Deck 2: Global, ethical, and Sustainable Marketing

Question 1

Exporting products overseas is an example of ________.

A)countertrade
B)a market-entry strategy
C)a marketing mix strategy
D)fair trade
E)a convertible trade

Answer 1

B

Question 2

Azerbaijan imported wheat from Romania in exchange for crude oil and Vietnam exchanged rice for Philippine fertilizer and coconuts.Both scenarios are examples of which of the following?

A)convertible trade
B)tariffs
C)quotas
D)protectionism
E)countertrade

Answer 2

E

Question 3

Malaysia,Indonesia,Singapore,Thailand,and Cambodia are all members of ________.

A)the Andean Group
B)ASEAN
C)MERCOSUR
D)NAFTA
E)APEC

Answer 3

B

Question 4

A(n)________ is a group of countries that have agreed to coordinate trade policies and ease restrictions on the flow of products and capital across members' borders.

A)monopoly
B)free trade zone
C)economic community
D)oligopoly
E)economic infrastructure

Question 5

Which of the following countries is NOT a member of MERCOSUR?

A)Brazil
B)Paraguay
C)Bolivia
D)Uruguay
E)Venezuela

Question 6

The purpose of a government-imposed ________ is to give domestic competitors an advantage in the marketplace by making foreign competitors' goods more expensive than domestic goods.

A)monopoly
B)quota
C)tariff
D)oligopoly
E)embargo

Question 7

Management at Growing Green,a company that markets organic and environmentally friendly gardening and landscaping supplies and equipment,are evaluating the benefits and disadvantages of indirect exporting,direct exporting,and licensing.In which stage of the international marketing process is Growing Green?

A)deciding whether to go global
B)deciding which global markets are most attractive
C)deciding which market-entry strategy is best
D)deciding on the marketing mix strategies for foreign markets
E)deciding on the global marketing organization

Question 8

NAFTA is a(n)________.

A)South American economic community
B)common market for eastern and southern Africa
C)economic community that includes Peru,Brazil,and China
D)trade agreement that includes Canada,Mexico,and the United States
E)eastern European economic community that competes with the EU

Question 9

________ refers to the total value of all the exports and imports of the world's nations.

A)Countertrade
B)International marketing
C)Gross national product
D)Gross domestic product
E)World trade

Question 10

Which of the following statements about the World Trade Organization (WTO)is true?

A)The WTO is a branch of the U.S.government.
B)Only countries that belong to established economic communities are granted membership in the WTO.
C)Only developed nations are granted membership to the WTO.
D)The WTO's main function is to help least developed countries grow their economies.
E)The WTO is the only international organization that deals with the global rules of trade between nations.

Question 11

A country that barters for imported products rather than paying in cash likely does so because its currency is convertible.

Question 12

Describe the four steps a firm should take when it is considering going global.

Question 13

When a government adopts a policy of ________,it enforces rules on foreign firms in order to give home companies an advantage.

A)gray marketing
B)countertrade
C)monopolistic competition
D)economic sanctions
E)protectionism

Question 14

The General Agreement on Tariffs and Trades (GATT)________.

A)is composed of 10 developed nations who make trade decisions for all other countries
B)was created by the United States shortly after World War II
C)is an example of a regional economic community
D)led to the creation of the WTO
E)sets international import quotas

Question 15

A(n)________ is an extreme quota that completely prohibits commerce and trade with a specific country.

A)tariff
B)embargo
C)protectionist quota
D)perfect monopoly
E)expropriation

Question 16

Why would almost all Americans be considered participants in the global marketplace?

Question 17

The global economic crisis of 2009 had little effect on the volume of world trade that year.

Question 18

Which of the following is the first step a firm should take when deciding whether or not to go global?

A)Develop marketing mix strategies for foreign markets.
B)Analyze whether it is in the firm's best interest to focus on the domestic market or to expand to international markets.
C)Identify the most attractive global markets for the firm's products.
D)Select a market-entry strategy that fits the firm's desired level of commitment.
E)Identify potential partners in international markets.

Question 19

The purpose of an import quota is to ________.

A)eliminate competition for a nation's domestic industries
B)increase competition for a nation's domestic industries
C)reduce competition for a nation's domestic industries
D)make foreign competitors' goods less expensive than domestic goods
E)make foreign competitors' goods more expensive than domestic goods

Question 20

Trading firms that work out elaborate deals in which they trade or barter their products with one another or even supply goods in return for tax breaks from the local government are using ________.

