Deck 7: Global Marketing

Question 1

Changes in __________ have been the driving force for growth in global markets for decades.

A) taxation
B) human development
C) technology
D) trading blocs
E) global labor unions

Answer 1

C

Question 2

Most Americans tend to take access to global products and services for granted.

Answer 2

True

Question 3

The North American Free Trade Agreement created an economic and monetary union among the three countries.

Answer 3

False

Question 4

Exporting refers to a situation where a company maintains ownership of its plants,operational facilities,and offices in a foreign country in which it sells its products.

Question 5

Colin wants information about the infrastructure in the countries his company is planning to export to.He will gather information about the transportation and communications capabilities in each country.

Question 6

The globalization of consumption is also known as offshoring.

Question 7

Globalization refers to the process by which goods,services,capital,people,and ideas:

A) are on shored and offshored.
B) flow across national borders.
C) are integrated through IMF facilitation.
D) form joint ventures.
E) all of these.

Question 8

There is only one global product strategy: to sell a product or service similar to that sold in the home country,but include minor adaptations.

Question 9

The IMF is the only international organization that deals with the global rules of trade among nations.

Question 10

The Big Mac Index is a measure of economic health in a country.

Question 11

Entering into a global franchise agreement exposes a company to higher risk than if the company had entered into direct investment in the country.

Question 12

When entering into a joint venture,the burden of ownership,control and profits is not shared.

Question 13

Global expansion often begins when a firm receives an order for its product from another country.

Question 14

Less-developed countries like Switzerland and Britain are experiencing rapid population growth.

Question 15

Globalization refers to the process by which __________ flow(s)across national borders.

A) goods
B) services
C) capital
D) people
E) all of these

Question 16

The greater the wealth of a country,generally,the better the opportunity a firm will have in that particular country.

Question 17

Changes in technology,especially communications technology,have been the driving force for growth in global markets.

Question 18

An effective global pricing strategy can be easily established by setting the same prices in every market around the world.

Question 19

Tariffs artificially lower prices and therefore lower demand.

Question 20

Offshoring originally focused on relocating manufacturing to:

A) only islands offshore in the Caribbean.
B) only trade surplus nations.
C) NAFTA and then GATT countries.
D) World Bank Group developed countries.
E) lower cost producing countries.

Question 21

Despite criticism,globalization has:

A) benefited all groups in the world economy.
B) allowed firms to increase domestic investment.
C) prevented illegal trade activities.
D) reduced the role of the WTO.
E) progressed at a steady and increasing pace.

Question 22

The __________,which was later replaced by the WTO,was designed to lower trade barriers.

A) World Bank
B) European Union
C) GATT
D) NAFTA
E) IMF

Question 23

The Big Mac Index is a novel measure of:

A) GDP.
B) purchasing power parity.
C) per capita GNI.
D) economic growth.
E) international trade surplus.

Question 24

The WTO provides all of the following functions EXCEPT which of the following?

A) It maintains the international monetary system.
B) It acts as a forum for trade negotiations.
C) It settles trade disputes.
D) It reviews national trade policies.
E) It assists developing countries with trade policy issues.

Question 25

Offshoring refers to:

A) globalization of production.
B) trading bloc outside agreements.
C) human development potential production.
D) cultural imperialism.
E) purchasing production parity.

Question 26

Chris is gathering information about the general economic environment in Nepal.He will look for information about the general economic environment,population size and growth rate,and:

A) culture.
B) real income.
C) airport capabilities.
D) political situation.
E) religious institutions.

Question 27

The __________ provides loans and technical assistance to developing countries.

A) World Bank
B) European Union
C) GATT
D) WTO
E) IMF

Question 28

Gross national income equals GDP:

A) minus net consumer spending.
B) plus government spending on international trade.
C) minus purchasing power parity.
D) plus the net investment income earned from abroad.
E) plus gross domestic international investment.

Question 29

The main function of the __________ is to ensure that trade flows as smoothly,predictably,and freely as possible.

