Deck 20: Developing a Global Vision

Question 1

Which of the following best describes global marketing standardization?

A)is becoming less popular with the large multinationals
B)encourages product,packaging,and advertising variations for each nation or local market
C)raises production costs
D)presumes markets throughout the world are becoming more alike

Answer 1

D
With a global marketing standardization approach,a firm produces standardized products to be sold the same way worldwide.This approach assumes all customers have the same needs and wants.

Question 2

Which of the following describes a common criticism of multinational companies?

A)the transference of the wrong kind of technology to a developing nation
B)the use of western workers in the third world countries
C)they pay the minimum wage in whatever country they go to
D)dumping of first world excess products on to third world countries

Answer 2

A
Typically,the technology needed to run operations in developing nations is capital intensive and thus does not substantially increase employment.

Question 3

Basketball is played nearly everywhere in the world and is an easily understood sport.The National Basketball Association (NBA)finals reached more than 600 million televisions in 195 countries.From this information,what should you be able to infer about the NBA?

A)It is developing international selling schemes.
B)It is implementing standard international marketing.
C)It is practising global marketing.
D)It is supplementing its foreign vision.

Answer 3

C

Question 4

Which of the following statements best describes multinational firms?

A)Multinationals typically do not change their methods of reaching their global markets if they are successful with their initial strategy.
B)Multinationals are defined as companies heavily engaged in exporting and importing.
C)All multinationals must enter the fourth stage of globalization before they are fully internationalized.
D)Multinationals often develop their global businesses in stages.

Question 5

U.S.wine producers export only about 14 percent of their total annual production of wine.This statement indicates that the U.S.wine industry is which of the following?

A)selling more wine abroad than it does in the United States.
B)an industry in the first stages of globalization.
C)willing to take significant risks in order to sell more wine internationally.
D)producing more wine than it can sell.

Question 6

Which of the following statements best describes global marketing?

A)Marketing throughout the world has become optional for businesses.
B)Often a Canadian firm's toughest foreign competition comes from domestic companies.
C)Marketing managers must develop a global vision not only to recognize and react to international marketing opportunities but also to remain competitive at home.
D)Global marketing cannot offset weak domestic performance.

Question 7

What is the term for a company that is heavily engaged in global trade and moves its resources,goods,services,and skills across national boundaries?

A)international facilitator
B)global trader
C)multinational corporation
D)exporter

Question 8

A firm that produces standardized products to be sold the same way all over the world uses which of the following?

A)a traditional marketing strategy
B)a global marketing standardization approach
C)a product extension approach
D)a culturally based marketing strategy

Question 9

Why do many people fear world trade?

A)It will inevitably lead to inflation.
B)It will cause living standards to increase at a slower rate.
C)It causes some people to lose their jobs as production shifts abroad.
D)It has lowered global wages.

Question 10

Cardiac Science,a Canadian manufacturer of defibrillators,heart monitoring devices,and other medical related devices,sells 85 percent of its products outside Canada.It sells basically the same product to a hospital in London,Tokyo,Pretoria,or Sydney.It uses the same promotional tactics in all of its markets.Cardiac Science does which of the following?

A)is not concerned about media and messages used for international promotional efforts
B)uses global marketing standardization
C)assumes cultural uniformity and lifestyle differences occur across cultural settings
D)desires technological receptivity from country to country

Question 11

A business thinking of expanding into global markets needs to examine all of the following external environments EXCEPT which of the following?

A)culture
B)political structure and actions
C)its marketing mix
D)demographic makeup

Question 12

Which of the following statements describes one of the benefits of increased globalization?

A)Millions of Canadians have filled jobs created by imports and production shifts abroad.
B)Because of world trade,Canadians have seen price reductions in certain products.
C)Because jobs are threatened by exports,employers are issuing pay-cut demands to their workers.
D)Export jobs typically pay less money than other jobs.

Question 13

When European demand for a certain solvent declined,Dow Chemical instructed its German plant to switch to manufacturing a chemical that had been imported from Louisiana and Texas.How would Dow Chemical best be described?

A)as a global enterprise
B)as a global trader
C)as a cultural marketer
D)as a multinational corporation

Question 14

A Canadian executive had no idea the Japanese go through a very elaborate ritual when exchanging business cards.When he arrived at a meeting in Tokyo,he sat down and tossed some of his business cards across the table at a group of stunned Japanese businesspeople.Due to the Canadian executive's rudeness,the multimillion-dollar deal failed.The executive overlooked the importance of which environmental factor?