A)protectionism
B)competitive intelligence
C)gray marketing
D)countertrade
E)inflation

Question 21

Trusted Wholesalers is a company that purchases products produced in Mexico and sells them to companies based in the United States and Canada.Management at Trusted Wholesalers would most likely be interested in becoming experts in the agreements made by ________.

A)the EU
B)NAFTA
C)CAFTA
D)APEC
E)MERCOSUR

Question 22

The main pursuit of the World Trade Organization (WTO)is to guarantee basic human rights in all markets.

Question 23

Marketers need to understand the ________ environment of a country from two perspectives: the overall level of development of a country and the current stage of its business cycle.

A)political and legal
B)sociocultural
C)economic
D)technological
E)natural

Question 24

Russia implemented a policy of protectionism that limited the importing of meats.Explain why Russia might have implemented such a policy.

Question 25

Which of the following measures is often a good indicator of a country's economic health because it is adjusted for the population size of each country?

A)per capita GDP (gross domestic product)
B)GNP (gross national product)
C)the Big Mac Index
D)standard of living
E)economic infrastructure

Question 26

The only member countries of the North American Free Trade Agreement (NAFTA)are the United States,Canada,and Mexico.

Question 27

Governments use tariffs to give domestic competitors an advantage in the marketplace by making foreign competitors' goods more expensive.

Question 28

The most commonly used measure of a country's economic health is the country's ________.

A)gross domestic product (GDP)
B)gross national product (GNP)
C)exchange rate
D)cost of living
E)Big Mac Index

Question 29

The World Trade Organization (WTO)does not deal with issues concerning the protection of copyright and patent rights.

Question 30

U.S.sugar import quotas have existed for more than fifty years and preserve about half of the U.S.sugar market for domestic producers.These quotas are examples of ________.

A)embargoes
B)nationalization
C)protectionism
D)expropriation
E)disintermediation

Question 31

The U.S.government proposed a tariff against some Chinese textiles and clothing when the trade deficit with China reached $103 billion.Explain what the United States was trying to achieve through this action.

Question 32

Describe the function of an economic community and explain how its policies can be advantageous to marketers.Give two examples of important economic communities.

Question 33

Describe the function of the World Trade Organization (WTO)and explain how it originated.

Question 34

U.S.sugar import quotas have existed for more than 50 years and preserve about half of the U.S.sugar market for domestic producers.Why does the United States continue to have these quotas?

A)to reduce competition for its domestic sugar industry
B)to increase the cost of sugar
C)to control the supply and demand for sugar
D)to support a mass market for sugar
E)to improve the promotion of sugar

Question 35

The euro is the currency used by ________.

A)NAFTA
B)MERCOSUR
C)the EU
D)the WTO
E)GATT

Question 36

In February 2000,the United States imposed a tax on imported steel in an effort to protect about 5,000 U.S.jobs.Another name for this levied tax is a(n)________.

A)embargo
B)gray tax
C)tariff
D)import quota
E)boycott

Question 37

Which of the following countries has the largest total GDP?

A)China
B)Japan
C)Spain
D)Ecuador
E)Hungary

Question 38

Each industry sets import quotas for its products to determine yearly production volume.

Question 39

Costa Rica,the Dominican Republic,El Salvador,and several other Central American countries formed the CAFTA economic community.This is an example of a policy of protectionism.

Question 40

What is protectionism and why might a government adopt it as a policy? Explain how three examples of protectionism function.

Question 41

A severe recession is a depression,a period in which prices fall but there is little demand because few people have money to spend and many are out of work.This condition is part of ________.

A)the competitive environment
B)the business cycle
C)the technological environment
D)the legal environment
E)social norms

Question 42

Through ________ competition,competitors offer different goods and services that attempt to satisfy the same consumers' needs and wants.

A)discretionary income
B)product
C)brand
D)monopolistic
E)oligopolistic

Question 43

France,Italy,and Germany boast sophisticated marketing systems and are three good examples of ________.

A)preindustrial countries
B)least developed countries (LDCs)
C)developing countries
D)developed countries
E)BRIC countries

Question 44

Which of the following is NOT among the largest of the world's developing countries?

A)Brazil
B)Russia
C)India
D)Canada
E)China

Question 45

In a(n)________ structure,one seller controls a market.

