Deck 17: Global Marketing

Question 1

Which of the following is NOT a component of a country market assessment?

A)Political
B)Economic
C)Sociocultural analysis
D)Technology
E)Location

Answer 1

E

Question 2

Local retailers refusing to buy goods from a foreign textile firm in response to the firm's violation of labour laws is an example of a(n):

A)exchange control.
B)boycott.
C)tariff.
D)duty.
E)countertrade.

Answer 2

B

Question 3

The policies of a country aimed at restricting trade and global marketing are called:

A)trade liberalization policies.
B)free trade policies.
C)protectionist policies.
D)pricing policies.
E)fair trade policies.

Answer 3

C

Question 4

The penalties or restrictions imposed by one country over another country for importing and exporting of goods, services, and investments are called:

A)trade liberalization policies.
B)trade sanctions.
C)free trade policies.
D)pricing policies.
E)fair trade policies.

Question 5

The tax levied by a government on imported goods to make them more expensive and less competitive with domestic products is known as a(n):

A)quota.
B)tariff.
C)embargo.
D)trade agreement.
E)boycott.

Question 6

The employees of a firm refusing to continue employment with a foreign firm or buy products from the firm on account of conflicts between the union and the employer is an example of a(n):

A)tariff.
B)embargo.
C)boycott.
D)strategic alliance.
E)quota.

Question 7

A tax levied by the government on a good imported into a country is called a(n):

A)quota.
B)trade agreement.
C)embargo.
D)exchange rate.
E)tariff.

Question 8

Canada restricts its allies from trading with Libya.This type of restriction imposed by the government is known as a(n):

A)tariff.
B)quota.
C)duty.
D)embargo.
E)exchange control.

Question 9

In the context of country market assessment, which of the following factors include quota and tariff?

A)Geographic
B)Sociocultural
C)Economic
D)Political
E)Technology and infrastructure

Question 10

Which of the following is a component of the human development index (HDI)?

A)Environmental sustainability
B)Gender equality
C)Life expectancy at birth
D)Universal adult suffrage
E)Religious freedom

Question 11

The Republic of Rhodia recently tested a deadly nuclear missile despite international opposition.Consequently, some of the nations in business alliance with Rhodia imposed a ban on all goods imported from Rhodia.Which of the following exemplifies the above scenario?

A)Exchange control
B)Tariff
C)Quota
D)Trade sanction
E)Dumping

Question 12

Which of the following can benefit domestically made products by reducing the availability of imported merchandise?

A)Dumping
B)Franchising
C)Quotas
D)Glocalization
E)Direct investment

Question 13

Which of the following refers to the increased flow of goods, services, people, technology, capital, information, and ideas around the world?

A)Globalization
B)Power distance
C)Strategic alliance
D)Trading bloc
E)Cultural imperialism

Question 14

Canada imposes 247% tariffs on dairy imports.The main reason for that tariff is:

A)To increase revenue government revenue
B)To ban import of dairy products from certain countries
C)To increase health and safety of dairy products in Canada
D)To make imported dairy products less competitive compared to the domestic ones
E)To boycott dairy producers in other countries

Question 15

Which of the following, when levied on imported goods, artificially raises their price, thereby lowering their demand in the local markets?

A)Tariffs
B)Boycotts
C)Quotas
D)Embargo
E)Exchange control

Question 16

Which of the following designates the maximum quantity of a product that may be brought into a country during a specified time period?

A)Tariff
B)Embargo
C)Duty
D)Exchange rate
E)Quota

Question 17

A form of trade sanction that prohibits trading with a certain country or trading in specific goods by the signatory countries is called a(n):

A)tariff.
B)quota.
C)embargo.
D)trade agreement.
E)duty.

Question 18

Which of the following refers to the practice of selling a good in a foreign market at a price that is lower than its domestic price or below its cost?

