Deck 4: Developing a Global Vision27

Question 1

NAFTA is the New American Foreign Trade Amendment,which allows for balanced trade with the European Union (EU).

Answer 1

False

Question 2

To protect its local vodka industry,Russia allows foreign manufacturers to have only one percent of the Russian vodka market.Russia uses quotas to control foreign competition.

Answer 2

True

Question 3

Just as mass marketing assumes a large market made up of consumers who are alike,global marketing assumes markets throughout the world are becoming more alike.

Answer 3

False

Question 4

GATT,NAFTA,and the EU are all examples of market groupings.

Question 5

The United States government prohibits the importation of Havana cigars because of political differences with Cuba.This is an example of a boycott.

Question 6

Vast differences in natural resources created international dependence and huge shifts of wealth.

Question 7

Having a global vision means management recognizes and reacts to international marketing opportunities,is aware of threats from foreign competitors in all markets,and effectively utilizes international distribution networks.

Question 8

Even though it is not actively involved in global marketing,Hennessey Enterprises,a U.S.-based business,agreed to sell two thousand of its stress-reducing products to a distribution company in Norway.This would be an example of exporting.

Question 9

Even if all parties to a global business transaction are fluent in a common language,other cultural norms could interfere with the communication process.

Question 10

U.S.-based Procter & Gamble and Italian-based Fater agreed to produce and market diapers for the European market.This is an example of a joint venture.

Question 11

Licensing agreements reduce the risk for manufacturers,and sometimes even remove the requirement for a manufacturer to produce its own product.

Question 12

Multinational companies typically begin the development of their global business with direst investment and continue using this strategy throughout the company's lifespan.

Question 13

The form of global organization that provides the highest potential for return on investment as well as the highest level of risk is contract manufacturing.

Question 14

The U.S.government limits the amount of sweetened candy,cotton,milk,and cotton that can be imported This is an example of a tariff.

Question 15

The same environmental factors that operate in the domestic market also exist internationally.These factors (culture,economic development,political and legal structure,demographics,and natural resources)should be examined regardless of the country.

Question 16

A major benefit of globalization is its creation of jobs and wealth.

Question 17

The United States is the only country that actively engages in global marketing.

Question 18

While some countries have elements of both capitalism and socialism,most nations are at one political extreme or the other.

Question 19

The major disadvantage of licensing agreements is that international companies cannot maintain control over their licensees.

Question 20

According to research done by the World Bank,countries with the least amount of business regulation foster the strongest economies.

Question 21

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.Otis Elevators is an example of a(n):

A) cultural marketer
B) global trader
C) multinational corporation
D) exporting company
E) global enterprise

Question 22

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) actually raises production costs
D) presumes markets throughout the world are becoming more alike
E) is more popular with consumer products rather than industrial goods

Question 23

Your firm,a maker of industrial parts,has never engaged in global marketing.You have just completed an examination of the firm's capabilities and the global environment in which it operates.Which of the following reasons might you employ to convince your boss to think globally?

A) To remain competitive domestically,the firm has to be competitive internationally.
B) A global vision enables managers to understand that customer and distribution networks operate worldwide.
C) The toughest domestic competition is increasingly coming from foreign competition.
D) Global marketing has become imperative for business because many marketing opportunities exist internationally.
E) All of these arguments can and should be offered to your boss.

Question 24

Cardiac Science,a U.S.manufacturer of defibrillators,heart monitoring devices,and other medical related devices,sells 85 percent of its products outside the United States.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:

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
E) assumes language acceptance in each country

Question 25

Arista-Buvez,Inc.manufactures a specialized fish food designed to enhance the natural coloration of tropical fish.The product is exported to 27 countries.Arista-Buvez wants to convey similar messages to its target market in each country and has a small promotional budget.To ensure that the company fully meets the needs of all global markets,Arista-Buvez's most logical choice is to develop a new and unique promotional campaign for each country.

Question 26

A company that is capital-intensive:

A) has an altered fiscal strategy for overseas operations
B) spends more on equipment than on labor
C) requires more money than commonly needed to expand globally
D) creates employment monopolies
E) must engage in countertrading due to restrictive foreign legislature

Question 27

Individuals and organizations utilizing a global vision to effectively market goods and services across national boundaries are engaged in:

A) developing international selling schemes
B) implementing standard international marketing
C) implementing global marketing standardization
D) supplementing their foreign vision
E) practicing global marketing

Question 28

Which of the following statements describes one of the benefits of increased global marketing?

A) Millions of Americans have filled jobs created by imports and production shifts abroad.
B) Because of world trade,inflation is less likely to arrest economic growth.
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.
E) None of the statements describes an advantage derived from the increase in global marketing.

Question 29

A(n)_____ is a company heavily engaged in a global trade that moves its resources,goods,services,and skills across national boundaries.

A) international facilitator
B) global trader
C) multinational corporation
D) exporting company
E) international merchant

Question 30

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.Dow Chemical would be best described as a(n):

A) global enterprise
B) global trader
C) cultural marketer
D) exporting company
E) multinational corporation

Question 31

Which of the following statements about global marketing is true?