A) World Bank
B) European Union
C) GATT
D) WTO
E) IMF

Question 30

The components of global market assessment include all of the following EXCEPT:

A) sensory analysis.
B) infrastructure and technology analysis.
C) analysis of government actions.
D) sociocultural analysis.
E) economic analysis.

Question 31

The most common measure of market potential of an economy is a country's:

A) GNI.
B) GDP.
C) PPP.
D) CPI.
E) APR.

Question 32

To determine the market potential for its particular product or service,a firm should use:

A) GDP data.
B) unemployment data.
C) purchasing power parity data.
D) inflation data.
E) as many measures as it can obtain.

Question 33

Manufacturers would prefer to produce in a country with a trade __________,because it signals a greater opportunity to export products to more markets.

A) surplus
B) deficit
C) culture
D) bonus
E) balance

Question 34

Originally,offshoring focused on relocating __________ to lower cost producer countries.

A) services
B) countertrade
C) manufacturing
D) franchising
E) institutions

Question 35

The primary criticism of the World Bank is that it is a puppet of Western industrialized countries that:

A) use the World Bank to settle trade disputes.
B) do not allow the World Bank to objectively review trade policies.
C) use World Bank loans to promote their globalization efforts.
D) subsidize the World Bank in order to maintain a stable monetary policy.
E) all of these.

Question 36

The goal of the World Bank is to:

A) maintain the international monetary system.
B) act as a forum for trade negotiations.
C) settle trade disputes.
D) review national trade policies.
E) reduce poverty through low-interest loans and other programs.

Question 37

One criticism of the __________ is that it loans too much money to third-world countries,making it almost impossible for these countries to pay back the loans.

A) IMF
B) GATT
C) WTO
D) World Bank
E) NAFTA

Question 38

The IMF and World Bank benefit global marketers by:

A) acting as a forum for corporate trade negotiations.
B) raising the global standard of living.
C) reviewing visionary mission statements.
D) maintaining variable rate financing for manufacturers.
E) all of these.

Question 39

Offshoring has expanded to include products of the __________: medical,financial,technological,and consulting services.

A) infrastructure
B) knowledge economy
C) IMF
D) exchange coalition
E) strategic sector

Question 40

GDP is defined as:

A) the value of a country's exports minus its imports.
B) great domestic product.
C) the market value of goods and services produced in a country in a year.
D) national income minus national taxes.
E) the gross purchasing power of domestic goods and services plus international income.

Question 41

As part of efforts to stimulate economic development in Africa,the Gates Foundation announced that it would provide cellular phones to farmer cooperatives.The Gates Foundation recognized problems in __________ exist in many African markets.

A) transportation
B) communication
C) distribution
D) commerce
E) population

Question 42

The shift of population from rural to urban areas in countries such as India helps global marketers by:

A) decreasing pollution.
B) simplifying the supply chain needed to make goods and services available.
C) increasing the human development index.
D) decreasing competition for intellectual capital.
E) increasing nonmaterial GDP output.

Question 43

The __________ is a composite measure of three indicators of the quality of life in different countries.

A) purchasing parity index.
B) human development index.
C) gross domestic power index.
D) gross national investment index.
E) zero population growth index.

Question 44

Changes in tariffs and quotas are:

A) business actions stimulating imports.
B) corporate strategies designed to maximize profits.
C) government actions that reduce competition from international firms.
D) efforts to stimulate choices among government agencies.
E) all of these.

Question 45

If foreign companies try to gain market share in the United States by selling goods below what it costs to make them,the U.S.government can fine the companies and distribute the collected fines to affected U.S.companies.This foreign company's practice is known as:

A) countertrade.
B) reciprocal pricing.
C) quota dodging.
D) dumping.
E) non-reciprocity.

Question 46

Exchange controls refers to the regulation of a country's:

A) comparative inflation rate.
B) countertrade exchange.
C) quota rate of exchange.
D) exchange tariffs.
E) currency exchange rate.

Question 47

Developed countries are experiencing __________ population growth.