A)Quota
B)Exchange control
C)Dumping
D)Purchasing power parity
E)Glocalization

Question 19

The policies of a country aimed at encouraging global trade and marketing are referred to as:

A)protectionist policies.
B)trade sanctions.
C)trade liberalization policies.
D)tariffs.
E)import quotas.

Question 20

Which of the following is a form of trade sanction?

A)Strategic alliance
B)Contract manufacturing
C)Dumping
D)Segmentation
E)Embargo

Question 21

Which of the following represents the trade agreement between Canada, Mexico, and the United States?

A)The EU
B)The NAFTA
C)The CAFTA
D)The ASEAN
E)The FTAA

Question 22

The trade agreement between Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, Nicaragua, and the United States is called the:

A)NAFTA.
B)FTAA.
C)EU.
D)CAFTA.
E)ASEAN.

Question 23

Which of the following results when a country exports more goods than it imports?

A)Trade deficit
B)Trade sanctions
C)Glocalization
D)Trade surplus
E)Embargo

Question 24

Which of the following countries is a member of the European Union?

A)Denmark
B)Liechtenstein
C)Switzerland
D)Norway
E)Armenia

Question 25

Costa Rica and the Dominican Republic are members of:

A)NAFTA.
B)CAFTA.
C)FTAA.
D)ASEAN.
E)Mercosur.

Question 26

Which of the following refers to the belief that one's own social behaviours and beliefs are superior to that of other nations?

A)Uncertainty avoidance
B)Globalization
C)Glocalization
D)Cultural imperialism
E)Power distance

Question 27

Magnolia Inc., a high-end apparel company, is operational in six countries.In its effort to increase sales volume, Magnolia decides to tailor advertising to the specific regional market.Which of the following refers to the practice adopted by Magnolia?

A)Purchasing power parity
B)Dumping
C)Individualism
D)Contract manufacturing
E)Glocalization

Question 28

Canada is a member of:

A)the European Union.
B)the North American Free Trade Agreement.
C)the Central America Free Trade Agreement.
D)the Association of Southeast Asian Nations.
E)Mercosur.

Question 29

Argentina, Brazil, Paraguay, Uruguay, and Venezuela are members of which trading bloc?

A)The NAFTA
B)The CAFTA
C)The EU
D)The ASEAN
E)Mercosur

Question 30

A country that accepts an extended period for the success of a new product introduction is likely to score high on:

A)glocalization.
B)power distance.
C)uncertainty avoidance.
D)long-term orientation.
E)individualism.

Question 31

Which of the following is an intergovernmental agreement designed to manage and promote trade activities for specific regions?

A)Management contracting
B)Exchange control
C)Embargo
D)Trade agreement
E)Contract manufacturing

Question 32

Which of the following is a measure of how much one currency is worth in relation to another?

A)HDI
B)Exchange rate
C)Tariff
D)Exchange control
E)Quota

Question 33

Which of the following occurs when a country imports more goods than it exports?

A)Glocalization
B)Trade deficit
C)Embargo
D)Trade surplus
E)Trade sanctions

Question 34

When a foreign firm contracts with a local firm in the host market to produce a product, it is referred to as:

A)contract manufacturing.
B)management contracting.
C)direct investment.
D)strategic alliance.
E)dumping.

Question 35

The group of members who have signed a major agreement like the European Union can be called a(n):

A)trading bloc.
B)labour council.
C)embargo.
D)trade union.
E)labour union.

Question 36

Pizza Hut, Starbucks, and Domino's Pizza are examples of which of the following entry strategies?

A)Quota
B)Strategic alliance
C)Franchising
D)Direct investment
E)Dumping

Question 37

An international nonprofit organization conducted a primary study on the profitability of local businesses in a less-developed country.The study concluded that the presence of multinational corporations based in advanced nations have reduced the profitability of the local traders by reducing the demand for local products.Which of the following best exemplifies the view mentioned in the above scenario?