A) Marketing to target markets throughout the world has become an imperative for business.
B) Often a U.S.firm's toughest domestic competition comes from foreign 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) Adopting a global vision can be lucrative for a company,and global marketing can offset weak domestic performance.
E) All of these statements about global marketing are true.

Question 32

With a _____,a firm produces standardized products to be sold the same way all over the world.

A) traditional marketing strategy
B) global marketing standardization approach
C) product extension approach
D) culturally-based marketing strategy
E) synergistic approach to marketing

Question 33

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,you should be able to infer that the NBA is:

A) developing international selling schemes
B) implementing standard international marketing
C) implementing global marketing standardization
D) supplementing its foreign vision
E) practicing global marketing

Question 34

The same Timex,Seiko,and Citizen wristwatches you buy in the United States can be purchased around the world.There is no difference in a watch purchased in Russia,in Mexico,or in Singapore because the manufacturers of these watches uses a:

A) ethnocentric strategy
B) global marketing standardization approach
C) synergistic approach to globalization
D) cultural marketing strategy
E) traditional approach to marketing

Question 35

Many people fear world trade because it:

A) will inevitably lead to inflation
B) will cause living standards to increase at a slower rate
C) causes some people to lose their jobs as production shifts abroad
D) has brought entire nations out of poverty
E) has increased per capita income for some countries

Question 36

Which of the following statements about multinational firms is true?

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.
E) The five stages of globalization closely mirror the five stages of the product life cycle.

Question 37

Some distribution strategies that are commonly used in other countries are illegal in the United States.

Question 38

The same rules that controlled bricks-and-mortar retailers are appropriate for any company that wants to become a part of the Internet economy.

Question 39

Wave surfboards are produced in Australia and sold in both Australia and in the United States.The price in the United States for the surfboards is below the price charged for them in Australia.This is an example of dumping.

Question 40

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) excessive employment information
C) countertrading
D) the transference of labor-intensive technology
E) dumping

Question 41

A(n)_____ 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) tariff
B) quota
C) fiscal prerequisite
D) exchange control
E) transfer barrier

Question 42

The Chinese government charges exorbitant taxes on imported steel in order to protect its state-owned steel corporation.This _____ China has also serves to hinder the growth of hundreds of privately held manufacturing companies in China that see imported steel as a way to make prices more competitive.

A) quota
B) export duty
C) boycott
D) tariff
E) WTO violation

Question 43

U.S.wine producers only export about 14 percent of their total annual production of wine.They would like to sell more to overseas markets,but do not want to tailor their wines to consumers' palates.For example,Californian wines are typically heartier and richer than Europeans like to drink.Due to differences in the _____ environment,U.S.wine makers are not having much success in selling their wines in Europe.

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

Question 44

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

A) culture
B) legal
C) economic
D) technological
E) natural

Question 45

Central to any society is a common set of values shared by its citizens that determine what is socially acceptable.Marketers refer to these values collectively as a country's:

A) ethical system
B) culture
C) ethnocentricity
D) national personality
E) socialization

Question 46

When Ikea,the Swedish home furnishings retailer,first entered the Japanese market,it failed.It was more successful in its second try because it was aware of the need to adapt its furnishings to fit the smaller Japanese homes.The _____ environment had the greatest influence on Ikea's first failure in Japan.

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

Question 47

A U.S.executive had no idea that 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 U.S.executive's rudeness,the multimillion dollar deal failed.The U.S.executive overlooked the importance of which environmental factor?

A) culture
B) demographics
C) natural resources
D) economic development
E) political structure

Question 48

A business that is thinking of expanding into global markets needs to examine all of the following external environments EXCEPT:

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

Question 49

Many restaurateurs and consumers refused to buy any French wines because the French government did not support the U.S.'s war on terrorism The refusal to buy French wines,even though they are readily available,is an example of a(n):

A) transfer limit
B) quota
C) tariff
D) exchange control
E) boycott

Question 50

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.This is an example of how the _____ environment influences globalization.

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

Question 51

A(n)_____ is a limit on the amount of a specific product that can enter a country.

A) quota
B) tariff
C) boycott
D) exchange control
E) transfer limit

Question 52

An exclusion of all products from certain countries or companies by a government or group is called a(n):

A) expropriation
B) quota
C) tariff
D) exchange control
E) boycott

Question 53

Muslim countries are receptive to most Disney products,but Disney has been asked when it sells its Winnie the Pooh characters to not sell Piglet because Muslims (as a part of their religious beliefs)contend that pork in any form is unclean.This is an example of a _____ factor that directly affects Disney's global operation.