A)monopoly
B)oligopoly
C)monopolistic competition
D)perfect competition
E)natural competition

Question 46

Which of the following best explains why marketers are attracted to the BRIC countries?

A)These countries have long-established upper classes that form a strong market for luxury goods.
B)These countries are quickly moving from being least developed to developing countries.
C)These countries have masses of consumers who are not yet wealthy but are quickly moving to economic prosperity.
D)These countries offer large markets with no language or cultural barriers.
E)These countries wield the most power in the Group of Eight.

Question 47

In a(n)________ structure,there are many sellers,each having slightly different products and each having only a small share of the market.

A)monopoly
B)oligopoly
C)monopolistic competition
D)perfect competition
E)natural competition

Question 48

________ income is the amount of money an individual has left to spend after paying for necessities such as housing,utilities,food,and clothing.

A)Discretionary
B)Gross product
C)Standard of living
D)Inflationary
E)Per capita

Question 49

A country's ________ indicates the average quality and quantity of goods and services consumed within the country.

A)economic infrastructure
B)standard of living
C)gross domestic product (GDP)
D)gross national product (GNP)
E)business cycle

Question 50

The measurable quality of a country's distribution,financial,and communication systems is referred to as the country's ________.

A)level of economic development
B)standard of living
C)gross domestic product (GDP)
D)economic infrastructure
E)business cycle

Question 51

In a(n)________ structure,there are many small sellers,each having similar products,and each unable to have a significant impact on the quality,price,or supply of a product.

A)monopoly
B)oligopoly
C)monopolistic competition
D)perfect competition
E)natural competition

Question 52

In most cases,which of the following is true about a least developed country (LDC)?

A)It has an economy based on agriculture.
B)It is landlocked.
C)It has a viable middle class.
D)It has high literacy levels.
E)It has an advanced economic infrastructure.

Question 53

The United States,the United Kingdom,Australia,Canada,France,Italy,Germany,and Japan are all members of ________.

A)the BRIC countries
B)the Group of Eight
C)the EU
D)NAFTA
E)APEC

Question 54

In a(n)________ structure,there are a relatively small number of sellers,each holding substantial market share,in a market with many buyers.

A)monopoly
B)oligopoly
C)monopolistic competition
D)perfect competition
E)natural competition

Question 55

Which of the following occurs when prices and the cost of living rise while money loses its purchasing power?

A)prosperity
B)recovery
C)inflation
D)deflation
E)a depression

Question 56

The YMCA and Gold's Gym engage in ________ competition when they both try to attract customers to buy their fitness center services.

A)discretionary income
B)product
C)brand
D)monopolistic
E)oligopolistic

Question 57

The widespread use of RFID chips to relay information about products during distribution represents a change in the ________.

A)sociocultural environment
B)economic environment
C)legal environment
D)technological environment
E)competitive environment

Question 58

Through ________ activities,a firm gathers and analyzes publicly available information about rivals.

A)economic infrastructure
B)competitive intelligence
C)demographic
D)perfect competition
E)business cycle

Question 59

The ________ is the price of a nation's currency in terms of another currency.

A)expropriation
B)standard of living
C)import quota
D)tariff
E)foreign exchange rate

Question 60

Which of the following is most characteristic of a developing country?

A)The country is moving away from an economy based on industry.
B)The market for consumer goods presents little growth potential.
C)The nation has an economy based on agriculture.
D)The country has a significant middle class.
E)The country has an economy based on exporting services.

Question 61

Consumer ________ is the belief that the products made in one's own country are superior to those from other countries.

A)nationalization
B)ethnocentrism
C)domestication
D)expropriation
E)democratization

Question 62

Nationalization occurs when a government ________.

A)reimburses a foreign company for its assets after taking over the company
B)reimburses a foreign company that has lost facilities due to natural causes
C)refuses to allow its businesses to engage in exporting
D)takes over a foreign operation and provides the seized operation with no reimbursement
E)imports more than it exports

Question 63

The ________ was developed to eliminate monopolies and to guarantee free competition.

A)Sherman Antitrust Act
B)Clayton Act
C)Robinson-Patman Act
D)Wheeler-Lea Act
E)Lanham Trademark Act

Question 64

The ________ environment refers to the local,state,national,and global laws and regulations that affect businesses.

