Deck 2: Global, Ethical, and Sustainable Marketing

Question 1

Which of the following is the first step a firm should take when deciding whether or not to go global?

A) Develop marketing mix strategies for foreign markets.
B) Analyze whether it is in the firm's best interest to focus on the domestic market or to expand to international markets.
C) Identify the most attractive global markets for the firm's products.
D) Select a market-entry strategy that fits the firm's desired level of commitment.
E) Identify potential partners in international markets.

Answer 1

B

Question 2

A country that barters for imported products rather than paying in cash likely does so because its currency is convertible.

Answer 2

False

Question 3

Exporting products overseas is an example of ________.

A) countertrade
B) a market-entry strategy
C) a marketing mix strategy
D) fair trade
E) a convertible trade

Answer 3

B

Question 4

The purpose of a government-imposed ________ is to give domestic competitors an advantage in the marketplace by making foreign competitors' goods more expensive than domestic goods.

A) monopoly
B) quota
C) tariff
D) countertrade
E) embargo

Question 5

________ refers to the total value of all the exports and imports of the world's nations.

A) Countertrade
B) International marketing
C) Gross national product
D) Gross domestic product
E) World trade

Question 6

Which of the following statements about the World Trade Organization (WTO) is true?

A) The WTO is a branch of the U.S. government.
B) An essential function of the WTO is stabilizing international money exchange rates.
C) Only developed nations are granted membership into the WTO.
D) The WTO's main function is to help the least developed countries grow their economies.
E) The WTO is the only international organization that deals with the global rules of trade between nations.

Question 7

The global economic crisis of 2009 had little effect on the volume of world trade that year.

Question 8

When a government adopts a policy of ________, it enforces rules on foreign firms in order to give home companies an advantage.

A) gray marketing
B) countertrade
C) monopolistic competition
D) economic sanctions
E) protectionism

Question 9

The purpose of an import quota is to ________.

A) eliminate competition for a nation's domestic industries
B) increase competition for a nation's domestic industries
C) reduce competition for a nation's domestic industries
D) make foreign competitors' goods less expensive than domestic goods
E) make foreign competitors' goods more expensive than domestic goods

Question 10

Azerbaijan imported wheat from Romania in exchange for crude oil and Vietnam exchanged rice for Philippine fertilizer and coconuts. Both scenarios are examples of which of the following?

A) convertible trade
B) tariffs
C) quotas
D) protectionism
E) countertrade

Question 11

Describe the four steps a firm should take when it is considering going global.

Question 12

Growing concern over the Greenhouse Effect is increasing pressure for development of a single marketplace with consistent environmental standards.

Question 13

Why would almost all Americans be considered participants in the global marketplace?

Question 14

The General Agreement on Tariffs and Trades (GATT) ________.

A) is composed of 10 developed nations who make trade decisions for all other countries
B) was created by the United States shortly after World War II
C) is an example of a regional economic community
D) led to the creation of the WTO
E) sets international import quotas

Question 15

Management at Growing Green, a company that markets organic and environmentally friendly gardening and landscaping supplies and equipment, is evaluating the benefits and disadvantages of indirect exporting, direct exporting, and licensing. In which stage of the international marketing process is Growing Green?

A) deciding whether to go global
B) deciding which global markets are most attractive
C) deciding which market-entry strategy is best
D) deciding on the marketing mix strategies for foreign markets
E) deciding on the global marketing organization

Question 16

Malaysia, Indonesia, Singapore, Thailand, and Cambodia are all members of ________.

A) Andean Community
B) ASEAN
C) MERCOSUR
D) NAFTA
E) APEC

Question 17

Which of the following countries is NOT a member of MERCOSUR?

A) Brazil
B) Paraguay
C) Bolivia
D) Uruguay
E) Venezuela

Question 18

A(n) ________ is an extreme quota that completely prohibits commerce and trade with a specific country.

A) tariff
B) embargo
C) protectionist quota
D) perfect monopoly
E) import

Question 19

A(n) ________ is a group of countries that have agreed to coordinate trade policies and ease restrictions on the flow of products and capital across members' borders.

A) monopoly
B) free trade zone
C) economic community
D) oligopoly
E) economic infrastructure

Question 20

Trading firms that work out elaborate deals in which they trade or barter their products with one another or even supply goods in return for tax breaks from the local government are using ________.

