Deck 10: Marketing Globally

Question 1

Global markets offer expanded access to ________.

A) Raw materials
B) Intellectual property
C) Human capital
D) All of the above
E) None of the above

Answer 1

D

Question 2

Marketing approaches that work in the United States may be ________ or ________ elsewhere, so it is important to work with experienced, successful marketers for exports.

A) Ineffective, offensive
B) Effective, offensive
C) Effective, unpleasant
D) Ineffective, acceptable
E) Unsuccessful, acceptable

Answer 2

A

Question 3

Selected trade intermediaries include all of the following except ________.

A) Confirming house
B) Export agents
C) Export trading company
D) Remarketers
E) Postexport marketers

Answer 3

E

Question 4

The U.S. market has over 300 million people, while the global market is approximately ________ billion, presenting huge expansion potential for many businesses.

A) 7.1
B) 9
C) 8.2
D) 5.8
E) 6

Question 5

Which of the following is not a strategy option for global marketing?

A) Importing
B) Exporting
C) Forming strategic alliances
D) Locating abroad
E) Local distribution

Question 6

How many dollars is €6.25 worth if the exchange rate is $1.00 is worth €1.25?

A) $5.00
B) $5.25
C) $6.00
D) $6.25
E) $8.00

Question 7

________ is relocating company operations to foreign locations.

A) Offshoring
B) Outsourcing
C) Reallocating
D) Centralizing
E) Formalizing

Question 8

There is ________ in global marketing, the possibility of a country's political structure and policies negatively impacting a foreign company transacting business inside its borders.

A) Political risk
B) Radical risk
C) Partisan risk
D) Dogmatic risk
E) Administrative risk

Question 9

Significant challenges and financial costs of exporting include ________.

A) Finding the right trading partners
B) Overcoming information barriers
C) Coping with volatile political conditions
D) Coping with volatile economic conditions
E) All of the above

Question 10

One reason for setting up international facilities is an established international customer base. This may warrant a ________ close to the customers.

A) Sales office
B) Distribution center
C) Production facility
D) All of the above
E) None of the above

Question 11

There are numerous Web sites with valuable information on countries and trading that may ________.

A) Be excellent sources of specific resources
B) Provide opportunities for cost reduction
C) Represent a treasured customer base
D) All of the above
E) None of the above

Question 12

________ is the sale of products produced in a foreign country to customers in your home country.

A) Importing
B) Smuggling
C) Exporting
D) Rummaging
E) Pillaging

Question 13

Higher ________ rates and lower ________ rates are reported among companies that export compared to those that do not.

A) Growth, failure
B) Development, failure
C) Growth, disaster
D) Progress, failure
E) Decay, failure

Question 14

An international trip taken by government officials and businesspeople to promote exports or to attract investment is known as a ________.

A) Trade mission
B) Trade assignment
C) Trade undertaking
D) Skill mission
E) Trade operation

Question 15

Exporting disadvantages may include ________.

A) Sell excess production capacity
B) Gain information about foreign competition
C) Enhance potential for corporate expansion
D) Stabilize seasonal market fluctuations
E) Modify products or packaging

Question 16

In order to take advantage of these location-specific resources, companies must reach across borders and/or ________.

A) Import products
B) Acquire human capital
C) Create their own locations
D) All of the above
E) None of the above

Question 17

Strategic alliances may be based on ________.

A) Technology
B) Production
C) Distribution
D) All of the above
E) None of the above

Question 18

For many companies, cost reductions have been attained by all of the following except ________.

A) Locating a facility abroad
B) Securing raw material abroad
C) Manufacturing suppliers in foreign markets
D) Bringing foreign production to domestic locations
E) None of the above

Question 19

Which of the following is not a common export?

A) Lawn service
B) Travel
C) Entertainment
D) Telecommunications
E) Health care

Question 20

Which of the following is not an exporting cost above and beyond labor and materials?

A) Export Packaging
B) Container Loading
C) Inland Freight
D) Tariffs
E) Liability Insurance

Question 21

Regional Trade Agreements focus on strengthening barriers at the border and increasing tariffs to increase market access between member states.

