Question 1

Which of the following statements about multinational firms is true?
A) Multinationals typically do not change their methods of reaching their global markets if they are successful with their initial strategy.
B) Multinationals are defined as companies heavily engaged in exporting and importing.
C) All multinationals must enter the fourth stage of globalization before they are fully internationalized.
D) Multinationals often develop their global businesses in stages.
E) The five stages of globalization closely mirror the five stages of the product life cycle.

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 2

The primary reason large U.S.companies send U.S.jobs abroad is because labor costs are higher here in the United States.They are engaging in _____.
A) outsourcing
B) global trade
C) multinational employee searches
D) employee export
E) global employment

Accepted Answer

Job outsourcing is sending U.S.jobs abroad.

Question 3

Defeet International creates its apparel in North Carolina and sells it domestically and abroad.The company is in which stage of global business?
A) Stage one
B) Stage two
C) Stage three
D) Stage four
E) Stage five

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 4

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):
A) global enterprise
B) global trader
C) cultural marketer
D) exporting company
E) multinational corporation

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 5

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 _____.
A) multinational corporation
B) worldwide competitor
C) marketplace competitor
D) domestic corporation
E) foreign investor

Accepted Answer

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

Question 6

The form of global organization that provides the highest potential for return on investment as well as the highest level of risk is contract manufacturing.

Accepted Answer

Direct foreign investment carries the highest risk level and the greatest potential return on investment.

Question 7

Many people fear world trade because it:
A) will inevitably lead to inflation
B) will cause living standards to increase at a slower rate
C) causes some people to lose their jobs as production shifts abroad
D) has brought entire nations out of poverty
E) has increased per capita income for some countries

Accepted Answer

Global competition and cheap imports help keep inflation down,and world trade has caused the standards of living for many countries to increase at a faster rate.The other options describe advantages.

Question 8

Sawyer Components manufactures high-cost,customized roller parts for paper mills and is expanding into China because of the opportunity for significant growth in this developing country. The owner uses effective global strategies and is aware of threats from foreign competitors. This illustrates that the owner has a global:
A) advantage
B) imperative
C) vision
D) outsource
E) introspection

Accepted Answer

A global vision is recognizing and reacting to international marketing opportunities.

Question 9

Claiborne Inc.produces leather accessories for motorcycle riders and is in stage one of creating their global business.This means that they:
A) operate in one country and sell to others
B) have set up a foreign subsidiary
C) operate an entire line of business in another country
D) have top executives and core corporate functions in different countries
E) they operate in every country in the world

Accepted Answer

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

Question 10

U.S.-based Procter & Gamble and Italian-based Fater agreed to produce and market diapers for the European market.This is an example of a joint franchise.

Accepted Answer

This is a an example of a joint venture.

Question 11

Forty million jobs may be shipped out of the country in the next decade or two according to Alan Blinder,former Federal Reserve Chairman.The key factor in this phenomenon is _____.
A) cultural changes
B) the adoption of English worldwide
C) communications technology
D) competition
E) more global flights

Accepted Answer

Communications technology makes it possible to outsource so many jobs abroad.

Question 12

The rules,regulations,and habits used for bricks-and-mortar stores tend to restrain and limit the success of those retailers engaged in e-commerce.

Accepted Answer

Brick-and-mortar stores have established rules, regulations, and habits that can limit the success of e-commerce retailers who do not follow the same practices. For example, the need for physical space and a large inventory may hinder the ability to offer a wide range of products online, and traditional pricing models may not be as effective in the digital marketplace. Additionally, the regulations and laws that govern physical stores may not be applicable or effective for e-commerce businesses.

Question 13

A(n)_____ is a company that is heavily engaged in global trade and moves its resources,goods,services,and skills across national boundaries.
A) international facilitator
B) global trader
C) multinational corporation
D) exporting company
E) international merchant

Accepted Answer

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

Question 14

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):
A) cultural marketer
B) global trader
C) multinational corporation
D) exporting company
E) global enterprise

Accepted Answer

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

Question 15

If a country's currency appreciates,more of that currency will be needed to buy another country's currency.

Accepted Answer

If a country's currency appreciates,less of that currency is needed to buy another country's currency.

Question 16

All of the following statements about global marketing are true EXCEPT:
A) Marketing to target markets throughout the world has become an imperative for business.
B) Often a U.S. firm's toughest domestic competition comes from foreign companies.
C) Marketing managers must develop a global vision not only to recognize and react to international marketing opportunities but also to remain competitive at home.
D) Adopting a global vision can be lucrative for a company, and global marketing can offset weak domestic performance.
E) Foreign competitors have not gained significant market share in the U.S.

Accepted Answer

Many U.S.businesses have lost significant market share to imported products.

Question 17

Basketball is played nearly everywhere in the world and is an easily understood sport.The National Basketball Association (NBA)finals reached more than 600 million televisions in 195 countries.From this information,you should be able to infer that the NBA is:
A) developing international selling schemes
B) implementing standard international marketing
C) implementing global marketing standardization
D) supplementing its foreign vision
E) practicing global marketing

Accepted Answer

The fact that the NBA finals reached more than 600 million televisions in 195 countries indicates that the NBA is practicing global marketing, which involves a standardized marketing approach across multiple countries and regions. This suggests that the NBA is focusing on building its brand globally and reaching a wide audience, rather than tailoring its marketing efforts to specific regions or countries.

Question 18

Individuals and organizations utilizing a global vision to effectively market goods and services across the world are engaged in:
A) international selling schemes
B) borderless commerce
C) global marketing standardization
D) global logistics
E) global marketing

Accepted Answer

Global marketing targets markets throughout the world.

Question 19

Gillette gets about two-thirds of its revenue from its international divisions.This shows that:
A) U.S. citizens are shaving less
B) their market share should increase
C) more men and women need to shave
D) sales need to be increased domestically
E) adopting a global vision can pay off

Accepted Answer

Adopting a global vision can be very lucrative to a company.

Question 20

Global marketing research is not any more difficult than domestic marketing research.

Accepted Answer

Global marketing research is conducted in vastly different environments and can be very difficult in developing countries.

Quiz 5: Developing a Global Vision

Which of the following statements about multinational firms is true?

The primary reason large U.S.companies send U.S.jobs abroad is because labor costs are higher here in the United States.They are engaging in _____.

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

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) :

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 _____.

The form of global organization that provides the highest potential for return on investment as well as the highest level of risk is contract manufacturing.

Many people fear world trade because it:

Claiborne Inc.produces leather accessories for motorcycle riders and is in stage one of creating their global business.This means that they:

U.S.-based Procter & Gamble and Italian-based Fater agreed to produce and market diapers for the European market.This is an example of a joint franchise.

Forty million jobs may be shipped out of the country in the next decade or two according to Alan Blinder,former Federal Reserve Chairman.The key factor in this phenomenon is _____.

The rules,regulations,and habits used for bricks-and-mortar stores tend to restrain and limit the success of those retailers engaged in e-commerce.

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

If a country's currency appreciates,more of that currency will be needed to buy another country's currency.

All of the following statements about global marketing are true EXCEPT:

Basketball is played nearly everywhere in the world and is an easily understood sport.The National Basketball Association (NBA) finals reached more than 600 million televisions in 195 countries.From this information,you should be able to infer that the NBA is:

Individuals and organizations utilizing a global vision to effectively market goods and services across the world are engaged in:

Gillette gets about two-thirds of its revenue from its international divisions.This shows that:

Global marketing research is not any more difficult than domestic marketing research.