Deck 8: Global Marketing

Question 1

A nation's basic system of transportation networks,communications systems,and energy facilities is referred to as its infrastructure.

Answer 1

True

Question 2

Nearly four of every five dollars in the United State's gross domestic product comes from services such as banking,entertainment,business and technical services,retailing,and communications.

Answer 2

True

Question 3

The Russian currency is considered a hard currency.

Answer 3

False

Question 4

Walmart is the world's largest private employer and the largest retailer.

Question 5

The United States is the world's largest exporter of goods and services followed by China.

Question 6

Global marketing is rapidly becoming a necessity for most U.S.companies.

Question 7

The labor conditions in a country are part of its political environment.

Question 8

The ISO 9000 series sets standards for operations that minimize harm to the environment.

Question 9

In the United States it is mandatory for firms to inform the customers if the food is grown using genetically modified organisms.

Question 10

Nearly 90 percent of Americans today work in the service sector.

Question 11

The ability to adapt products to local preferences and culture is the key to success in foreign markets.

Question 12

Currencies that are considered to be soft currencies can be readily converted to other currencies such as the dollar,euro,or yen.

Question 13

The term "exchange rate" refers to the price of one nation's currency in terms of another country's currency.

Question 14

The Export Trading Company Act of 1982 seeks to make it easier for foreign buyers to connect with U.S.exporters.

Question 15

U.S.imports mainly include crude oil,computers,consumer electronics and passenger cars.

Question 16

Manufactured goods account for the lion's share of U.S.production output today.

Question 17

The United States leads the world in retailing and service exports.

Question 18

Globalization helps firms to gain benefits such as new insights into consumer behavior and alternative distribution strategies.

Question 19

A nation's size,per capita income,and stage of economic development determine its prospects as a host for international business expansion.

Question 20

The Foreign Corrupt Practices Act makes it illegal to bribe a foreign official in an attempt to solicit new or repeat sales abroad.

Question 21

A customs union seeks to reconcile all government regulations affecting trade.

Question 22

The two largest trading partners of the United States are Canada and Mexico.

Question 23

Revenue tariffs are designed to raise funds for the importing government.

Question 24

Experts are of the opinion that CAFTA's economic impact is likely to be relatively large compared with NAFTA.

Question 25

Governments use import quotas to protect domestic industry and employment and preserve foreign exchange.

Question 26

Administrative barriers are more subtle than tariffs.

Question 27

The recently ratified Treaty of Lisbon enables the EU to enter into international agreements as a political entity.

Question 28

The NAFTA has succeeded in achieving political integration among its member nations: the United States,Canada,and Mexico.

Question 29

Establishing a free trade area is the simplest way to achieve multinational economic integration.

Question 30

The largest operating multinational economic community in the world is the FTAA,linking 34 countries and 800 million people in the Western Hemisphere.

Question 31

The General Agreement on Tariffs and Trade included services under international trading rules.

Question 32

Embargoes impose a complete ban on the import of specific products from a particular country.

Question 33

Exchange control regulates international trade by controlling access to foreign currencies.

Question 34

Quotas on imports and export subsidies are different forms of tariffs.

Question 35

Revenue tariffs are usually higher than protective tariffs.

Question 36

The WTO makes binding decisions in mediating disputes and reduces trade barriers.

Question 37

The CAFTA-DR is a trade agreement among the United States,Central American nations,and the Dominican Republic.

Question 38

The World Trade Organization oversees GATT agreements,serves as a forum for trade negotiations,and mediates trade disputes.

Question 39

Dumping is the practice of selling a large volume of product into a foreign market at prices lower than its own domestic market.

Question 40

A noticeable trend toward multinational economic integration has developed since the end of World War II.

Question 41

The most common reasons cited by marketers for going global include new customers in emerging markets and reduced trade barriers.

Question 42

A simple and inexpensive way for first-time exporters to reach foreign customers is to sell their products to an export trading company.