A)culture
B)demographics
C)politics
D)economic development

Question 15

A soft drink manufacturer that was thinking of investing in a bottling plant in the Czech Republic should know the nation is proud of the fact it is among the world's biggest beer drinkers.Czechs consume an average of one-half litre of beer a day for every man,woman,and child in the country.Which environment of this country could very easily prevent the soft-drink bottling company from succeeding?

A)demographic
B)economic
C)cultural
D)political

Question 16

Otis Elevators has entered into a strategic alliance with a company in France from which it gets its elevator door systems.It has a similar agreement with a manufacturer in Japan that provides it with special motor drives.A manufacturer in Spain has worked closely with Otis to create small geared parts necessary for the manufacture of elevators.The component parts are assembled at its plant in the United States.Otis elevators can be found in buildings all over the world.What is Otis Elevators an example of?

A)a cultural marketer
B)a global trader
C)a multinational corporation
D)a global enterprise

Question 17

The same Timex,Seiko,and Citizen wristwatches you buy in North America can be purchased around the world.Why is there is no difference in a watch purchased in Russia,in Mexico,or in Singapore?

A)The manufacturers of these watches use an ethnocentric strategy.
B)The manufacturers of these watches use a global marketing standardization approach.
C)The manufacturers of these watches use a synergistic approach to globalization.
D)The manufacturers of these watches use a cultural marketing strategy.

Question 18

What are individuals and organizations utilizing a global vision to effectively market goods and services across national boundaries engaged in?

A)practising international selling schemes
B)implementing standard international marketing
C)implementing global marketing standardization
D)practising global marketing

Question 19

Central to any society is a common set of values shared by its citizens that determine what is socially acceptable.How do marketers refer to these values collectively?

A)a country's ethical system
B)a country's culture
C)a country's ethnocentricity
D)a country's socialization

Question 20

A company that is capital intensive does which of the following?

A)has an altered fiscal strategy for overseas operations
B)spends more on equipment than on labour
C)makes better use of benchmarking than other types of business
D)creates employment monopolies

Question 21

Muslim countries are receptive to most Disney products,but they have asked Disney not to include Piglet when it sells its Winnie the Pooh characters because,as a part of their religious beliefs,Muslims contend that pork in any form is unclean.Which type of factor is directly affecting Disney's global operation?

A)political structure
B)cultural
C)technological
D)competitive

Question 22

What are negotiations (such as GATT or NAFTA)between countries that are made to stimulate global exchange and remove barriers?

A)trade agreements
B)joint venture agreements
C)CRM agreements
D)exchange agreements

Question 23

What is the term for an exclusion of all products from certain countries or companies by a government or group?

A)expropriation
B)quota
C)tariff
D)boycott

Question 24

The fact that Nigeria's inflation rate has dropped by almost 2.5 percent since the beginning of this decade would be what type of factor for a company that wanted to do business in that country?

A)legal
B)economic
C)cultural
D)technological

Question 25

Since 1953,the United States has limited the amount of raw peanuts that can be imported to 1.7 million pounds a year.This is only about one-tenth of 1 percent of all domestic edible peanut consumption in the United States.What is this limitation an example of?

A)a natural resource barrier
B)a quota
C)a tariff
D)an exchange control

Question 26

What is a trade agreement that includes Argentina,Bolivia,Brazil,Chile,Columbia,Ecuador,Paraguay,Peru,and Uruguay and has eliminated the tariffs among these trading partners?

A)NAFTA
B)Maastricht
C)Mercosur
D)GATT

Question 27

Argentina has restrictions against "big-box" retail stores like The Home Depot.The only way these retail operations can open a store in Argentina is if they do not sell either clothing or food.Also,at least 50 percent of all merchandise sold in the stores must be manufactured in Argentina.Which type of environment is influencing globalization in this example?

A)economic
B)technological
C)legal
D)cultural

Question 28

Which of the following is a law that compels a company earning foreign currency from its exports to sell it to a central bank rather than sending the money out of the country?

A)a tariff
B)a quota
C)a fiscal prerequisite
D)an exchange control

Question 29

In China,August 15 is "the Chinese Saint Valentine's Day" in memory of two ancient lovers who were separated by a goddess and allowed to meet only once a year on that date.Flower and candy sales typically increase that day as they do on February 14 in North America.This would be an important part of which international environment for a flower wholesaler or a confectionery company?

