Question 1

International trade does not always involve cash. Sometimes companies accept all or part of the payment for goods or services in the form of other goods or services. What is this known as?
A)export trading
B)underground economy
C)countertrade
D)domestic barter

Accepted Answer

This is known as countertrade, where companies exchange goods and services instead of using cash for payments. Countertrade can take various forms such as barter, offset, buyback, and switch trading.

Question 2

Having a global vision means management recognizes and reacts to international marketing opportunities, is aware of threats from foreign competitors in all markets, and effectively utilizes international distribution networks.

Accepted Answer

This statement accurately describes what it means to have a global vision in management.

Question 3

Folk-guitar manufacturer, Play-Guitars sells its guitars in its home country for at least $1000.00. To get a hold of the Canadian market, Play-Guitars sold its products for $500.00. What is this known as?
A)export re-engineering
B)crossdocking
C)boycotting
D)dumping

Accepted Answer

This is known as dumping, which is when a company sells its products in a foreign market for a lower price than what it sells for in its home market. This can be seen as a predatory pricing strategy, used to gain market share and undercut local competition.

Question 4

Which of the following is true of the pricing component of the global marketing mix?
A)It's the same in domestic and foreign markets.
B)It's fairly simplistic due to the strength of the US dollar abroad.
C)It's the easiest element to implement successfully.
D)It's a complex matter due to tariffs, exchange rates, and government regulations.

Accepted Answer

Pricing is a complex matter in global marketing due to many factors such as tariffs, exchange rates, and government regulations that vary by country. It requires deep understanding and analysis of the market conditions and consumer behavior in each country to effectively price a product or service. Therefore, option D is the correct choice. Options A and B are incorrect because pricing strategies must be adjusted to meet the unique conditions and demands of each foreign market. Option C is also incorrect because the implementation of global pricing strategies requires careful planning and decision-making.

Question 5

In a newspaper release, Corning Inc. announced it had received a favourable ruling from China's Ministry of Commerce on allegations that it was selling its fibre more cheaply in China than in other countries. What was Corning falsely accused of?
A)dumping
B)offloading
C)boycotting
D)repatriating

Accepted Answer

The situation in the newspaper release suggests that Corning Inc. was accused of "dumping," which refers to the practice of selling goods in a foreign market at a lower price than in the domestic market, which can harm local industries and markets. The favourable ruling suggests that the allegations were proven to be false or unfounded.

Question 6

A major benefit of globalization is its creation of jobs and wealth.

Accepted Answer

Globalization has opened up new markets and opportunities for businesses to expand, leading to the creation of jobs and growth in wealth in many countries around the world. However, it is important to note that the distribution of these benefits may not always be equal or equitable among all individuals and communities.

Question 7

Canada is the only country that actively engages in global marketing.

Accepted Answer

Canada is not the only country that actively engages in global marketing. Many countries are involved in global marketing to reach a wider audience and expand their businesses globally.

Question 8

The Canadian magazine industry accused US magazine publishers selling the magazines in Canada at a lower price than in the United States. What is the name for this practice?
A)dumping
B)offloading
C)boycotting
D)repatriating

Accepted Answer

Dumping is the practice of selling products in foreign markets at lower prices than their domestic market, which can harm the local industry of the country where the products are being sold. In this case, US magazine publishers are accused of selling their magazines in Canada at a lower price than in the United States, which is hurting the Canadian magazine industry.

Question 9

Malaysia supplied India with palm oil (from six state-owned companies) worth $121 million in exchange for a contract awarded to the Indian Railway Construction International Company. It will lay 31.5 kilometres of tracks in the southern Malaysian state of Johor. Which of the following will give India palm oil and Malaysia new rail lines?
A)export trade
B)crossdock plan
C)countertrade
D)domestic barter

Accepted Answer

Countertrade involves the exchange of goods or services for other goods or services instead of cash. In this case, Malaysia is supplying palm oil to India in exchange for the construction of new rail lines in Johor. This type of trade is beneficial for both countries as it promotes trade relationships and helps them overcome any currency or financial barriers.