A) political structure
B) cultural
C) technological
D) competitive
E) natural resource

Question 54

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

A) tariffs
B) boycotts
C) export duties
D) countertrades
E) dumping prohibitions

Question 55

The U.S.government limits the amount of milk that can be imported into the United States.This limitation is an example of a(n):

A) natural resource barrier
B) quota
C) tariff
D) exchange control
E) boycott

Question 56

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 American bourbon a luxury item
C) the enactment of a quota limiting how much Jim Beam can be imported
D) the development of a fad for clear liquor like vodka
E) a dramatic increase in the number of alcoholics in Europe

Question 57

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
E) level of economic development

Question 58

When hospital administrators in Estonia import kidney dialysis machines from the United States,they must pay a tax when these goods enter their country.This tax is called a(n):

A) boycott
B) quota
C) tariff
D) exchange control
E) embargo

Question 59

Which of the following statements about the political environment is true?

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 most efficient 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.
E) All of these statements about the political environment are true.

Question 60

A tax levied on the goods entering a country is called a(n):

A) license
B) quota
C) boycott
D) exchange control
E) tariff

Question 61

An English manufacturer of cricket equipment sells directly to Georgia-based Universal Sports,which markets the products in the United States.(Cricket is a popular sport that is a forerunner of the sport of baseball.)The English manufacturer uses:

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

Question 62

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:

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

Question 63

Companies like Black & Decker and Pillsbury offered an array of products to countries throughout the world,when these countries began encouraging foreign investors and imports.Because of enormous populations in developing countries,these companies predicted a potential for strong annual sales.In addition to population,companies must not overlook _____ factors when considering sales potential in developing countries.

A) demographic
B) political
C) cultural
D) educational
E) country resource

Question 64

Petroleum shortages have resulted in all of the following EXCEPT:

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 ability of 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
E) recognition by the United States and other industrialized countries of their heavy dependence on petroleum

Question 65

The creation of _____ can be used to explain how Ford Motor Company benefited from investing $60 million in a Mexico City manufacturing plant to produce small cars.Former attempts at such direct investment was impossible due to the number and type of existing trade barriers.

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

Question 66

The _____ is the most ambitious global trade agreement ever negotiated; the agreement reduces tariffs by one-third worldwide.

A) Uruguay Round
B) Mercosur
C) GATT
D) NAFTA
E) Maastricht Treaty

Question 67

The goal of the Free Trade Area of the Americas (FTAA)is to:

A) create free-trade agreements between the United States and other industrialized nations
B) eliminate all protectionism
C) raise prosperity levels in all industrializing nations
D) establish a free trade zone throughout the Western Hemisphere
E) make sure that all nations achieve the economic and technological development of a takeover economy or better

Question 68

_____ is a trade agreement,which includes Brazil,Argentina,Chile,Bolivia,Uruguay,and Paraguay.This agreement eliminated the tariffs among these trading partners.

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

Question 69

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

A) exporting
B) licensing
C) contract manufacturing
D) joint ventures
E) direct investment

Question 70

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

A) licensing
B) direct investment
C) contract manufacturing
D) joint ventures
E) exporting

Question 71

Negotiations (such as GATT or the Uruguay Round)between countries that are made to stimulate global exchange and remove barriers are called _____ agreements.

A) trade
B) joint venture
C) CRM
D) exchange
E) licensing

Question 72

The U.S.Rice Millers' Association claims that if the Japanese government would remove the tax on imported U.S.rice,Japanese consumers would save $6 billion annually.This tax is an example of a(n):

A) embargo
B) tariff
C) import quota
D) transfer fee
E) fiscal control

Question 73

Which of the following statements about the European Union (EU)is true?

A) The EU creates a single Europroduct for a generic Euroconsumer.
B) The EU removes all internal trade barriers and standardizes regulations in European countries for easier trade.
C) The EU can correctly be called the "United States of Europe" because all European voters have agreed to these changes.
D) The existence of the EU eliminates protectionist movements by United Europe against the Japanese and the United States.
E) None of these statements about the EU is true.

Question 74

A cooperative of egg producers believes a profitable market for eggs exists overseas where people are not as concerned about cholesterol.If the cooperative decides to export,it will most likely use a(n):

A) commission merchant
B) drop shipper
C) export broker
D) import agent
E) export agent

Question 75

An English manufacturer of cricket equipment sells directly to Georgia-based Universal Sports,which markets the products in the United States and Canada.Universal Sports is an example of a(n):

A) franchisee
B) importer
C) export agent
D) franchisor
E) contract manufacturer

Question 76

_____ 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
E) Expropriation members

Question 77

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) licensing
E) exporting

Question 78

The North American Free Trade Agreement (NAFTA)did NOT:

A) create the world's largest free-trade zone including Canada,the United States,and Mexico
B) deliver rising prosperity for Mexicans,such as rising wages,better benefits,and an expanding middle class with enough purchasing power to keep buying goods from the U.S.
C) provide many new business opportunities to Mexican entrepreneurs
D) remove many tariffs and duties so that Mexico,Canada,and the United States can trade more freely
E) ultimately intend to include Central and South America

Question 79

The _____ of trade negotiations created the _____,which replaces GATT.This trade agreement dramatically lowers trade barriers worldwide.

A) Uruguay Round; World Trade Organization
B) International Court; European Union
C) North American Triangle; NAFTA
D) Paraguay Round; South American Free Trade Agreement
E) Mercosur; European Union

Question 80

Vast differences in natural resources create all of the following EXCEPT:

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