Question 1

When Grand Metropolitan, a British company, purchased U.S.-based Pillsbury Co.in order to expand its product line and the market for its existing consumer products, it was an example of a(n):
A)direct foreign investment
B)limited partnership
C)international corporation
D)international cooperative
E)cooperative cartel

Accepted Answer

This is an example of direct foreign investment, where a company invests in a foreign company to expand its market presence and product line.

Question 2

French language purists on both sides of the Atlantic are on the warpath.Fed up with the growing prevalence of English on the Web, a French state institution founded in the 17th century to maintain the purity of the language unveiled a dictionary of newly-coined French equivalents to English Internet terms in 2000.This is symptomatic of the difficulties in doing business in France because in many situations, the business must be conducted in French.Therefore, it is easy to assume that _____ is extremely important in France.
A)unionism
B)federalism
C)nationalism
D)multinationalism
E)domestic loyalty

Accepted Answer

The emphasis on maintaining the purity of the French language and the resistance to the prevalence of English terms on the Web reflect a form of nationalism, where there is a strong identification with and support for the culture and interests of one's nation, in this case, France.

Question 3

A country's _____ is the set of beliefs, values, and social norms shared by members of a society that determines what is socially acceptable.
A)regulations
B)traditions
C)laws
D)culture
E)standards

Accepted Answer

Culture encompasses the beliefs, values, and social norms shared by members of a society, guiding what is considered socially acceptable.

Question 4

AT&T entered into a _____ with Compagnie General d'Electricite, a French company.The French company brings its patents on digital telephone switches, and AT&T provides the marketing know-how to the relationship.
A)international partnership
B)joint venture
C)joint cooperative
D)oligopoly
E)international cartel

Accepted Answer

A joint venture is a business arrangement in which two or more parties agree to pool their resources for the purpose of accomplishing a specific task. In this case, AT&T and Compagnie General d'Electricite are combining their respective strengths (patents on digital telephone switches and marketing know-how) to work together, which fits the definition of a joint venture.

Question 5

_____ is the sense of national consciousness that boosts the culture and interests of one country over those of all other countries.
A)Unionism
B)Nationalism
C)Federalism
D)Multinationalism
E)Domestic loyalty

Accepted Answer

Nationalism is the ideology that emphasizes the interests, culture, and values of one's nation above those of others, fostering a sense of national pride and unity.

Question 6

CoolBrands International has entered an agreement with Binney & Smith to create a line of frozen novelties based on the Crayola brand, including pops, bars, sandwiches, cups, cones, sundaes and shakes.CoolBrands will pay Binney & Smith a royalty for the right to use the Crayola trademark.This is an example of:
A)contract manufacturing
B)joint venture
C)cooperative agreement
D)a licensing agreement
E)limited partnership

Accepted Answer

This is an example of a licensing agreement, where CoolBrands International pays Binney & Smith a royalty for the right to use the Crayola trademark to create and sell a line of frozen novelties.

Question 7

The Japanese automobile manufacturer Mazda produces the Premacy SUV in Haikou, China at a plant it built in the Chinese province.Mazda is using _____ to engage in global trading.
A)direct foreign investment
B)limited partnership
C)international corporation
D)international cooperative
E)cooperative cartel

Accepted Answer

Direct foreign investment refers to a company investing in physical assets or subsidiary businesses in a foreign country. Mazda building a plant in China to produce vehicles is an example of direct foreign investment, as they are investing in the physical assets required to manufacture their products overseas.

Question 8

An enterprise in which two or more firms or investors (including governments) share ownership of a business and its property rights is called a(n):
A)cooperative
B)international partnership
C)joint venture
D)cartel
E)limited partnership

Accepted Answer

A joint venture is a business arrangement where two or more parties agree to pool their resources for the purpose of accomplishing a specific task. This task can be a new project or any other business activity. Each of the participants in a joint venture has ownership in the entity and agrees on how it will be managed.

