Question 1

Poor or emerging economies are unattractive markets for many kinds of goods.

Accepted Answer

This statement is false. While it may be challenging to market higher-priced luxury goods or products that require a high level of technological infrastructure in poor or emerging economies, there are still many types of goods that can be attractive to these markets. For example, basic necessities such as food, clothing, and shelter are always in demand, as are affordable consumer goods such as basic electronics, small appliances, and personal hygiene products. Additionally, there may be niche markets for luxury goods in some emerging economies as their economies grow and consumer purchasing power increases.

Question 2

The "bottom of the economic pyramid" has become an attractive target for many companies.

Accepted Answer

Many companies see the bottom of the economic pyramid, which consists of the world's poorest people, as an untapped market with huge potential for growth and profitability. This has led to an increased focus on developing products and services specifically for this demographic.

Question 3

Briefly explain why the European Union could be considered a threat to U.S. marketers that want to do business in Europe.

Accepted Answer

The answer of Briefly explain why the European Union could...

Question 4

As more developed markets stagnate and become increasingly competitive, many marketers are now targeting growth opportunities in emerging markets.

Accepted Answer

This statement is true. Many companies are expanding their operations and targeting growth in emerging markets as they offer potential for new customers and increased sales.

Question 5

Many studies reveal that instead of "Americanizing" the world's cultures, the cultural exchange between America and other countries goes two ways. Give two examples of how America has been influenced culturally by foreign products or services.

Accepted Answer

The answer of Many studies reveal that instead of "Americanizing"...

Question 6

Compare and contrast a tariff and a quota.

Accepted Answer

The answer of Compare and contrast a tariff and a...

Question 7

Describe the purpose, roles, and achievements of GATT and the WTO.

Accepted Answer

The answer of Describe the purpose, roles, and achievements of...

Question 8

In a subsistence economy, fast growth in manufacturing results in rapid overall economic growth.

Accepted Answer

In a subsistence economy, where people produce and consume for their own needs, the goal is not economic growth, but rather survival. Therefore, fast growth in manufacturing is not necessarily an indicator of overall economic growth.

Question 9

Briefly explain why economic communities are formed.

Accepted Answer

The answer of Briefly explain why economic communities are formed....

Question 10

Industrial economies are major importers of manufactured goods, services, and investment funds.

Accepted Answer

Industrial economies are typically major exporters of manufactured goods and services, as they have advanced production capabilities. They may import raw materials and investment funds, but they are not primarily importers of manufactured goods.

Question 11

Companies that go global confront several major risks. Describe three of these risks.

Accepted Answer

The answer of Companies that go global confront several major...

Question 12

Describe the political-legal factors that a company should consider before deciding to conduct business in a foreign country.

Accepted Answer

The answer of Describe the political-legal factors that a company...

Question 13

Why is it important for companies to understand cultural differences and nuances before entering a foreign country's market? Give two examples of cultural differences that would be important for a company to know.

Accepted Answer

The answer of Why is it important for companies to...

Question 14

Compare the three different types of industrial structures.

Accepted Answer

The answer of Compare the three different types of industrial...

Question 15

Business norms vary from country to country. A company will likely be more successful in expanding internationally if it understands cultural traditions, preferences, and behaviors in the target countries.

Accepted Answer

Understanding cultural norms is crucial for successful international expansion as it helps to avoid cultural misunderstandings and adapt the business to the local market.

Question 16

Describe the factors that might draw a company into the international arena.

Accepted Answer

The answer of Describe the factors that might draw a...

Question 17

Discuss the international marketing objectives and policies a company should try to define before going abroad.

Accepted Answer

The answer of Discuss the international marketing objectives and policies...

Question 18

The exchange of U.S. wheat for Russian vodka would be an example of barter.

Accepted Answer

Barter is the exchange of goods or services without the use of money. In this scenario, U.S. wheat is being exchanged for Russian vodka, making it a barter transaction.

Question 19

Explain why some critics worry that American multinationals are causing countries around the globe to lose their individual identities. Give an example of the "Americanizing" of the world's cultures.

Accepted Answer

The answer of Explain why some critics worry that American...

Question 20

Name two of the five indicators of market potential and provide an example of each.

Accepted Answer

The answer of Name two of the five indicators of...

Quiz 19: The Global Marketplace