Question 1

Which of the following is a criticism of multinational corporations?

Accepted Answer

Multinationals sometimes support reactionary and oppressive regimes if it is in their best interests to do so.

Question 2

The Victorinox Swiss Army Knife is found all over the world.It is manufactured and marketed similarly to all consumers.Victorinox uses a(n):

Accepted Answer

Global standardization produces uniform products that can be sold the same way all over the world.

Question 3

Apple Inc.has partnerships with wireless carriers in Japan,Spain and a handful of other European countries.Apple Inc works with suppliers and retailers worldwide.This means that Apple is a:

Accepted Answer

Multinational corporations are heavily engaged in international trade beyond exporting and importing.

Question 4

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):

Accepted Answer

Otis Elevators is heavily engaged in international trade beyond exporting and importing.

Question 5

When multinational firms enable individual subsidiaries to compete independently in domestic nations,they are engaged in:

Accepted Answer

A multidomestic strategy is how multinational firms use strategic business units.

Question 6

A soft drink manufacturer who was thinking of investing in a bottling plant in the Czech Republic should know the nation is proud of the fact it is among the world's biggest beer drinkers.Czechs consume an average of one-half liter of beer a day for every man,woman,and child in the country.The _____ environment of this country could very easily prevent the soft drink bottling company from succeeding.

Accepted Answer

Culture influences product preferences.

Question 7

Defeet International creates its apparel in North Carolina and sells it domestically and abroad.The company is in which stage of global business?

Accepted Answer

Defeet is in stage one where they are creating the product in one country,the U.S,and sell to other countries.

Question 8

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

Accepted Answer

A multinational corporation is a company that is heavily engaged in international trade,beyond exporting and importing.

Question 9

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

Accepted Answer

The marketing mix is the keystone of a company's internal environment.

Question 10

Muslim countries are receptive to most Disney products,but they have asked Disney not to include Piglet when it sells its Winnie the Pooh characters 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.

Accepted Answer

Religious beliefs are part of the cultural environment.

Question 11

The Patton Awning company produces tents,tarps,awning,and other canvas products.The firm is in stage one of creating its global business.This means that they:

Accepted Answer

Stage one is where companies operate in one country and sell to other countries.

Question 12

In which stage do multicultural companies operate when they set up foreign subsidiaries to handle sales in one country?

Accepted Answer

Stage two is characterized by a multinational company setting up foreign subsidiaries to handle sales in one country.

Question 13

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

Accepted Answer

This is definition of culture.

Question 14

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):

Accepted Answer

A company that is heavily engaged in global trade and moves resources,goods,services,and skills across national boundaries is called a multinational corporation.

Question 15

Which of the following statements about multinational firms is true?

Accepted Answer

Multinationals can go through up to four stages in their quest to globalize their business.Generally,only high-tech firms ever reach the fourth stage.Multinationals are companies that heavily engage in international trade,beyond exporting and importing.

Question 16

A company that is capital-intensive:

Accepted Answer

A capital-intensive means the company spends more for equipment than for labor and is a criticism of multinational companies because it does need a significant labor force.

Question 17

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

Accepted Answer

Global marketing standardization is the production of uniform products that can be sold the same way all over the world.

Question 18

Suppose three months ago the dollar price of a yen was $0.012.Today the dollar price of one yen is $0.018.If you are in the market for a brand new Honda automobile today,you will find that:

Accepted Answer

If a country's currency depreciates,more of that currency will be needed to buy another country's currency.As the dollar depreciates,the price of foreign goods rise for U.S.residents.

Question 19

Cooley Manufacturing is a multinational company selling plumbing components around the world.This company has progressed to the point that it operates an entire of line of business in several other countries.Which stage of multinational business does this represent?

Accepted Answer

Stage three is characterized by operating an entire line of business in another country.

Question 20

Global marketing standardization:

Accepted Answer

With a global marketing standardization approach,a firm produces standardized products to be sold the same way worldwide.This approach assumes all customers have the same needs and wants.

Quiz 5: Developing a Global Vision