Question 10

To enter the Thailand market, Toyota developed the Sohana model. This vehicle is specifically designed to withstand the driving habits and weather conditions in Thailand. It was designed to meet the vehicular needs of the average Thai driver. Which of the marketing mix strategies did Toyota use?
A)countertrading
B)product invention
C)global market standardization
D)product licensing

Accepted Answer

Toyota utilized the product invention strategy by developing the Sohana model specifically for the Thailand market, taking into consideration the unique needs and preferences of the local consumers.

Question 11

According to an article in the Financial Times, bringing Coca-Cola to the Chinese market presented a special challenge to the soft-drink manufacturer. This challenge most likely had to do with which element of the marketing mix?
A)production
B)direct marketing
C)distribution
D)pricing

Accepted Answer

The challenge of bringing Coca-Cola to the Chinese market most likely had to do with distribution, as the distribution channels and structures in China are different than in other markets. In addition, the vast size of China and its complex distribution network presented a unique challenge for Coca-Cola.

Question 12

Procter & Gamble's Vidal Sassoon shampoo smells the same worldwide, but the amount of scent used varies from country to country. This is an example of which type of marketing mix strategy?
A)product trading
B)product invention
C)product adaptation
D)product licensing

Accepted Answer

This is an example of product adaptation, as the product (shampoo) is being adapted to fit the preferences of consumers in different countries by varying the amount of scent used.

Question 13

Goodyear Tire and Rubber Company provided China with the materials and training needed to establish a printing plant in exchange for finished labels that Goodyear attaches to its tires. What is this an example of?
A)exchange control
B)price control
C)exchange adaptation
D)countertrade

Accepted Answer

This is an example of countertrade, which involves the exchange of goods or services instead of currency. In this case, Goodyear provided materials and training to China in exchange for finished labels to attach to its tires.

Question 14

The European Union accused South Korea of selling ships at a loss in an attempt to push its European rivals out of the market. What was South Korea accused of?
A)dumping
B)illegal importing
C)countertrading
D)fiscal impropriety

Accepted Answer

South Korea was accused of "dumping," which is the practice of selling goods at a lower price than their actual value in order to gain an unfair advantage in the market and push out rivals.

Question 15

Mattel lost millions of dollars on its international marketing campaign for Holiday Barbie dolls because the dolls were being sold for $24.00, and this figure was expressed in US dollars without regard for how it would translate into foreign currencies. The dolls were too expensive for most international markets. Which of Mattel's strategies was faulty?
A)pricing
B)countertrading
C)diversification
D)product

Accepted Answer

Mattel's pricing strategy was faulty. They did not consider how the price would translate into foreign currencies, making the dolls too expensive for most international markets.

Question 16

Once marketing managers have determined a global product and promotion strategy, they can select the remainder of the marketing mix. Why does entry into many developing nations present special pricing problems?
A)the rate of capital accumulation exceeds the rate of population growth
B)exchange rates fluctuate
C)price discrimination
D)lack of mass purchasing power

Accepted Answer

Many developing nations may lack mass purchasing power or have lower disposable incomes, which makes pricing a challenge for companies looking to enter these markets. Companies may need to adjust their pricing strategies to cater to these markets without compromising on profitability.

Question 17

McDonald's used expertise developed in Brazil's inflationary environment to deal with the economic environment in Russia when it exhibited similar inflationary tendencies. Which of McDonald's strategies would this experience have most strongly influenced?
A)pricing
B)promotion
C)distribution
D)product adaptation

Accepted Answer

McDonald's would have applied pricing strategies developed in Brazil's inflationary environment in dealing with Russia's similar inflationary tendencies. This would involve adjusting prices frequently to keep up with inflation rates, maintaining value for customers, and avoiding excess inventory.