A) slight
B) zero or negative
C) infinite
D) moderate
E) significant

Question 48

When Ben evaluated the commercial infrastructure in Mauritius,he considered the island's:

A) population control measures.
B) legal,banking,and regulatory systems.
C) retailing capabilities.
D) per capita income estimates.
E) all of these.

Question 49

When considering global marketing opportunities in Bangladesh,Tom asked the question,"How will we get it there?" Tom is concerned about __________ capabilities in Bangladesh.

A) production capacity
B) pricing
C) advertising
D) infrastructure
E) cultural

Question 50

According to purchasing power parity theory,if __________ is / are in equilibrium,products will cost the same in each country.

A) imports and exports
B) consumer spending
C) interest rates
D) domestic products
E) exchange rates

Question 51

In most cases,countries use tariffs to reduce foreign competition,but tariffs are also used:

A) to shorten supply chains.
B) as a response to perceived unfair trade practices.
C) to offer domestic discounts.
D) to stimulate consumer demand.
E) as a way to equalize quotas.

Question 52

A __________ limits the quantity of imported merchandise,thus minimizing competition faced by domestic products.

A) tariff
B) duty
C) boycott
D) dumping tax
E) quota

Question 53

A __________ is a campaign to get consumers to choose not to purchase products from a country.

A) tariff
B) duty
C) boycott
D) quota
E) dumping tax

Question 54

One of the reasons for the surge in foreign-made textiles in the United States was elimination of __________ on foreign-made textiles.

A) tariffs
B) duties
C) boycotts
D) quotas
E) dumping taxes

Question 55

Economic measures like GDP and GNI do not fully account for a country's economic health because they only measure:

A) material output.
B) international trade.
C) global expectations.
D) purchasing power parity.
E) poverty potential.

Question 56

Cory is working on a global marketing assessment team looking out well into the future to help determine the most attractive market areas around the world.He is evaluating market sizes and growth rates.Based on population growth rates in different regions,he should consider that:

A) countries with high purchasing power today may not continue to show the same growth in the future.
B) the United States and Western Europe will have dramatic increases in population growth leading to overcrowding.
C) the middle class in India will continue to shrink as the rich get richer and the poor get poorer.
D) urban population centers will become increasing unattractive and the rural areas will experience major growth in population.
E) all of these.

Question 57

Tariffs protect domestic producers by:

A) making imported products more expensive.
B) increasing brand recognition.
C) reducing the cost of production.
D) offering subsidies to exports.
E) avoiding boycotts.

Question 58

The human development index does NOT include:

A) gross domestic product.
B) life expectancy.
C) educational attainment.
D) purchasing power of average incomes.
E) The human development index includes all of these.

Question 59

India's Panaloon Retail succeeded when it:

A) brought Western-style wide aisles and well-stocked shelves to stores as a welcome alternative to cramped shopping.
B) appealed directly to affluent customers by creating a shopping experience directly targeted to their needs,especially the status-conscious needs.
C) gave up on its modern presentation and emulated noisy,messier and more cramped presentations.
D) copied Walmart's effective use of logistics and everyday low pricing.
E) introduced modern credit and debit cards to facilitate the shopping experience.

Question 60

When Darren assessed infrastructure conditions in Paraguay,he assessed the country's __________ capabilities.

A) transportation
B) commerce
C) distribution channels
D) communications
E) all of these

Question 61

In recent years,the decline in the value of the dollar has hurt U.S.marketers who:

A) export goods to other countries.
B) import goods from other countries.
C) engage in countertrade.
D) enforce import quotas.
E) all of these.

Question 62

Paula has done exceptionally well in developing U.S.domestic markets,but she has had to learn new rules when marketing overseas.She has been struggling to learn how to communicate her product's benefits and features in foreign markets.Not only did she have to learn how to use a foreign language,she had to learn how __________ affected how potential customers would view her product.

A) thoughts,beliefs,and assumptions
B) symbols,ceremonies,behavior,dress,and physical settings
C) power,uncertainty,individualism,time,and dominant values
D) verbal and nonverbal cues
E) all of these

Question 63

When the value of the dollar declines in relation to other currencies,it benefits U.S.marketers who:

A) export goods to other countries.
B) import goods from other countries.
C) engage in countertrade.
D) enforce import quotas.
E) all of these.