Question 43

Firms often use more than one strategy to enter into foreign markets.

Question 44

A manufacturing firm retains more control over the export process when it deals with an export trading company rather than dealing with an export management company.

Question 45

Subcontracting is a type of contractual agreement that assigns the production of goods or services to local or smaller firms.

Question 46

Franchising is a low risk way to enter a foreign market as it offers a proven concept.

Question 47

An offset agreement combines a small firm with a major international company where the small firm essentially serves as a subcontractor on a large foreign project.

Question 48

The customs taxes are uniform among all member nations of the European Union.

Question 49

The three basic strategies for entering foreign markets are import/export,contractual agreements,and international direct investment.

Question 50

International direct investment does not provide a competitive advantage because of its high risk potential and high involvement characteristics.

Question 51

Foreign licensing agreements are valid for a specified time period after which they need to be revised or renewed.

Question 52

Contractual agreements are less flexible compared to exporting strategies.

Question 53

Acquiring an existing firm in a country where the company wants to do business is a form of international direct investment.

Question 54

Manufacturers control marketing and distribution of their products while selling them through an export-trading company.

Question 55

Licensing is an attractive entry strategy for small firms as it does not involve capital outlays.

Question 56

Subcontracting with a local company provides protection from import duties.

Question 57

An importer is a firm that sells goods manufactured domestically in foreign markets.

Question 58

An export trading company provides the first-time exporter with expertise in locating foreign buyers and ensuring that its goods meet local labeling and testing laws.

Question 59

A franchisee receives the right to sell the franchiser's products and to use the franchiser's name as well as a variety of marketing,management,and other services.

Question 60

Licensing is advantageous compared to exporting as it provides access to local partner's distribution channels and also protection from legal barriers.

Question 61

A multidomestic marketing strategy can be used by a firm in all of its domestic and foreign markets without any modifications.

Question 62

A major drawback to a global marketing strategy is its high cost of implementation.

Question 63

Many marketing experts believe that most products require multidomestic marketing strategies to give them a realistic global marketing appeal.

Question 64

Modifying the control panel of a washing machine to accommodate for those cultures that read from right to left would be considered a form of product invention.

Question 65

Foreign marketers regard America as an inviting target because of its large population and high levels of discretionary income.

Question 66

Outboard motors that are sold in the United States primarily as recreational products may be sold in a foreign country as basic transportation equipment.Such a practice is an example of product adaptation.

Question 67

The Organization of Petroleum Exporting Countries (OPEC)is a collective export organization.

Question 68

A company that changes its product's package size,price,and promotional message to meet the local market's taste is using a straight extension marketing strategy.

Question 69

A multidomestic marketing approach brings the advantage of economies of scale to production and marketing activities.

Question 70

Countertrading can be utilized by a country as a way to control its balance-of-trade problems.

Question 71

The product invention strategy helps a firm take advantage of unique foreign market opportunities.

Question 72

Companies often adapt their pricing strategy from one foreign market to another,and modify pricing when market conditions change.

Question 73

Pizza Hut franchises stores in areas with Arab and Indian populations.To accommodate dietary differences,the traditional American recipes are modified.Consequently,the advertising,packaging,and promotional message will change.Marketers refer to these changes as dual adaptation.

Question 74

Forming a joint venture is the best way to enter into foreign markets that are regarded as developing economies.

Question 75

A successful implementation of a straight extension strategy creates universal recognition of a product for consumers from country to country.

Question 76

In a countertrade,products of one country are exchanged for products of another instead of cash.

Question 77

A global marketing strategy works well for products with strong,universal appeal and for high-tech brands and luxury products.

Question 78

Use of straight extension strategy as part of global marketing strategy permits economies of scale in production and marketing.

Question 79

A multinational corporation is a firm with significant operations and marketing activities outside its home country.

Question 80

Multinationals often employ huge foreign workforces relative to their American staffs.