Question 9

Active ownership of a foreign company, with direct investors having either a controlling or a large minority interest in the firm, is called a(n):
A)direct foreign investment
B)limited partnership
C)international corporation
D)international cooperative
E)cooperative cartel

Accepted Answer

Direct foreign investment involves acquiring a controlling interest or a significant minority interest in a foreign company, allowing the investor to have a significant influence over the management and operations of the company.

Question 10

Spanish customers view toothpaste as a cosmetic while consumers in the Netherlands view it as a necessary part of daily hygiene and use three times as much their Spanish counterparts.This example of _____ shows how important it is for marketers to understand.
A)local content laws
B)cultural differences
C)nationalistic standards
D)expropriation laws
E)trade regulations

Accepted Answer

This example highlights the importance of understanding cultural differences, as they can significantly impact consumer behavior and preferences, such as the perception and usage of products like toothpaste.

Question 11

Pierre Cardin gives technical advice on textile manufacturing to China and in exchange receives silk and cashmere.This is an example of a(n):
A)joint venture
B)countertrade
C)contra-deal
D)counteroffer
E)international partnership

Accepted Answer

This is an example of countertrade, where goods and services are exchanged instead of currency. In this case, technical advice is exchanged for silk and cashmere.

Question 12

Which of the following is NOT part of a nation's infrastructure?
A)its postal systems
B)its Internet sites
C)its mountain ranges
D)its railroads
E)its interstate roads

Accepted Answer

Infrastructure refers to the fundamental facilities and systems serving a country, city, or area, including the services and facilities necessary for its economy to function. This typically includes transportation systems (like railroads and interstate roads), communication systems (such as postal systems and internet sites), and utilities. Natural features like mountain ranges, however, are not considered part of a nation's infrastructure as they are not man-made structures or services designed to support economic activities.

Question 13

Bribery translates to kuroi kiri (black mist) in Japan, schmiergeld (grease money), and baksheesh (tip or gratuity) in the Middle East.This differing way of looking at bribes is descriptive of differences in:
A)local laws
B)culture
C)trade regulations
D)nationalistic standards
E)free trade zones

Accepted Answer

The differing terms and perceptions of bribery across various regions illustrate differences in culture, as these terms reflect the unique societal attitudes and norms regarding the practice of giving or receiving bribes.

Question 14

Capital Radio PLC, the United Kingdom's biggest commercial radio firm announced in 2002 that it would cooperate with Walt Disney Co.to create a radio network for children under the age of 16.The company will broadcast to a potential audience of 25 million under the name Capital Disney.This new radio network will be created as the result of:
A)international partnership
B)joint venture
C)joint cooperative
D)oligopoly
E)international cartel

Accepted Answer

A joint venture is a business arrangement in which two or more parties agree to pool their resources for the purpose of accomplishing a specific task. In this case, Capital Radio PLC and Walt Disney Co. are collaborating to create a new radio network, which fits the definition of a joint venture.

Question 15

A domestic firm may decide to contract for the production of its goods by an established foreign manufacturer.Such private-label manufacturing by a foreign company is called:
A)contract manufacturing
B)franchising
C)duplicate labeling
D)international labeling
E)private label contracting

Accepted Answer

Contract manufacturing is when a company contracts with another company, often in a different country, to produce its goods. This allows the domestic firm to take advantage of the foreign manufacturer's established production capabilities.

Question 16

The _____ of Algeria includes 3,973 km of railroads, 104,000 km of roads, and 54 paved airports.It also has only five telephones for every 100 citizens and only two Internet service providers.
A)oligopoly
B)natural advantage
C)infrastructure
D)ethnocentrism
E)cultural environment

Accepted Answer

The correct term for the physical and organizational structures and facilities (e.g., buildings, roads, power supplies) needed for the operation of a society or enterprise is "infrastructure."

