Question 1

International marketers must take account of the fact that floating _______ rates (rates at which one currency buys another) can have a significant impact on the profitability of a company's international operations.

Accepted Answer

Floating exchange rates are rates at which one currency buys another, and they can have a significant impact on the profitability of a company's international operations. This is because fluctuations in exchange rates can affect the cost of imports and exports, as well as the value of profits made in foreign currency. Therefore, international marketers must be aware of the risks associated with floating exchange rates and develop strategies to manage them effectively.

Question 2

Taxation is an economic factor that impacts on consumers' levels of _______ income (the amount of money available after essentials) and thereby influences the purchase of goods and services.

Accepted Answer

Taxation affects consumers' discretionary income, which is the income left after essential expenses are deducted. The more taxes a consumer has to pay, the less discretionary income they have to spend on goods and services.

Question 3

Which of the following types of product is more difficult to standardize due to local preferences?

Accepted Answer

Food is the type of product that is more difficult to standardize due to local preferences because different cultures have different taste preferences, ingredients, and cooking methods. This requires food to be adapted to local tastes and preferences, making it difficult to standardize.

Question 4

Standardization appears to depend mainly upon which of the following?

Accepted Answer

Standardization is mainly dependent on product type, as different products have different standardization requirements based on their nature and purpose. Competitors' offerings, manufacturing costs, and newness of the product may influence standardization to some extent, but the product type remains the primary factor.

Question 5

What is "parallel importing"?

Accepted Answer

Parallel importing, also known as grey market importing, is the practice of purchasing genuine products from a distributor in one country and then exporting and reselling them in another country. This is done to take advantage of price differentials between different regions. The products are typically sold for a lower price in the country of purchase and then re-imported into a country where the manufacturer or distributor has set a higher price. This practice is technically legal, but it may infringe on intellectual property rights and can damage the reputation of the brand. Choice B accurately describes parallel importing.

Question 6

How many consumers are in the European Union?

Accepted Answer

The European Union has a population of around 513 million people, of which around 320 million are consumers.

Question 7

Inflation is an economic factor that measures the cost of living in an economy. Rapid rises in inflation affect marketing as they affect the prices of goods and services and also _______ the future value of savings, investments and pensions.

Accepted Answer

Rapid rises in inflation reduce the future value of savings, investments and pensions.

Question 8

NAFTA stands for:

Accepted Answer

NAFTA stands for North American Free Trade Agreement, not Association. The other options, North American Financial Trade Agreement and North American Financial Tariff Association, do not accurately reflect the scope of the agreement as it primarily deals with free trade rather than solely financial matters or tariffs.

Question 9

When considering the social environment, two major aspects need to be examined: demographic changes and _______ differences that exist between nations.

Accepted Answer

Cultural differences are a major factor in the social environment, as they shape people's beliefs, values, and behaviors. These differences can affect consumer behavior, business practices, and communication strategies, among other things. Demographic changes, such as aging populations or shifts in gender and ethnic makeup, are also important to consider, as they can have significant implications for businesses and society as a whole. However, they do not relate directly to the differences between nations, which are primarily shaped by their unique cultural backgrounds. Therefore, option C is the best choice.

Question 10

Standardization of "FMCG's" is more difficult due to differences in local tastes. "FMCG" stands for which of the following?

Accepted Answer

FMCG stands for Fast Moving Consumer Goods, which refer to products that are sold quickly and at a relatively low cost. Standardizing these products across different regions can be difficult because local tastes and preferences can vary widely.

Question 11

Which of the following factors has promoted the realization of pan- European marketing?

Accepted Answer

The introduction of the euro has facilitated cross-border transactions and reduced exchange rate uncertainties, increasing the feasibility of pan-European marketing. Increasing mobility of consumers has also led to greater exposure to other cultures and markets, increasing demand for pan-European marketing. Additionally, increasing information flow across borders has made it easier for companies to gather market research and communicate with customers in multiple countries, further promoting pan-European marketing.

Question 12

Which of the following is not a key social force that has implications for marketing?

Accepted Answer

Increasing levels of globalization is not a social force but an economic and political force that impacts marketing among other areas. Social forces typically refer to societal trends and changes that influence consumer behaviors and attitudes, such as demographic changes, social responsibility, ethics, and consumer movements.

Question 13

Businesses often try to influence political processes through the use of _______. This involves businesses attempting to influence decisions made by officials in government, most often legislators or regulatory agencies.

Accepted Answer

Lobbying is the act of attempting to influence political processes by businesses. It involves direct communication or indirect influence through third-party individuals or organizations, with the aim of affecting the decisions taken by officials in government. Positioning and targeting refer to marketing strategies, and begging is not an appropriate term for businesses attempting to influence political processes.

Question 14

Which company is perceived as the world's most ethical company?

Accepted Answer

ABB Asea Brown Boveri Ltd. is perceived as the world's most ethical company.

Question 15

How many countries have as their common currency, the euro?

Accepted Answer

As of my last update in 2023, 23 countries use the euro as their official currency. This includes the 20 members of the Eurozone, which are EU countries, and 3 microstates that have formal agreements to use the euro.

Question 16

Which country is not a member of the European Union?

Accepted Answer

Norway is not a member of the European Union, while the United Kingdom, Finland, and Greece are all members.

Question 17

Which of the following factors has hindered the realization of pan- European marketing in the EU?

Accepted Answer

The answer of Which of the following factors has hindered...

Question 18

Which of the following is an emerging implication of the development of the "Single European Market"?

Accepted Answer

The development of the "Single European Market" implies the emergence of pan-European marketing, which involves the development of marketing strategies that transcend national boundaries within Europe. This reflects the growing integration of the European economy and the harmonization of regulations and business practices across the region. While globalization, international marketing, and global marketing may also be relevant to the Single European Market, they do not capture the unique characteristics of pan-European marketing that arise from the specific context of the European Union.

Question 19

Many decisions may be influenced by political legal forces which determine the rules by which business is conducted. Political forces describe the close connections that politicians and senior business people often have, sometimes known as '_______ capitalism'

Accepted Answer

Crony capitalism refers to the practice of using political connections or influence to gain advantages, such as favorable policies or contracts, in business dealings.

Question 20

ASEAN stands for:

Accepted Answer

ASEAN stands for the Association of South East Asian Nations, a regional intergovernmental organization made up of ten countries in Southeast Asia.

Quiz 2: The Global Marketing Environment