Question 18

Currency markets operate under a system in which the prices of different currencies move up or down based on the demand for and supply of each currency. What is this practice called?
A)countertrading
B)floating exchange rates
C)variable purchasing power
D)flexible monetary policies

Accepted Answer

This practice is called floating exchange rates, as the exchange rates between currencies are not fixed but instead fluctuate based on market demand and supply. Countertrading refers to the practice of exchanging goods or services instead of using currency, variable purchasing power refers to the concept that the value of money and purchasing power can fluctuate over time, and flexible monetary policies refer to a country's ability to adjust their monetary policies in response to changes in the economy.

Question 19

Which of the following statements best describes the use of the Internet in global marketing?
A)Global consumers are much more interested in buying quality than finding a bargain when they shop on the Internet.
B)The new Internet economy is being restrained by the old bricks-and-mortar rules, regulations, and habits.
C)Businesses are not shopping at Internet websites.
D)Buyers at Internet sites avoid trade restrictions.

Accepted Answer

The statement "The new Internet economy is being restrained by the old bricks-and-mortar rules, regulations, and habits" best describes the use of the Internet in global marketing. This means that traditional rules and regulations are hindering the growth of the online market, and that companies are trying to find ways to overcome these obstacles. The other options are either incorrect or do not provide a clear explanation of the use of the Internet in global marketing.

Question 20

Japanese consumers have experienced more than a decade of recession and deflationary pressures. What would this condition most likely impact for Japanese consumers?
A)their purchasing power
B)their salary elasticity
C)their disposable income
D)their government benefits

Accepted Answer

Deflation and recession typically increase the purchasing power of consumers as prices fall, allowing them to buy more with the same amount of money.

Quiz 4: Developing a Global Vision

International trade does not always involve cash. Sometimes companies accept all or part of the payment for goods or services in the form of other goods or services. What is this known as?

Having a global vision means management recognizes and reacts to international marketing opportunities, is aware of threats from foreign competitors in all markets, and effectively utilizes international distribution networks.

Folk-guitar manufacturer, Play-Guitars sells its guitars in its home country for at least $1000.00. To get a hold of the Canadian market, Play-Guitars sold its products for $500.00. What is this known as?

Which of the following is true of the pricing component of the global marketing mix?

In a newspaper release, Corning Inc. announced it had received a favourable ruling from China's Ministry of Commerce on allegations that it was selling its fibre more cheaply in China than in other countries. What was Corning falsely accused of?

A major benefit of globalization is its creation of jobs and wealth.

Canada is the only country that actively engages in global marketing.

The Canadian magazine industry accused US magazine publishers selling the magazines in Canada at a lower price than in the United States. What is the name for this practice?

To enter the Thailand market, Toyota developed the Sohana model. This vehicle is specifically designed to withstand the driving habits and weather conditions in Thailand. It was designed to meet the vehicular needs of the average Thai driver. Which of the marketing mix strategies did Toyota use?

According to an article in the Financial Times, bringing Coca-Cola to the Chinese market presented a special challenge to the soft-drink manufacturer. This challenge most likely had to do with which element of the marketing mix?

Procter & Gamble's Vidal Sassoon shampoo smells the same worldwide, but the amount of scent used varies from country to country. This is an example of which type of marketing mix strategy?

Goodyear Tire and Rubber Company provided China with the materials and training needed to establish a printing plant in exchange for finished labels that Goodyear attaches to its tires. What is this an example of?

The European Union accused South Korea of selling ships at a loss in an attempt to push its European rivals out of the market. What was South Korea accused of?

Once marketing managers have determined a global product and promotion strategy, they can select the remainder of the marketing mix. Why does entry into many developing nations present special pricing problems?

McDonald's used expertise developed in Brazil's inflationary environment to deal with the economic environment in Russia when it exhibited similar inflationary tendencies. Which of McDonald's strategies would this experience have most strongly influenced?

Currency markets operate under a system in which the prices of different currencies move up or down based on the demand for and supply of each currency. What is this practice called?

Which of the following statements best describes the use of the Internet in global marketing?

Japanese consumers have experienced more than a decade of recession and deflationary pressures. What would this condition most likely impact for Japanese consumers?