A)Uncertainty avoidance
B)Power distance
C)Cultural imperialism
D)Glocalization
E)Purchasing power parity

Question 38

The practice of firms offering standardized products globally and changing promotional campaigns geared to regional markets is referred to as:

A)purchasing power parity.
B)glocalization.
C)dumping.
D)individualism.
E)contract manufacturing.

Question 39

Which of the following trade agreements represents the highest level of integration across individual nations?

A)The NAFTA
B)The CAFTA
C)The EU
D)The GATT
E)The ASEAN

Question 40

Which of the following is made up of countries that have signed a particular trade agreement?

A)Trade sanction
B)Embargo
C)Trading bloc
D)Trade union
E)Joint venture

Question 41

Which of the following is defined as the market value of goods and services produced by a country in a year?

A)Human development index
B)National environmental accounting
C)Purchasing power parity
D)Gross national happiness
E)Gross domestic product

Question 42

According to Geert Hofstede, the dimension of power distance refers to:

A)the extent to which society relies on formalized procedures to address situations that arise in daily life.
B)the perceived obligation to and dependence on groups.
C)short-term versus long-term orientation.
D)the extent to which dominant values are male oriented.
E)the willingness to accept social inequality as natural.

Question 43

Which of the following is an example of direct exporting?

A)A paint manufacturing company allows a local manufacturer to produce its paint products by licensing its technology.
B)A lab equipment manufacturer in Korea sells its products through a local retail chain in India.
C)A company exporting gems in India sells its gems through a jewellery retailer in Australia.
D)A kitchen boutique sells its kitchen appliances in the host country by using its own retail outlets.
E)A British company sells its machinery to a Canadian manufacturer that is licensed to produce and market goods in that country.

Question 44

A clothing company wants to explore new markets to increase sales of its clothing line.It has identified Kenya as a potential new market but wants to initially look at a low-risk, low-return option to assess the market.Which of the following entry strategies is the most suitable for the firm?

A)Strategic alliance
B)Franchising
C)Joint venture
D)Direct investment
E)Exporting

Question 45

The dimension of culture that refers to the extent to which the dominant values in a society are male oriented is called:

A)power distance.
B)individualism.
C)time orientation.
D)uncertainty avoidance.
E)masculinity.

Question 46

Which of the following is a composite measure of life expectancy at birth, educational attainment, and whether the average incomes are sufficient to meet basic needs of life in a country?

A)GDP
B)GNP
C)HDI
D)GNH
E)PPP

Question 47

Because it provides an opportunity to export to more markets, firms prefer to manufacture in countries that have:

A)a trade surplus.
B)trade sanctions.
C)a trade deficit.
D)import quotas.
E)export duties.

Question 48

What does The Economist's Big Mac Index employ to assess the relative economic buying power among nations?

A)GDP
B)GNP
C)HDI
D)GNH
E)PPP

Question 49

Joe really wants to buy a luxury car for himself and he can afford it.He knows that his family's perception of luxury cars is "waste of money".He ends up buying a Honda CRV, which is considered as a good utilitarian car.Which dimension of Hofstede's framework is likely to influence Joe's decision?

A)Individualism
B)Power distance
C)Uncertainty avoidance
D)Masculinity
E)Short/Long term orientation

Question 50

According to Geert Hofstede, the dimension of individualism refers to:

A)the extent to which society relies on formalized procedures to address situations that arise in daily life.
B)the perceived obligation to and dependence on groups.
C)short-term versus long-term orientation.
D)the extent to which dominant values are male oriented.
E)willingness to accept social inequality as natural.

Question 51

Which of the following factors of Geert Hofstede's cultural dimensions concept have to be considered by firms when they conduct a sociocultural analysis of a country's market?

A)Exchange control
B)Distribution channels
C)Population growth
D)Power distance
E)Transportation

Question 52

Which of the following market entry strategies requires the least financial risk but also allows for only a limited return to the firm?

A)Strategic alliance
B)Direct investment
C)Joint venture
D)Exporting
E)Franchising

Question 53

Which of the following is the extent to which the society relies on orderliness, consistency, structure, and formalized procedures to address situations that arise in daily life?

