Question 1

In terms of the global marketplace, there are three primary types of companies: international firms, __________ firms, and transnational firms.

Accepted Answer

Multinational firms have operations in multiple countries, but their operations in each country are largely autonomous from each other. International firms tend to focus on exporting their products or services to other countries, while transnational firms operate as a cohesive global network, with operations that are interconnected across borders. Conglomerate, large-scale, and cosmopolitan are not commonly used terms to describe types of companies in the global marketplace.

Question 2

In terms of the global marketplace, there are three primary types of companies: international firms, multinational firms, and __________ firms.

Accepted Answer

Transnational firms are companies that operate across multiple countries, integrating and coordinating operations without a strong national identity, making them distinct from international and multinational firms.

Question 3

In terms of the global marketplace, there are three primary types of companies: international firms, multinational firms, and transnational firms. The key factor that distinguishes one from another is

Accepted Answer

The key factor that distinguishes international, multinational, and transnational firms is the firm's orientation towards and strategy for global markets and marketing. International firms primarily focus on exporting their products and services to other countries, while multinational firms have operations in multiple countries and adapt their marketing strategies to fit the cultural norms and preferences of specific regions. Transnational firms go beyond just adapting to regional differences and have a truly global perspective, often utilizing a decentralized organizational structure to allow for greater flexibility and adaptation to local markets. Financial capacity and size can certainly play a role in a company's global success, but it is ultimately their orientation and strategy that determine their place in the global marketplace.

Question 4

To eliminate the need to continually monitor currency exchange rates, __________ of the countries in the European Union (EU) have adopted a common currency called the euro.

Accepted Answer

The answer of To eliminate the need to continually monitor...

Question 5

A firm that views the world as consisting of unique parts and markets to each part differently is referred to as

Accepted Answer

A multinational firm customizes its marketing strategies to fit the unique needs and preferences of different countries or regions, treating each as a distinct market.

Question 6

Pan-European marketing strategies are possible because

Accepted Answer

The European Union has fewer regulatory restrictions on transportation, advertising, and promotion, making it easier to implement pan-European marketing strategies. This allows companies to reach a larger audience with greater efficiency.

Question 7

A(n) __________ firm engages in trade and marketing in different countries as an extension of the marketing strategy in its home country.

Accepted Answer

Key term definition-international firm.

Question 8

The EU has benefited firms in its member nations because

Accepted Answer

The EU eliminates the need for firms to market their products and services on a nation-by-nation basis because it creates a single market with standardized regulations and tariffs. As a result, firms can sell their products and services throughout the entire EU with minimal additional cost or effort. This has significantly benefited firms in EU member nations by increasing their customer base and lowering their transaction costs.

Question 9

The North American Free Trade Agreement was designed to encourage free trade between

Accepted Answer

The North American Free Trade Agreement (NAFTA) was designed to encourage free trade between the United States, Canada, and Mexico.

Question 10

In terms of the global marketplace, there are three primary types of companies: __________ firms, multinational firms, and transnational firms.

Accepted Answer

The three primary types of companies in the global marketplace are International firms, Multinational firms, and Transnational firms. Therefore, option D is the correct answer. The other options are not commonly used to describe the types of companies in the global marketplace.

Question 11

The administrative, marketing, and manufacturing operations that many international firms, multinational firms, and transnational firms have around the world are often called

Accepted Answer

Key term definition-divisions or subsidiaries.

Question 12

When firms originate, produce, and market their products and services worldwide, it is referred to as

Accepted Answer

Key term definition-global competition.

Question 13

Mars, America's second-largest candy company, began doing business in Russia in the late 1980s. The Snickers bar is one of the top-selling candies in Russia and is marketed in much the same way as it is in the United States. What type of global company is Mars?

Accepted Answer

The answer of Mars, America's second-largest candy company, began doing...

Question 14

Global competition exists when

Accepted Answer

Global competition exists when firms originate, produce, and market their products and services worldwide, competing with each other in different countries and markets.

Question 15

Coca-Cola has operations in all but three nations in the world and Pepsi-Cola is now available in more than 160 countries and territories, making the soft drink industry an example of

Accepted Answer

The fact that Coca-Cola and Pepsi-Cola have operations and are available in a vast majority of countries around the world demonstrates the existence of global competition within the soft drink industry.

Question 16

Generally speaking, __________ firm markets its existing products and services in other countries the same way it does in its home country.

Accepted Answer

An international firm markets its existing products and services in other countries the same way it does in its home country. A meganational firm typically adapts its marketing strategies to the local market, while a multinational firm may have some adaptations but still maintains a standardized approach across markets. A transnational firm takes an integrated global approach, often developing new products and services specifically for different markets. An intranational firm operates only within its home country.

Question 17

The European Union (EU) has been beneficial to electronic commerce because it is no longer necessary to

Accepted Answer

The European Union has eliminated the need for continually monitoring currency exchange rates among participating nations, making it easier for electronic commerce.

Question 18

The EU has benefited its member nations because firms do not need to market their products and services on a nation-by-nation basis; most tariffs that affect pricing practices have been removed; and

Accepted Answer

The EU has eliminated many regulatory restrictions on transportation, advertising, and promotion, making it easier for firms to market their products and services across member nations.

Answer: A
 The EU has established a legally binding code of economic conduct, which helps create a stable and predictable economic environment for member nations and for firms conducting business within the EU.

Answer: E
 The passage does not provide evidence to support the claim that most companies within the EU are engaging in strategic global partnerships.

Answer: B
 The passage does not mention any immunity against world recessions, therefore this option is not the best choice.

Answer: D
 The passage does not mention any common language advantage among EU consumers, therefore this option is not the best choice.

Question 19

CAFTA-DR, a comprehensive free trade agreement between Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, Nicaragua, and

Accepted Answer

CAFTA-DR is a free trade agreement between the seven Central American countries mentioned and the United States.

Question 20

To eliminate the need to continually monitor currency exchange rates, 16 of the countries in the European Union (EU) have adopted a common currency, which is called the

Accepted Answer

The common currency adopted by 16 countries in the European Union is called the euro, making it the best choice. The pound, franc, mark, and dollar are all individual currencies used by specific countries, and are not shared among multiple nations in a common currency system.

Quiz 7: Understanding and Reaching Global Consumers and Markets