Question 1

The total market value of all final goods and services produced in a country for a given time period is called:
A) the exchange rate
B) gross domestic product (GDP)
C) the trade balance
D) gross national product (GNP)
E) gross operating surplus (GOS)

Accepted Answer

This is the definition of gross domestic product.

Question 2

In the context of global marketing,product invention can be taken to mean either creating a new product for a market or drastically changing an existing product.

Accepted Answer

Product invention in global marketing can refer to both creating a completely new product for a market or making significant changes to an existing product to better meet the needs and preferences of the target market.

Question 3

The price of one country's currency in terms of another country's currency is called the conversion price.

Accepted Answer

It is called the exchange rate.

Question 4

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 5

All of the following statements about global marketing are true EXCEPT:
A) Marketing to target markets throughout the world has become 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 United States.

Accepted Answer

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

Question 6

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

Global marketing targets markets throughout the world.

Question 7

Apple,Inc.has partnerships with wireless carriers in Japan,Spain,and a handful of other European countries.Apple 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 8

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.

Question 9

Which of the following statements about the impact of international business on the U.S.economy is NOT true?
A) America exports over $1.7 trillion in goods and services each year.
B) Exports represent 13 percent of U.S. GDP.
C) Every U.S. state has realized net employment gains directly attributed to foreign trade.
D) Exports create jobs for over 50 million Americans.
E) The U.S. exports about 20 percent of its industrial production.

Accepted Answer

Exports create jobs for over 10 million Americans.

Question 10

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 11

The primary reason large U.S.companies send U.S.jobs abroad is because labor costs are higher 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 12

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 13

Globalization:
A) relies on strong government regulations to keep down prices
B) promotes economic freedom and increases living standards
C) tends to dry up the flow of foreign capital in less developed countries
D) has made it easier for governments to abuse the freedom and property of their citizens
E) has kept wages low in developing countries around the world

Accepted Answer

Globalization expands economic freedom,spurs competition,and raises the productivity and living standards of people in countries that open themselves up to the global marketplace.

Question 14

Suppose a Chinese firm makes computer chips at $4.00 per chip but sells the chips for $2.00 in American markets.American producers of computer chips cannot supply chips at the low rates that the Chinese firm is supplying them.The Chinese firm is engaging in dumping.

Accepted Answer

The Chinese firm is selling their computer chips in American markets at a price lower than their cost of production, which is considered as dumping.

Question 15

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 16

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 17

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 18

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 19

H.J.Heinz,the ketchup company,gets over half of its revenue from international sales.This shows that:
A) U.S. citizens are using less ketchup.
B) their market share should increase.
C) Heinz needs to abandon the U.S. market.
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

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

Accepted Answer

Brick-and-mortar stores have different operational requirements, such as physical space, staffing, and inventory management, that don't always translate well to the online marketplace. E-commerce retailers often have more flexibility in terms of pricing, inventory selection, and customer service.

Quiz 9: Developing a Global Vision

The total market value of all final goods and services produced in a country for a given time period is called:

In the context of global marketing,product invention can be taken to mean either creating a new product for a market or drastically changing an existing product.

The price of one country's currency in terms of another country's currency is called the conversion price.

Which of the following statements about multinational firms is true?

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:

Apple,Inc.has partnerships with wireless carriers in Japan,Spain,and a handful of other European countries.Apple works with suppliers and retailers worldwide.This means that Apple is a:

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

Which of the following statements about the impact of international business on the U.S.economy is NOT true?

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

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

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) :

Globalization:

Suppose a Chinese firm makes computer chips at $4.00 per chip but sells the chips for $2.00 in American markets.American producers of computer chips cannot supply chips at the low rates that the Chinese firm is supplying them.The Chinese firm is engaging in dumping.

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.

Many people fear world trade because it:

H.J.Heinz,the ketchup company,gets over half of its revenue from international sales.This shows that:

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