A)cultural
B)legal
C)economic
D)technological

Question 30

Jim Beam Distillery launched a Pan-European campaign across 28 markets from Russia to Scandinavia and into southern Europe to reposition its bourbon.It focused on finding men in bars and featuring them in local print ad campaigns as "real friends" of Jim Beam.Such an ambitious ad campaign could be threatened by which of the following changes in the legal environment?

A)negative changes in how Europeans perceive alcohol
B)an inflationary period,which makes drinking expensive bourbon a luxury item
C)the enactment of a quota limiting how much Jim Beam can be imported
D)a dramatic increase in the number of alcoholics in Europe

Question 31

When Britain refused to buy bananas from South America,the U.S.government,as a means of helping its trade partners,legislated taxes on some imported British-produced goods.These taxes included a nearly 100 percent charge on Scottish wool products.What is another term for this charge?

A)a quota
B)an export duty
C)a licence
D)a tariff

Question 32

What is a limit on the amount of a specific product that can enter a country?

A)a quota
B)a tariff
C)a boycott
D)a transfer limit

Question 33

Which of the following statements best describes the political environment?

A)A recession is part of the political environment.
B)A country is either socialistic or capitalistic,but never both.
C)The countries with the fewest across-the-board regulations and political structures foster the strongest economies.
D)The European Union is purely an economic arrangement and has no political impact on marketing.

Question 34

The Rice Millers' Association claims that if the Japanese government would remove the tax on imported North American rice,Japanese consumers would save $6 billion annually.What is this tax an example of?

A)an embargo
B)a tariff
C)an import quota
D)a transfer fee

Question 35

American catfish farmers mounted an aggressive offensive against imports of catfish from Vietnam,which have increased by over $40 million in four years.As a result of the offensive,U.S.consumers must pay about 50 percent more for catfish imported from Vietnam.What are mostly likely used to make sure that Vietnamese catfish was selling at a price comparable to U.S.-bred catfish?

A)tariffs
B)boycotts
C)export duties
D)countertrades

Question 36

Which of the following are trade alliances in which several countries agree to work together to form a common trade area that enhances trade opportunities among those countries?

A)boycotts
B)regional unifications
C)market groupings
D)free trade nations

Question 37

In 1764,the British Sugar and Currency acts created such economic difficulty in the American colonies that soon-to-be Americans refused to buy British goods in protest.What did this refusal mark one of the first examples of?

A)the use of a boycott
B)the use of a quota
C)the use of a tariff
D)the use of an exchange control

Question 38

Marlin manufactures washing machines.It is designing advertisements and planning the promotional mix for marketing in Eastern Europe,South Africa,India,and Brazil.The advertising manager should expect all of the following to cause problems EXCEPT which of the following?

A)media availability
B)government regulations
C)exchange control
D)cultural differences

Question 39

Which of the following is an important cultural factor that should be considered by global marketers?

A)competitive synergy
B)language
C)natural resources
D)technology sensitivity

Question 40

What is a tax levied on the goods entering a country?

A)a licence
B)a quota
C)a transfer limit
D)a tariff

Question 41

What is the goal of the Central America Free Trade Agreement (CAFTA)?

A)to create free-trade agreements between the United States and other industrialized nations
B)to eliminate all protectionism
C)to raise prosperity levels in all industrializing nations
D)to establish a free trade agreement between the United States and certain Latin American countries

Question 42

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 and factors such as distribution of people within a country and household incomes,companies must not overlook which of the following factor?

A)demographic
B)political
C)cultural
D)educational

Question 43

A cooperative of egg producers believes a profitable market for eggs exists overseas where people are not as concerned about cholesterol.What will the cooperative most likely use if it decides to export?

A)a commission merchant
B)a drop shipper
C)an export broker
D)an export agent

Question 44

The latest round of World Trade Organization (WTO)talks has been contentious.Up to two-thirds of the population of Africa,Asia,and Latin America works in agriculture.A major goal of which of the following is to bolster these developing economies?

A)Mercosur covenant
B)CAFTA Alliance
C)Doha Round
D)Uruguay Round

Question 45

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)natural resources

Question 46

What is the term for a global intermediary that operates primarily in agriculture and raw materials by bringing the buyer and seller together?

A)buyer for export
B)export agent
C)license agent
D)export broker

Question 47

What was the most ambitious global trade agreement ever negotiated and has reduced tariffs by one-third worldwide?