A)Power distance
B)Individualism
C)Time orientation
D)Uncertainty avoidance
E)Masculinity

Question 54

India is an attractive market for many companies, for the following reasons EXCEPT:

A)It has a very large population of 1.25 billion
B)It is one of the world's fastest growing markets
C)It has a modern supply chain management
D)It has a very young population
E)Its younger population are fluent in English

Question 55

Which of the following is NOT a key element of a country's infrastructure?

A)Distribution
B)Communication
C)Transportation
D)Commerce
E)Real Income

Question 56

Tim Horton's opened its first international store in the United States.Which entry strategy Tim Horton's is likely used?

A)Exporting
B)Franchising
C)Joint Venture
D)Direct investment
E)Strategic alliance

Question 57

Which of the following is best defined as the basic facilities, services, and installations needed for a community or society to function?

A)Glocalization
B)Cultural imperialism
C)Infrastructure
D)Power distance
E)Uncertainty avoidance

Question 58

Which of the following is an example of indirect exporting?

A)An Australian company allowing a local firm in China to use its technical know-how in producing a product
B)An American fast-food chain allowing a local chain of restaurants to operate its business in India
C)A South Korean electronics firm selling its televisions through a local electronics retailer in the host country
D)A British company selling its machinery to a Canadian manufacturer that is licensed to produce and market goods in that country
E)A Korean chemical company allowing a Japanese company to reproduce the chemical product in the local Japanese market

Question 59

The theory that states that if the exchange rates of two countries are in equilibrium, a product purchased in one will cost the same in the other, expressed in the same currency is referred to as:

A)gross domestic product.
B)human development index.
C)purchasing power parity.
D)gross national product.
E)potential output.

Question 60

Which of the following approaches involves producing goods in one country and selling them in another?

A)Franchising
B)Exporting
C)Strategic alliance
D)Direct investment
E)Embargo

Question 61

An American pharmaceutical enters into an agreement with an Indian biotechnology company.The medicines are to be sold in the Indian market.The agreement explicitly states that only the American firm is entitled to maintain the technology and provide know-how regarding technology use and repair.This is an example of:

A)management contracting.
B)strategic alliance.
C)contract manufacturing.
D)exporting.
E)direct investment.

Question 62

A popular fast-food chain decides to enter a foreign market by allowing a local food chain to produce and market its products in return for a fee.This type of entry strategy is known as:

A)franchising.
B)exporting.
C)strategic alliance.
D)joint venture.
E)direct investment.

Question 63

Determining the selling price in the global market?place is an extremely difficult task.Which of the following best explains the rationale for the above statement?

A)Rules governing the competitive marketplace and factors such as quotas and antidumping laws play a significant role in many countries.
B)The increasing literacy levels have significantly impacted the way products are being delivered and consumed in developing nations.
C)Shorter distribution channels have complicated the value chains in most economies.
D)Differences in language, customs, and culture also complicate marketers' ability to communicate with customers in various countries.
E)In most countries, retailers sell below the cost of production and advertise reduced prices in advance of sales.

Question 64

A gaming console developed by a U.S.technology firm is priced at $500 in the United States.The firm markets a modified version of the product in the Indian market to decrease its costs and cater to low-income consumers.The factor that is influencing the product strategy of the firm is:

A)economic development.
B)cultural differences.
C)media availability.
D)trade sanctions.
E)currency fluctuations.

Question 65

A Canadian cement manufacturing firm decides to invest in China.To gain more profits the company decides to invest independently in the new market by setting up its own plants and distributing its products through its own sales force.This type of entry strategy is known as:

A)strategic alliance.
B)exporting.
C)joint venture.
D)franchising.
E)direct investment.

Question 66

The entry strategy that requires the highest levels of investment and exposes firms to significant risks is:

A)direct investment.
B)joint venture.
C)franchising.
D)licensing.
E)strategic alliance.

