

A major benefit of a global marketing strategy includes which of the following?

A) different market segmentation occurs
B) services are excluded
C) implementation costs are low
D) very different marketing mixes are created

Question 74

A North American company has created a North American product ad that includes the use of a handshake. The use of a handshake may be seen as offensive by some countries overseas, where the product is also sold.Which of the following is MOST likely?

A) straight extension
B) product adaptation
C) promotion adaptation
D) dual adaptation

Question 75

Information technology is a major factor in allowing services to be traded internationally.

Question 76

Technology has allowed small companies the opportunity to enter the global marketplace more quickly through online services such as PayPal.

Question 77

A global marketing strategy for luxury products will often use ads with a picture of the luxury item and the name in various countries.This is an example of which the following?

A) straight extension
B) product adaptation
C) promotion adaptation
D) dual adaptation

Question 78

The International Monetary Fund is responsible for defining and classifying which of the following transactions?

A) service
B) goods
C) exchange rate
D) technology

Question 79

Machinery and industrial products represent the highest percentage of Canada's exports.

Question 80

A Canadian cereal company has completed market research that indicates children from the United Kingdom enjoy the taste of the Canadian version of Snacky Cereal. However, they have a difficult time chewing it because the pieces are so large and are therefore eating less of it. Which of the following is MOST likely strategy?

A) straight extension
B) product adaptation
C) promotion adaptation
D) dual adaptation