A)Uruguay Round
B)Mercosur
C)GATT
D)NAFTA

Question 48

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

A)exporting
B)licensing
C)contract manufacturing
D)joint ventures

Question 49

An English manufacturer of cricket equipment sells directly to Universal Sports,which markets the products in Canada.What is Universal Sports an example of?

A)a franchisee
B)a contract broker
C)an export agent
D)a contract manufacturer

Question 50

An English manufacturer of cricket equipment sells directly to Universal Sports,which markets the products in Canada.What is the English manufacturer using?

A)a strategic alliance
B)licensing
C)franchising agreements
D)exporting

Question 51

What is the role of a domestic company that sells to an export merchant (also called a buyer for export)?

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

Question 52

Vast differences in natural resources create all of the following EXCEPT which of these?

A)potential for military intervention
B)shifts in wealth between nations
C)inflation and recession
D)export opportunities for countries with no natural resources

Question 53

A cooperative of egg producers believes a profitable market for eggs exists overseas where people are not as concerned about cholesterol.What would be the least complicated and least risky method for the farmers' cooperative to use to reach a global marketplace?

A)direct investment
B)joint venture
C)contract manufacturing
D)exporting

Question 54

Petroleum shortages have resulted in all of the following EXCEPT which of these?

A)the creation of huge amounts of wealth for oil-producing countries such as Norway and Saudi Arabia
B)the inability of oil-producing nations to service foreign debts when prices go up
C)the capacity for some countries such as Mexico and Venezuela to borrow heavily against oil reserves to develop more rapidly
D)inflation in oil-dependent nations and transfer of wealth to oil-producing nations

Question 55

The North American Free Trade Agreement (NAFTA)did NOT do which of the following?

A)create the world's largest free-trade zone including Canada,the United States,and Mexico
B)substantially reduce economic growth in Mexico
C)allow U.S.and Canadian financial-services companies to own subsidiaries in Mexico
D)remove many tariffs and duties so that Mexico,Canada,and the United States can trade more freely

Question 56

To replace GATT,The Uruguay Round of trade negotiations created which of the following?

A)World Trade Organization
B)European Union
C)NAFTA
D)South American Free Trade Agreement

Question 57

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 which of the following?

A)quota making
B)exporting
C)tariff trading
D)dumping

Question 58

Which of the following statements best describes the European Union (EU)?

A)The EU creates a single Eurozone for generic Europroducts.
B)The EU removes all internal trade barriers and standardizes regulations in European countries for easier trade.
C)The EU can be detrimental to business as not all Europeans shop alike.
D)The EU is dominated by 5 major countries and many much smaller countries.

Question 59

A multinational company that makes a labour-intensive product realizes that factors such as median age,gender,and literacy rates will determine the success of its global expansion.What is the term that identifies the makeup of countries?

A)demographics
B)lifestyle
C)ethnicity
D)culture

Question 60

Which of the following can be used to explain how Ford Motor Company benefited from investing $60 million in a Mexico City manufacturing plant to produce small cars?

A)Mercosur
B)the European Union
C)NAFTA
D)the Uruguay Round

Question 61

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

A)export agents
B)export brokers
C)import brokers
D)buyers for export

Question 62

What is the term for an intermediary in the global market who assumes all risks and sells globally for its own account,and is treated by the domestic manufacturer like a domestic customer?

A)buyer for export
B)export agent
C)joint venturer
D)contract manufacturer

Question 63

What is the 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

Question 64

Caterpillar,Inc.is the world's largest manufacturer of earth-moving and construction equipment.Kirovsky is a large Russian manufacturer of the same type of products.When the two companies created NEVAMASH,a new company,what were they entering? .

A)an import/export partnership
B)a countertrade
C)a disintermediation agreement
D)a joint venture

Question 65

Staropramen,the second largest brewery in the Czech Republic,began brewing beer in 1842.It has agreed to let a Polish brewery use its brand and manufacturing techniques in return for a fee.What is Staropramen using to expand its global marketing?

A)contract manufacturing
B)exporting
C)a joint venture
D)licensing

Question 66

How can a Canadian licensor try to prevent a licensee from voiding its contract and using what it has learned to create a competitor?

A)by using lawyers from both countries to write the licensing agreement
B)by insisting that all licensees have a published code of ethics
C)by having the licensee pay a fee for the use of the manufacturing process,trademark,patent,or other proprietary knowledge
D)by locally registering patents and trademarks to the Canadian firm-not the licensee

Question 67

The manufacturer of Marlboro cigarettes has given Japan Tobacco the legal right to use its trademarks and patents to manufacture Marlboro cigarettes in Japan.For this right,Japan Tobacco pays a fee.To enter an international market,what did the manufacturer of Marlboro cigarettes use?.