Question 17

U.S.plane manufacturer McDonnell-Douglas has authorized Mitsubishi Heavy Industries, a Japanese company, to use its trademarks, patents, and other proprietary knowledge to manufacture F-15 fighter planes.Mitsubishi Heavy Industries pays McDonnell-Douglas.This is an example of:
A)licensing
B)contract manufacturing
C)importing
D)franchising
E)exporting

Accepted Answer

This scenario is an example of licensing, where McDonnell-Douglas allows Mitsubishi Heavy Industries to use its intellectual property in exchange for payment, enabling the latter to manufacture F-15 fighter planes.

Question 18

The Sara Lee Company sells the Hanes brand of hosiery in the United States.The manufacturer of this hosiery brand in Great Britain sells it under the brand name of Pretty Polly.The Sara Lee Company is using _____ to broaden its global marketing base without investing in overseas plants and equipment.
A)contract manufacturing
B)joint venture
C)cooperative agreement
D)a licensing agreement
E)limited partnership

Accepted Answer

The answer of The Sara Lee Company sells the Hanes...

Question 19

In a complicated negotiated, Minmetals in China agreed to purchase at least 24,000 tons of copper cathode for $35 million from Pasar in the Philippines.According to the terms of the sale, Pasar will provide at least $12 million worth of coal to a Chinese power company that will provide the electricity needed to operate Minmetals.This is an example of a(n):
A)joint venture
B)countertrade
C)contra-deal
D)counteroffer
E)international partnership

Accepted Answer

This is an example of countertrade, where goods are exchanged partially or fully in payment for other goods rather than for cash, as seen in the agreement involving copper cathode and coal.

Question 20

A _____ is a form of trading arrangement in which part or all of the payment for purchased goods or services is in the form of other goods and services.
A)counteroffer
B)counteraction
C)contra-deal
D)nonfinancial exchange
E)countertrade

Accepted Answer

Countertrade is a trading arrangement where goods and services are exchanged for other goods and services instead of using cash.

Quiz 3: Competing in the Global Marketplace

When Grand Metropolitan, a British company, purchased U.S.-based Pillsbury Co.in order to expand its product line and the market for its existing consumer products, it was an example of a(n) :

A country's _____ is the set of beliefs, values, and social norms shared by members of a society that determines what is socially acceptable.

AT&T entered into a _____ with Compagnie General d'Electricite, a French company.The French company brings its patents on digital telephone switches, and AT&T provides the marketing know-how to the relationship.

_____ is the sense of national consciousness that boosts the culture and interests of one country over those of all other countries.

The Japanese automobile manufacturer Mazda produces the Premacy SUV in Haikou, China at a plant it built in the Chinese province.Mazda is using _____ to engage in global trading.

An enterprise in which two or more firms or investors (including governments) share ownership of a business and its property rights is called a(n) :

Active ownership of a foreign company, with direct investors having either a controlling or a large minority interest in the firm, is called a(n) :

Spanish customers view toothpaste as a cosmetic while consumers in the Netherlands view it as a necessary part of daily hygiene and use three times as much their Spanish counterparts.This example of _____ shows how important it is for marketers to understand.

Pierre Cardin gives technical advice on textile manufacturing to China and in exchange receives silk and cashmere.This is an example of a(n) :

Which of the following is NOT part of a nation's infrastructure?

Bribery translates to kuroi kiri (black mist) in Japan, schmiergeld (grease money) , and baksheesh (tip or gratuity) in the Middle East.This differing way of looking at bribes is descriptive of differences in:

A domestic firm may decide to contract for the production of its goods by an established foreign manufacturer.Such private-label manufacturing by a foreign company is called:

The _____ of Algeria includes 3,973 km of railroads, 104,000 km of roads, and 54 paved airports.It also has only five telephones for every 100 citizens and only two Internet service providers.

U.S.plane manufacturer McDonnell-Douglas has authorized Mitsubishi Heavy Industries, a Japanese company, to use its trademarks, patents, and other proprietary knowledge to manufacture F-15 fighter planes.Mitsubishi Heavy Industries pays McDonnell-Douglas.This is an example of:

A _____ is a form of trading arrangement in which part or all of the payment for purchased goods or services is in the form of other goods and services.