Question 1

The strategy being developed by the construction firm to market its products is known as a:

Accepted Answer

The answer of The strategy being developed by the construction...

Question 2

A manufacturing firm is trying to determine the market potential for its product in a country by measuring the relative level of imports and exports.This analysis is employed to evaluate the:

Accepted Answer

Measuring the relative level of imports and exports can provide insight into the general economic environment of a country, which is crucial to evaluating the potential market for a product. Other factors such as market size, population growth rate, socio-cultural factors, technology and infrastructure capabilities, and consumer buying power may also be important factors to consider, but none of them directly relate to measuring imports and exports.

Question 3

The primary purpose of IMF is to reduce poverty through low-interest loans and other programs.

Accepted Answer

The primary purpose of the International Monetary Fund (IMF) is to ensure the stability of the international monetary system by providing financial assistance and advice to member countries, not specifically to reduce poverty.

Question 4

The evaluation of which of the following economic factors helps firms determine how to deliver products to particular locations?

Accepted Answer

Market size and population growth rate help firms understand the demand and potential customer base in particular locations, which is crucial for determining how to deliver products effectively.

Question 5

The globalization of production is also known as offshoring.

Accepted Answer

Offshoring is a form of globalization of production where companies move production to other countries to reduce costs or access different markets.

Question 6

Which of the following influence consumer buying behaviour and the marketing mix that companies develop for their overseas markets?

Accepted Answer

The answer of Which of the following influence consumer buying...

Question 7

A group's refusal to deal commercially with some organization to protest against its policies is called a(n):

Accepted Answer

A boycott is a group's refusal to deal commercially with some organization to protest against its policies. Tariff is a tax on imported or exported goods, quota is a limit on the quantity of a product that can be imported or exported, embargo is a ban on trade with a particular country, and exchange control is a government policy that regulates the exchange rate of its currency.

Question 8

A trade deficit results when a country exports more goods than it imports.

Accepted Answer

A trade deficit occurs when a country imports more goods and services than it exports.

Question 9

Exchange control refers to:

Accepted Answer

Exchange control refers to the regulation of a country's currency exchange rate, which involves managing the flow of foreign currencies and the exchange rate to stabilize the national economy.

Question 10

Firms measure a foreign country's market potential by using the human development index.This method allows firms to determine the:

Accepted Answer

The Human Development Index (HDI) is a composite measure of life expectancy, education, and per capita income indicators, which are used to rank countries into four tiers of human development. It provides insights into lifestyle elements that drive consumption levels of goods and services by assessing the overall well-being and capabilities of a country's population, rather than just economic or financial measures.

Question 11

Which of the following are intended to make imported goods more expensive in order to protect a country's domestic industry from foreign competition?

Accepted Answer

Tariffs are taxes imposed on imported goods, making them more expensive and thus protecting domestic industries from foreign competition.

Question 12

NAFTA is limited only to trade-related issues, such as tariffs and quotas, among Canada, Mexico, and the United States.

Accepted Answer

NAFTA is an agreement that covers trade-related issues, such as tariffs and quotas, among Canada, Mexico, and the United States.

Question 13

Firms engaging in franchising have limited control over the market operations in the foreign country.

Accepted Answer

Franchising involves granting the right to use a company's brand name, products, and processes to independent businesses in a foreign country. While the franchisor provides support and training to the franchisees, they have limited control over the market operations of these businesses, as they are independently owned and operated.

Question 14

Indirect exporting offers greater profits to the exporting firm, as it carries the least risk.

Accepted Answer

Indirect exporting may offer lower profits to the exporting firm as compared to direct exporting, as the firm has to share its profits with intermediaries such as agents or distributors. However, indirect exporting may carry less risk as the exporting firm may not have to bear the costs and risks of setting up a foreign distribution network or dealing with foreign regulations and customs procedures.

Question 15

Which of the following designates the quantity of a product that can be brought into a country during a specified time period?

Accepted Answer

A quota is a restriction that limits the quantity of a product that can be imported into a country during a specific time period.

Question 16

An embargo prohibits trading with a certain country or trading in specific goods by other signatory countries.

Accepted Answer

An embargo is a government order that restricts commerce or exchange with a specified country or the exchange of specific goods, often for political or economic reasons.

Question 17

A trade agreement is a protectionist policy as it is designed to protect a country's domestic industry from foreign competition.

Accepted Answer

A trade agreement is a liberalization policy as it aims to reduce barriers to trade between countries and increase competition, which can benefit consumers and businesses. While some industries may face increased competition from foreign goods or services, overall trade agreements are intended to promote economic growth and job creation through increased trade and investment.

Question 18

The policies aimed at encouraging global trade and marketing are referred to as protectionist policies.

Accepted Answer

Protectionist policies are actually policies aimed at restricting or limiting global trade and marketing, often through tariffs or trade barriers, in order to protect domestic industries and jobs. The opposite of protectionist policies are free trade policies, which seek to promote and facilitate global trade and marketing.

Question 19

When a country offers machinery in exchange for finished products from an importing country, the countries are engaging in countertrade.

Accepted Answer

Countertrade is a reciprocal form of international trade where goods or services are exchanged for other goods or services rather than for hard currency.

Question 20

Which of the following is not a protectionist policy?

Accepted Answer

A trade agreement is not a protectionist policy because it promotes free trade, not restricts it.

Quiz 16: Marketing in the Global Environment Global Marketing