A) protectionism
B) competitive intelligence
C) gray marketing
D) countertrade
E) inflation

Question 21

The euro is the currency used by ________.

A) NAFTA
B) MERCOSUR
C) the EU
D) the WTO
E) GATT

Question 22

NAFTA is a(n) ________.

A) South American economic community
B) common market for eastern and southern Africa
C) economic community that includes Peru, Brazil, and China
D) trade agreement that includes Canada, Mexico, and the United States
E) eastern European economic community that competes with the EU

Question 23

Governments use tariffs to give domestic competitors an advantage in the marketplace by making foreign competitors' goods more expensive.

Question 24

Describe the function of an economic community and explain how its policies can be advantageous to marketers. Give two examples of important economic communities.

Question 25

The goal of the World Bank is to improve economies and support sustainable development in order to reduce poverty and improve lives.

Question 26

The U.S. government proposed a tariff against some Chinese textiles and clothing when the trade deficit with China reached $103 billion. Explain what the United States was trying to achieve through this action.

Question 27

Which of the following is true of the global economy after the Great Recession of 2008-2009?

A) The global economy has not grown since the Great Recession of 2008-2009.
B) The global economy grew steadily but slowly from 2014 to 2016.
C) The economies of least developed countries have grown at the fastest rate of all countries.
D) The global economy has quickly rebounded and has experienced several years of fast-paced growth.
E) The economies of countries with higher incomes have grown at faster rates than the economies of least developed countries.

Question 28

The International Monetary Fund controls fluctuations in exchange rates in order to prevent severe balance of payments problems.

Question 29

The only member countries of the North American Free Trade Agreement (NAFTA) are the United States, Canada, and Mexico.

Question 30

Marketers need to understand the ________ environment of a country from two perspectives: the overall level of development of a country and the current stage of its business cycle.

A) political and legal
B) sociocultural
C) economic
D) technological
E) natural

Question 31

In February 2000, the United States imposed a tax on imported steel in an effort to protect about 5,000 U.S. jobs. Another name for this levied tax is a(n) ________.

A) embargo
B) gray tax
C) tariff
D) import quota
E) boycott

Question 32

Trusted Wholesalers is a company that purchases products produced in Mexico and sells them to companies based in the United States and Canada. Management at Trusted Wholesalers would most likely be interested in becoming experts in the agreements made by ________.

A) the EU
B) NAFTA
C) CAFTA
D) APEC
E) MERCOSUR

Question 33

Costa Rica, the Dominican Republic, El Salvador, and several other Central American countries formed the CAFTA economic community. This is an example of a policy of protectionism.

Question 34

Each industry sets import quotas for its products to determine yearly production volume.

Question 35

U.S. sugar import quotas have existed for more than 50 years and preserve about half of the U.S. sugar market for domestic producers. Why does the United States continue to have these quotas?

A) to reduce competition for its domestic sugar industry
B) to increase the cost of sugar
C) to control the supply and demand for sugar
D) to support a mass market for sugar
E) to improve the promotion of sugar

Question 36

U.S. sugar import quotas have existed for more than 50 years and preserve about half of the U.S. sugar market for domestic producers. These quotas are examples of ________.

A) embargoes
B) nationalization
C) protectionism
D) pirating
E) balance of payments

Question 37

The main pursuit of the World Trade Organization (WTO) is to guarantee basic human rights in all markets.

Question 38

How might a nation's strict import quotas on particular products negatively affect consumers in that country?

Question 39

What is protectionism and why might a government adopt it as a policy? Explain how three examples of protectionism function.

Question 40

Describe the function of the World Trade Organization (WTO) and explain how it originated.

Question 41

Which of the following best explains why marketers are attracted to the BRICS countries?

A) These countries have long-established upper classes that form a strong market for luxury goods.
B) These countries are quickly moving from being least developed to developing countries.
C) These countries have masses of consumers who are not yet wealthy but are quickly moving to economic prosperity.
D) These countries offer large markets with no language or cultural barriers.
E) These countries wield the most power in the G7.

Question 42

A severe recession is a depression, a period in which prices fall but there is little demand because few people have money to spend and many are out of work. This condition is part of ________.