A)licensing
B)exporting
C)contract manufacturing
D)direct investment

Question 68

DigiSystems,Inc.manufactures personal gauges for measuring contact with potentially hazardous materials.Its management wants to expand into international markets while also limiting the risks involved.Additionally,DigiSystems has a limited capital base for new or expanded facilities.Which of the following options for entering international markets should DigiSystems use?

A)direct investment
B)agent manufacturing
C)joint venture
D)licensing

Question 69

Disney sells the rights for an investment company to run a Disneyland theme park in Tokyo.The investment company gains most of the profits from the enterprise while paying Disney a percentage in royalties.What is this an example of?

A)a joint venture
B)exporting
C)direct investment
D)licensing

Question 70

Delta Galil Industries Ltd is a clothing manufacturer based in Israel.It is responsible for making clothing sold under the Playtex brand,Donna Karan/DKNY brand,Hugo Boss brand,and Calvin Klein brand.What occurs when one company manufactures clothing that is sold using another company's brand?

A)countertrading
B)joint venturing
C)direct investing
D)contract manufacturing

Question 71

Alcatel-Lucent and Huawei Technologies,Ltd.(headquartered in China)announced they will establish an alliance for developing ultra broadband access solutions for markets around the world.The new company will combine Huawei's market-leading broadband access solutions with Alcatel-Lucent a voice and broadband networking technologies to create a new product designed to be a leader in the industry in value and performance.What is another name for this alliance?

A)contract manufacturing
B)a trade bypass
C)licensing
D)a joint venture

Question 72

With which of the following does a domestic firm assume an equity position (partial ownership)in a foreign firm to manufacture and/or market the domestic company's goods?

A)direct investment
B)a joint venture
C)a buying-for-export agreement
D)a contractual agreement

Question 73

What is franchising a form of?

A)contract marketing
B)international exporting
C)licensing
D)agent manufacturing

Question 74

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.What did Krispy Kreme use?

A)contract manufacturing
B)direct investment
C)importing
D)licensing

Question 75

Ericsson is a Swedish telecommunications firm.GCCT is a French electronics switch manufacturer.With the use of Ericsson's money and technology and GCCT's knowledge of the French market,the two companies created a new entity and beat out Northern Telecom for a $100 million contract with the French government.What is the relationship between the two companies an example of?

A)contract manufacturing
B)exporting
C)direct investment
D)a joint venture

Question 76

Patch Products is an Australian company that has given permission to several Latin American companies to manufacture and market its patented Spanish/English children's frame tray puzzles.Because Patch uses licensing as its global marketing strategy,it did which of the following?

A)must only pay a minimal royalty to the licensed companies
B)cannot control how the puzzles are manufactured
C)has involved itself in the global marketing strategy that gives it the greatest amount of control
D)chose a method of global marketing that created minimal risk

Question 77

FedEx entered into an alliance with Chronopost Internationale,a subsidiary of the French post office.Under this alliance,FedEx will transport French international shipments in its aircraft,and the French postal service will deliver FedEx packages across Europe.What is this an example of?

A)contract manufacturing
B)a trade bypass
C)licensing
D)a joint venture

Question 78

After the fall of communism in the Czech Republic,the government privatized the brewing industry and created 71 new small breweries.In spite of the fact that Czechs consume more beer per person than the populations of most other nations of the world,the country still had overcapacity.The breweries were small and financially struggling.
Refer to Beer.What was the most logical method for the breweries to use in selling their beer in other nations?

A)contract manufacturing
B)licensing
C)franchising agreements
D)exporting

Question 79

After the fall of communism in the Czech Republic,the government privatized the brewing industry and created 71 new small breweries.In spite of the fact that Czechs consume more beer per person than the populations of most other nations of the world,the country still had overcapacity.The breweries were small and financially struggling.
Refer to Beer.Who could the breweries hire within the Czech Republic to serve as intermediaries and export Czech beer to foreign markets?

A)export merchants
B)import agents
C)export agents
D)commission agents

Question 80

Mitsubishi Heavy Industries and Kawasaki Heavy Industries produce McDonnell Douglas's F-15 fighter planes in Japan.The two Japanese companies pay McDonnell Douglas royalties for use of its manufacturing processes and patents.What is this an example of?

A)contract manufacturing
B)strategic investment
C)joint venture
D)licensing