Question 1

FIGURE 7-6 
-According to Figure 7-6 above, points "B" and "C" would most likely be __________ and __________ respectively.
A)exporting; licensing
B)licensing, joint venture
C)joint venture, direct investment
D)exporting, direct investment
E)exporting; joint venture

Accepted Answer

The answer of FIGURE 7-6 
-According to Figure 7-6 above,...

Question 2

A firm's profit potential and control over marketing activities increases as it moves from exporting to direct investment as a globe market-entry strategy.But so does the firm's
A)likelihood of long-term success.
B)financial commitment and risk.
C)vulnerability to political changes and doctrines.
D)need for a more educated workforce.
E)need for a larger workforce.

Accepted Answer

As a firm moves from exporting to direct investment, it typically requires a greater financial commitment and therefore takes on greater risk.

Question 3

An assessment of a country or regional political-regulatory climate includes an analysis of its political stability and __________.
A)ISO 9000 rating
B)stock market performance
C)trade regulations
D)cultural diversity
E)division of subsidiaries

Accepted Answer

A country or regional political-regulatory climate is assessed by analyzing its political stability and trade regulations. The political stability signifies whether a country is politically stable or not, and trade regulations refer to the government policies regarding imports and exports. Therefore, option C is the best choice as it reflects the regulatory climate of a country/region. The other options, such as ISO 9000 rating, stock market performance, cultural diversity, and division of subsidiaries, are not directly related to the political-regulatory climate of a country.

Question 4

Which of the following statements concerning currency exchange rates is most accurate?
A)Fluctuations in exchange rates among the world's currencies are of critical importance in global marketing.
B)Fluctuations in exchange rates among the world's currencies are of minor importance in global marketing.
C)Exchange rate fluctuations are relatively rare, but they usually have serious long-term consequences.
D)Exchange rate fluctuations are almost non-existent due in great part to the Euro.
E)Exchange rate fluctuations affect the financial sector but rarely reach the consumer.

Accepted Answer

Fluctuations in exchange rates among the world's currencies can have a significant impact on the pricing of products and services in global markets, affecting the competitiveness of businesses and influencing consumer behavior. Therefore, understanding and managing currency exchange rates is essential for businesses engaged in global marketing.

Question 5

Chrysler Corporation wanted to sell its Jeeps in Japan.The SUV was priced in U.S.dollars at about $19,000, but when it reached the Japanese car showrooms, its price was over 31,000 Japanese yen, and the Japanese could not afford to buy it.Its price was set without regard for the
A)balance of price.
B)currency exchange rate.
C)reciprocity price.
D)balance of payments.
E)equity exchange factor.

Accepted Answer

The difference in price between the U.S. dollars and Japanese yen suggests that the pricing was not adjusted according to the currency exchange rate, leading to an unaffordable price for the Japanese market.

Question 6

A global market-entry strategy in which a company produces goods in one country and sells them in another country is referred to as __________.
A)exporting
B)facilitating
C)countertrade
D)foreign exchange
E)multi-national marketing

Accepted Answer

Exporting is the global market-entry strategy in which a company produces goods in one country and sells them in another country.

Question 7

direct investment.
A)exporting
B)accreditation
C)multiparty
D)cooperative
E)franchising

Accepted Answer

Direct investment involves the establishment of a physical presence in a foreign country, which is what exporting does not involve.

Question 8

FIGURE 7-6 
-According to Figure 7-6 above, points "A" and "D" would most likely be __________ and __________ respectively.
A)joint venture; licensing
B)licensing; exporting
C)licensing; joint venture
D)direct investment; licensing
E)exporting; direct investment

Accepted Answer

The answer of FIGURE 7-6 
-According to Figure 7-6 above,...

Question 9

FIGURE 7-6 
-According to Figure 7-6 above, points "A" would most likely be __________.
A)joint venture
B)licensing
C)exporting
D)direct investment
E)franchise

Accepted Answer

Point A in the figure indicates that the company is exporting its products to the foreign market.