A) the microenvironment
B) the business cycle
C) the technological environment
D) the legal environment
E) social norms

Question 43

Which of the following countries has the highest per capita GDP?

A) China
B) Japan
C) Russia
D) Qatar
E) United States

Question 44

Planet Fitness and Gold's Gym engage in ________ competition when they both try to attract customers to buy their fitness center services.

A) discretionary income
B) product
C) brand
D) monopolistic
E) oligopolistic

Question 45

The ________ is the price of a nation's currency in terms of another currency.

A) gross domestic product
B) standard of living
C) import quota
D) tariff
E) foreign exchange rate

Question 46

Which of the following occurs when prices and the cost of living rise while money loses its purchasing power?

A) prosperity
B) recovery
C) inflation
D) deflation
E) depression

Question 47

When determining a country's ________, economists look at how the country is attempting to reduce poverty, inequality, and unemployment in addition to considering the country's GDP.

A) forex rate
B) competitive environment
C) economic infrastructure
D) level of economic development
E) purchasing power parity

Question 48

In most cases, which of the following is true about a least developed country (LDC)?

A) It has an economy based on agriculture.
B) It is landlocked.
C) It has a viable middle class.
D) It has high literacy levels.
E) It has an advanced economic infrastructure.

Question 49

In a(n) ________ structure, there are a relatively small number of sellers, each holding substantial market share, in a market with many buyers.

A) monopoly
B) oligopoly
C) monopolistic competition
D) perfect competition
E) natural competition

Question 50

The United States, the United Kingdom, Canada, France, Italy, Germany, and Japan are all members of ________.

A) the BRICS countries
B) the G7
C) the EU
D) NAFTA
E) APEC

Question 51

France, Italy, and Germany boast sophisticated marketing systems and are three good examples of ________.

A) preindustrial countries
B) least developed countries (LDCs)
C) developing countries
D) developed countries
E) BRICS countries

Question 52

Through ________ competition, competitors offer different goods and services that attempt to satisfy the same consumers' needs and wants.

A) discretionary income
B) product
C) brand
D) monopolistic
E) oligopolistic

Question 53

The most commonly used measure of a country's economic health is the country's ________.

A) gross domestic product (GDP)
B) gross national product (GNP)
C) foreign exchange rate
D) cost of living
E) purchasing power parity (PPP)

Question 54

Through ________ activities, a firm gathers and analyzes publicly available information about rivals.

A) economic infrastructure
B) competitive intelligence
C) demographic
D) perfect competition
E) business cycle

Question 55

The measurable quality of a country's distribution, financial, and communication systems is referred to as the country's ________.

A) level of economic development
B) standard of living
C) gross domestic product (GDP)
D) economic infrastructure
E) business cycle

Question 56

In a(n) ________ structure, one seller controls a market.

A) monopoly
B) oligopoly
C) monopolistic competition
D) perfect competition
E) natural competition

Question 57

Which of the following is NOT among the largest of the world's developing countries?

A) Brazil
B) Russia
C) India
D) Canada
E) China

Question 58

________ income is the amount of money an individual has left to spend after paying for necessities such as housing, utilities, food, and clothing.

A) Discretionary
B) Gross product
C) Standard of living
D) Inflationary
E) Per capita

Question 59

A country's ________ indicates the average quality and quantity of goods and services consumed within the country.

A) economic infrastructure
B) standard of living
C) gross domestic product (GDP)
D) gross national product (GNP)
E) business cycle

Question 60

Which of the following measures is often a good indicator of a country's economic health because it is adjusted for the population size of each country?

A) per capita GDP (gross domestic product)
B) GNP (gross national product)
C) purchasing power parity (PPP)
D) standard of living
E) economic infrastructure

Question 61

________ are statistics that measure aspects of population, such as size, age, and gender.

A) Demographics
B) Norms
C) Cultural dimensions
D) Standards
E) Mores

Question 62

Which of the following is a form of protectionism?

A) joint ventures
B) bribery
C) extortion
D) collectivism
E) local content rules

Question 63

Expropriation occurs when a government ________.