Question 67

A shoe manufacturing company in Canada wants to pursue global marketing.As part of its globalization, it decides to diversify its products and add leather bags, belts, and other accessories to its product list while entering the local markets in Brazil.Since it has no experience with these new products and little knowledge of local markets, it forms a contract with a local firm in Brazil to produce its products by providing resources and technology to the firm.This is an example of:

A)a strategic alliance.
B)a joint venture.
C)an exporting arrangement.
D)a franchising agreement.
E)direct investment.

Question 68

CADIC serves a group of member hospitals that are located in many countries.The partnering members do not invest in each other's institutions, but CADIC coordinates with members on mutual interests, helping them create value through collaboration.This is an example of:

A)exporting.
B)franchising.
C)a joint venture.
D)a strategic alliance.
E)direct investment.

Question 69

Which of the following is a low-risk method of entering a country's market without setting up operations in the country?

A)Strategic alliance
B)Management contracting
C)Direct investment
D)Contract manufacturing
E)Franchising

Question 70

A popular ice cream chain enters a new market in another country by allowing local retailers to market its products, including the use of its brand name and format.This form of entry strategy into a new market is known as:

A)strategic alliance.
B)direct investment.
C)joint venture.
D)exporting.
E)franchising.

Question 71

The market entry strategy in which a firm entering a new market pools its resources with those of a local firm to form a new company in which ownership, control, and profits are shared is called:

A)licensing.
B)a joint venture.
C)a strategic alliance.
D)direct investment.
E)a franchising agreement.

Question 72

A Canadian firm allows a local firm in Singapore to use its technology to manufacture products and sell them in Singapore.This is an example of:

A)management contracting.
B)a strategic alliance.
C)contract manufacturing.
D)an exporting agreement.
E)direct investment.

Question 73

Michael's Pizza, a popular pizza outlet in Europe, is entering the Indian market as part of its globalization program.The firm decides to develop unique Indian flavours to cater to consumers in India.The cultural difference between the two markets is influencing which strategy of the firm?

A)Product
B)Pricing
C)Communication
D)Distribution
E)Promotion

Question 74

A joint venture differs from direct investment in that direct investment:

A)is formed when a domestic firm provides management consulting to a foreign firm.
B)requires a foreign firm to maintain complete ownership of its facilities in the foreign country.
C)is formed when a foreign firm contracts with a local firm in the host market to manufacture a product.
D)is a low-risk method of entering a country's market without setting up operations in the country.
E)generates returns immediately upon execution of the agreement.

Question 75

An entry strategy in which a firm maintains complete ownership of its plants, operational facilities, and offices in a foreign country is called:

A)a strategic alliance.
B)a joint venture.
C)franchising.
D)licensing.
E)direct investment.

Question 76

A financial services firm enters a new market by combining its resources with a local firm in a foreign country.The firm enters into this alliance because the local firm can provide it with a greater understanding of the market.This entry strategy employed by the firm is called:

A)licensing.
B)a joint venture.
C)a strategic alliance.
D)direct investment.
E)a franchising agreement.

Question 77

The entry strategy that offers firms complete control over their operations in a foreign country is known as:

A)franchising.
B)joint venture.
C)direct investment.
D)exporting.
E)strategic alliance.

Question 78

Lanco Inc., located in Canada, bought the Australian mining company Griffin Coal and now runs a 100-percent owned mining entity in Australia.This venture has allowed Lanco complete control over the local market.This strategy is an example of:

A)strategic alliance.
B)exporting.
C)direct investment.
D)franchising.
E)joint venture.

Question 79

Which of the following is a market entry strategy in which the parent company allows a host country firm to use its name and format and to operate its business in the host country?

A)Exporting
B)Franchising
C)Strategic alliance
D)Joint venture
E)Direct investment

Question 80

A collaborative relationship between independent firms in which the partnering firms do not create an equity partnership is called:

A)a strategic alliance.
B)a franchising agreement.
C)a joint venture.
D)direct investment.
E)indirect exporting.