Question 22

Exporting can be defined as ________.

A) Selling goods or services produced domestically to foreign customers
B) Selling goods or services produced domestically to local customers
C) Selling goods or services produced oversees to domestic customers
D) Buying goods or services produced domestically
E) Selling goods or services produced by foreign companies

Question 23

What is an acceptable business practice in one country can be considered rude and inappropriate in another.

Question 24

Information resources for international trade do not include which of the following?

A) United States Department of Commerce
B) Small Business Development Centers
C) United State Export Assistance Centers
D) District Export Councils
E) North American International Committee

Question 25

Taxes or duties on goods and services imported into a country are ________.

A) Tariffs
B) Quotas
C) Embargoes
D) Dumping
E) None of the above

Question 26

A major reason to export goods to foreign markets for U.S. companies is to stabilize seasonal market fluctuations.

Question 27

________ is the relative value between one currency and another. It describes the buying power of a currency.

A) The foreign exchange rate
B) The overseas exchange rate
C) The foreign conversion rate
D) The foreign exchange ratio
E) The alien exchange rate

Question 28

Companies that are interested in exporting have many resources available for the exploration of their options including ________.

A) World Trade Center affiliates
B) International trade lead service
C) Trade intermediaries
D) Trade missions
E) All of the above

Question 29

Reasons to export include ________.

A) Increase sales and profits
B) Gain global market share
C) Reduce dependence on existing markets
D) Stabilize seasonal market fluctuations
E) All of the above

Question 30

The EWCP is a loan-guaranty program offered to commercial banks by the SBA to encourage lending to businesses that generate export sales and need working capital.

Question 31

Which of the following is not a reason for acquiring human capital resources globally?

A) Scarcity of qualified labor in domestic markets
B) Scarcity of skilled labor in domestic markets
C) Prohibitively high cost of local labor
D) Local market containing a sufficient supply of labor
E) All of the above are reasons.

Question 32

Which of the following is not a management issue in the decision to export?

A) Management objectives
B) Experience
C) Personnel
D) Production capacity
E) Personal philosophy

Question 33

________ can be a critical part of global market expansion because it/they create(s) unique, highly specialized opportunities.

A) Intellectual property
B) Products
C) Technologies
D) All of the above
E) None of the above

Question 34

The world has many interesting locations with unique combinations of resources. Not included in these resources are ________.

A) Skilled labor
B) Minerals
C) Crops
D) Petroleum
E) Technology

Question 35

If products, labeling, and packaging do not have to be modified and if incremental costs can be covered, exporting is not a successful business strategy.

Question 36

The Member States of the European Free Trade Association (EFTA) are England, Liechtenstein, Norway, and Switzerland.

Question 37

The International Trade Loan program from the SBA is for exporters and for companies that have been adversely affected by imports and is intended to improve the borrower's competitive position.

Question 38

A strategic alliance involving two or more firms in which each partner provides a particular set of skills or resources is the worst way for an entrepreneur to reach global markets.

Question 39

Royalties are fees paid to a licensor by a licensee based upon production or sales of the licensed product.

Question 40

The European Union is a political and economic confederation formed in 1993 that has addressed foreign and security policy, created a central bank, and adopted a common currency.

Question 41

Economic risk is the possibility that changes in the economy of the country where it does business will cause financial or other harm.

Question 42

Because of intense price competition at the global level, you may have to import to remain competitive.

Question 43

What resources might you more easily acquire from a foreign country? How could that help your business?

Question 44

A small business started today can be "born global," with the intention of operating across geographic and political borders from the beginning.

Question 45

Some established franchisors make territories available internationally, typically by country or region.

Question 46

Discuss how exporting can expand your possible market.

Question 47

Cultural and linguistic dissimilarities between employees of different countries can be a source of inspiration and learning as well as friction and miscues.

Question 48

How could you utilize loan and finance programs for small businesses to enter the international marketplace?

Question 49

What are some disadvantages of exporting that could have a negative impact on your business?

Question 50

What economic and political risks could affect your decision to do business internationally? How could you reduce those risks?