A)political and legal
B)sociocultural
C)economic
D)technological
E)natural

Question 65

Which of the following is a form of protectionism?

A)joint ventures
B)bribery
C)extortion
D)collectivism
E)local content rules

Question 66

In a(n)________ culture,people tend to subordinate their personal goals to those of a stable community.

A)collectivist
B)individualist
C)democratic
D)demographic
E)ethnocentric

Question 67

Expropriation occurs when a government ________.

A)reimburses a foreign company for its assets after taking over the company
B)reimburses a foreign company that has lost facilities due to natural causes
C)refuses to allow its businesses to engage in exporting
D)takes over a foreign operation and provides the seized operation with no reimbursement
E)imports more than it exports

Question 68

The population of Djibouti is approximately 810,179,700.To serve the communication needs of this nation,there is one Internet service provider,two AM radio stations,two FM radio stations,and one television station.There are only 8,000 telephone lines in the whole country.This is a partial description of Djibouti's ________.

A)gross national product (GNP)
B)business cycle
C)economic infrastructure
D)standard of living
E)gross domestic product (GDP)

Question 69

Every society has a set of deeply held beliefs about right and wrong ways to live,which are referred to as ________.

A)demographics
B)social norms
C)cultural dimensions
D)cultural values
E)customs

Question 70

________ are statistics that measure aspects of population,such as size,age,and gender.

A)Demographics
B)Norms
C)Cultural dimensions
D)Standards
E)Mores

Question 71

Kyrgyzstan is a small,poor,mountainous country with a predominantly agricultural economy.Cotton,wool,and meat are the main agricultural products and exports.Fifty-one percent of the population lives in poverty.Kyrgyzstan is an example of a(n)________.

A)BRIC country
B)least developed country (LDC)
C)industrializing country
D)developed country
E)G8 country

Question 72

Through the U.S.Generalized System of Preferences (GSP),developing countries may export goods duty-free to the United States if they ________.

A)demonstrate progress toward protecting the natural environment
B)demonstrate progress toward improving the rights of their workers
C)agree to exempt U.S.imports from local content rules
D)belong to the World Trade Organization (WTO)
E)participate in a reciprocal free trade zone

Question 73

The ________ was established by the Federal Trade Commission in 2003 to allow consumers to limit the number of telemarketing calls they receive.

A)National Do Not Call Registry
B)Child Protection Act
C)Federal Communications Commission
D)Consumer Products Safety Commission Act
E)Robinson-Patman Act

Question 74

In a(n)________ culture,people tend to attach more importance to personal goals than to the needs of the larger community.

A)collectivist
B)individualist
C)democratic
D)demographic
E)sociocultural

Question 75

The ________,a United States regulatory agency,regulates telephone,radio,and television.

A)Consumer Product Safety Commission
B)Environmental Protection Agency
C)Federal Communications Commission
D)Federal Trade Commission
E)Interstate Commerce Commission

Question 76

The ________ environment refers to the characteristics of a society,the people who live in the society,and the culture that reflects the values and beliefs of the society.

A)political and legal
B)sociocultural
C)economic
D)technological
E)natural

Question 77

The management team at Home Help,a consumer products manufacturer,is considering entering several different foreign markets and is in the process of analyzing each potential market's economic environment.Which of the following measures would best help the management team understand the comparative cost of consumer products in each market?

A)gross national product (GNP)
B)the Big Mac Index
C)the per capita gross domestic product (GDP)
D)the standard of living
E)gross domestic product (GDP)

Question 78

In Vin del Mar,Chile,there are a dozen stores specializing in selling the same quality of seafood products on one street.An individual store dare not charge more than the going price without the risk of losing business to the other stores that are selling the fish at a common price.This is an example of what type of market?

A)perfect competition
B)monopolistic competition
C)oligopolistic competition
D)a monopoly
E)an oligopoly

Question 79

Specific rules that dictate what is acceptable or unacceptable within a society are referred to as ________.

A)demographics
B)cultural values
C)cultural dimensions
D)social norms
E)ethnocentric standards

Question 80

The ________,a United States regulatory agency,enforces laws and regulations on foods,drugs,cosmetics,and veterinary products.Marketers of pharmaceuticals must get approval from this agency before introducing products to the market.

A)Food and Drug Administration
B)Environmental Protection Agency
C)Federal Communications Commission
D)Federal Trade Commission
E)Consumer Product Safety Commission