Question 64

Which of the following is NOT one of the major trade agreements affecting global marketing?

A) NAFTA
B) EU
C) GNI
D) ASEAN
E) CAFTA

Question 65

When assessing internal capabilities to support global expansion,a firm will consider its:

A) access to capital.
B) current markets.
C) manufacturing capacity.
D) proprietary assets.
E) all of these.

Question 66

Which of these represents the highest level of integration among participating nations,involving both economic and monetary agreements?

A) NAFTA
B) EU
C) GNI
D) ASEAN
E) CAFTA

Question 67

The __________ represents a significant restructuring of the global marketplace by dramatically lowering trade barriers among an expanded number of member nations.

A) NAFTA
B) EU
C) GNI
D) ASEAN
E) CAFTA

Question 68

NAFTA is limited to trade-related issues such as:

A) labor mobility.
B) monetary union.
C) tariffs and quotas.
D) banking and financial union.
E) all of these.

Question 69

Marketers sometimes use Hofstede's cultural dimensions to design marketing campaigns:

A) with low individualism symbolism when confronted with a time oriented culture.
B) using uncertainty avoidance to reduce power distance.
C) with significant power distance.
D) consistent with underlying cultural values in a country.
E) all of these.

Question 70

Global businesses often find it particularly difficult to understand the __________ of a country's culture.

A) symbols
B) underlying values
C) ceremonies
D) dress
E) visible artifacts

Question 71

Geert Hofstede's cultural dimensions concept focuses on five dimensions of __________ in a country.

A) symbols
B) underlying values
C) ceremonies
D) dress
E) visible artifacts

Question 72

Generally,firms entering foreign markets begin with:

A) less risky strategies first.
B) direct investment.
C) importing.
D) decentralized production.
E) cultural output.

Question 73

Diana's firm makes pumps and valves,and it has begun expanding internationally.A firm in Argentina responded to the company's website to inquire about becoming a distributor for the firm,and Diana is trying to analyze the opportunity.In her analysis,she will look at the implications of Argentina's membership in:

A) NAFTA.
B) CAFTA.
C) ASEAN.
D) Mercosur.
E) all of these.

Question 74

Marketers in the European Union have benefited from streamlined and simplified __________ rules.

A) privacy
B) advertising
C) direct selling
D) patent application
E) all of these

Question 75

When entering a foreign market,the least risky strategy is:

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

Question 76

Culture affects:

A) how consumers decide to make their purchases.
B) what consumers decide to purchase.
C) when consumers decide to make their purchases.
D) where consumers decide to make their purchases.
E) every aspect of consumers' purchase decisions.

Question 77

Critics of trading blocs argue that these agreements:

A) stimulate the economies by lowering trade barriers and attracting higher levels of foreign investment.
B) stimulate the economies by raising trade barriers and attracting lower levels of foreign investment.
C) offer too many cultural imperatives.
D) result in an unfair trading advantage among participants.
E) all of these.

Question 78

Which of the following is NOT one of Hofstede's cultural dimensions?

A) Power distance
B) Certainty assurance
C) Masculinity
D) Individualism
E) Time orientation

Question 79

Marketers considering operations and trade with a specific country must consider whether or not the country belongs to a trading bloc.A trading bloc is a group of countries:

A) that have established a formal agreement to manage trade activities.
B) using the same currency.
C) with similar cultural shopping patterns.
D) located next to each other.
E) with similar political views.

Question 80

Chris had laughed at some of the cultural mistakes companies had made in advertising and promotion in international trade while he was in school.Now he was trying to determine what had gone wrong with the campaign he had planned in Latin America for his company's product,and it didn't seem quite as amusing.He narrowed the issues down to sociocultural factors.He was looking at both __________ and __________.

A) product uses; currency rates
B) language; trading blocs and social structure
C) potential boycotts; symbols
D) visible artifacts; underlying values
E) verbal communication; logistics