A) reimburses a foreign company for its assets after taking over the company
B) reimburses a foreign company that has lost facilities due to natural causes
C) refuses to allow its businesses to engage in exporting
D) takes over a foreign operation and provides the seized operation with no reimbursement
E) imports more than it exports

Question 64

The use of drones to deliver packages to consumers' homes would represent a change in the ________.

A) sociocultural environment
B) economic environment
C) legal environment
D) technological environment
E) microenvironment

Question 65

The ________ was established by the Federal Trade Commission in 2003 to allow consumers to limit the number of telemarketing calls they receive.

A) National Do Not Call Registry
B) Child Protection Act
C) Federal Communications Commission
D) Consumer Products Safety Commission Act
E) Robinson-Patman Act

Question 66

The ________ environment refers to the characteristics of a society, the people who live in the society, and the culture that reflects the values and beliefs of the society.

A) political and legal
B) sociocultural
C) economic
D) technological
E) natural

Question 67

The ________, a U.S. regulatory agency, enforces laws and regulations on foods, drugs, cosmetics, and veterinary products.

A) Food and Drug Administration
B) Environmental Protection Agency
C) Federal Communications Commission
D) Federal Trade Commission
E) Consumer Product Safety Commission

Question 68

In a(n) ________ culture, people tend to subordinate their personal goals to those of a stable community.

A) collectivist
B) individualist
C) democratic
D) demographic
E) ethnocentric

Question 69

The ________, a U.S. regulatory agency, regulates telephone, radio, television, and the use of the Internet.

A) Consumer Product Safety Commission
B) Environmental Protection Agency
C) Federal Communications Commission
D) Federal Trade Commission
E) Interstate Commerce Commission

Question 70

The ________ was developed to eliminate monopolies and to guarantee free competition.

A) Sherman Antitrust Act
B) Clayton Act
C) Robinson-Patman Act
D) Wheeler-Lea Act
E) Lanham Trademark Act

Question 71

In a(n) ________ structure, there are many sellers, each offering slightly different products and each having only a small share of the market.

A) monopoly
B) oligopoly
C) monopolistic competition
D) perfect competition
E) natural competition

Question 72

Through the U.S. Generalized System of Preferences (GSP), developing countries may export goods duty-free to the United States if they ________.

A) demonstrate progress toward protecting the natural environment
B) demonstrate progress toward improving the rights of their workers
C) agree to exempt U.S. imports from local content rules
D) belong to the World Trade Organization (WTO)
E) participate in a reciprocal free trade zone

Question 73

The management team at Home Help, a consumer products manufacturer, is considering entering several different foreign markets and is in the process of analyzing each potential market's economic environment. Which of the following would best help the management team understand the typical quality and quantity of goods and services purchased in the country?

A) gross national product (GNP)
B) the economic infrastructure
C) the per capita gross domestic product (GDP)
D) the standard of living
E) gross domestic product (GDP)

Question 74

The ________ environment refers to the local, state, national, and global laws and regulations that affect businesses.

A) political and legal
B) sociocultural
C) economic
D) technological
E) natural

Question 75

Nationalization occurs when a government ________.

A) reimburses a foreign company for its assets after taking over the company
B) reimburses a foreign company that has lost facilities due to natural causes
C) refuses to allow its businesses to engage in exporting
D) takes over a foreign operation and provides the seized operation with no reimbursement
E) imports more than it exports

Question 76

Specific rules that dictate what is acceptable or unacceptable within a society are referred to as ________.

A) demographics
B) cultural values
C) cultural dimensions
D) social norms
E) ethnocentric standards

Question 77

Consumer ________ is the belief that the products made in one's own country are superior to those from other countries.

A) nationalization
B) ethnocentrism
C) domestication
D) expropriation
E) democratization

Question 78

In a(n) ________ culture, people tend to attach more importance to personal goals than to the needs of the larger community.

A) collectivist
B) individualist
C) democratic
D) demographic
E) sociocultural

Question 79

Every society has a set of deeply held beliefs about right and wrong ways to live, which are referred to as ________.

A) demographics
B) social norms
C) cultural dimensions
D) cultural values
E) customs

Question 80

In a(n) ________ structure, there are many small sellers, each offering similar products, and each unable to have a significant impact on the quality, price, or supply of a product.

A) monopoly
B) oligopoly
C) monopolistic competition
D) perfect competition
E) natural competition