Question 10

direct investment.
A)macrofinancing
B)microfinancing
C)franchising
D)licensing
E)collateral

Accepted Answer

Direct investment typically refers to a company from one country investing in and owning a controlling stake in a company from another country. Licensing involves allowing another company to use a company's intellectual property or technology, while franchising involves granting the right to use a company's brand and business model in exchange for royalties. Microfinancing typically refers to providing small loans to individuals or businesses in developing countries. Collateral refers to assets that are pledged as security for a loan. Therefore, D (licensing) is the best choice as it is the only option that does not involve a direct investment in a foreign company.

Question 11

When foreign currencies can buy more U.S.dollars, U.S.
A)products are more expensive and worth less to foreign customers.
B)products are more expensive and worth more to foreign customers.
C)products are less expensive and worth more to foreign customers.
D)economists consider it an indicator of an impending long-term economic down swing.
E)American consumers buy in large quantities and stockpile in fear of an impending economic crisis.

Accepted Answer

When foreign currencies can buy more U.S. dollars, it means the exchange rate has increased, making U.S. products less expensive for foreign customers. As a result, U.S. products appear more affordable and valuable in foreign markets, leading to an increase in exports and demand for U.S. goods.

Question 12

FIGURE 7-6 
-According to Figure 7-6 above, points "C" would most likely be __________.
A)exporting
B)joint venture
C)direct investment
D)licensing
E)franchising

Accepted Answer

The answer of FIGURE 7-6 
-According to Figure 7-6 above,...

Question 13

FIGURE 7-6 
-According to Figure 7-6 above, points "B" would most likely be __________.
A)exporting
B)joint venture
C)direct investment
D)franchising
E)licensing

Accepted Answer

The answer of FIGURE 7-6 
-According to Figure 7-6 above,...

Question 14

Fran Wilson Creative Cosmetics attributes its success to a top-quality product, effective advertising, and a novel __________ program.
A)joint venture
B)cooperative agreement
C)franchise operation
D)export-marketing
E)direct investment

Accepted Answer

The answer of Fran Wilson Creative Cosmetics attributes its success...

Question 15

Trade among nations or regions depends on political stability.In recent times, billions of dollars have been lost in the __________ and __________ as a result of internal political strife, terrorism, and war.
A)Austria, Poland
B)France, Spain
C)China, Japan
D)Middle East, Africa
E)Germany, the United Kingdom

Accepted Answer

The Middle East and Africa have both experienced significant political instability, terrorism, and war in recent times, which have impacted trade and led to significant financial losses. The other options listed have not experienced these levels of political instability and conflict, making them less likely choices for the answer.

Question 16

To circumvent competing with Japanese firms through their traditional channel of distribution, Fran Wilson Creative Cosmetics Moodmatcher lip coloring, is sold in which type of retail venue?
A)grocery stores
B)flower shops
C)beauty salons
D)department stores
E)gift stores

Accepted Answer

Fran Wilson Creative Cosmetics Moodmatcher lip coloring is sold in beauty salons to circumvent competing with Japanese firms through their traditional channel of distribution. This allows the product to reach a new target audience and reduces competition.

Question 17

Japanese car safety rules require all automobile replacement parts to be Japanese and not American or European.Japan has some 11,000 trade regulations.This is an example of
A)EU ISO 9000 quality standards.
B)trade barriers.
C)universal codes.
D)binding requirements.
E)"the price of doing business."

Accepted Answer

The requirement of Japanese car safety rules for all automobile replacement parts to be Japanese is a trade barrier, as it restricts imports from American and European manufacturers. Japan's 11,000 trade regulations are also indicative of their protectionist approach towards international trade.

Question 18

direct investment.
A)franchising
B)cooperative
C)multiparty
D)mutual
E)joint venture

Accepted Answer

Joint venture is the only option that involves direct investment as it involves two or more parties forming a new entity and contributing capital and resources towards a common goal. Franchising involves the use of an existing business model and brand, cooperative is a type of organization that is owned and controlled by its members, multiparty typically refers to negotiations or agreements involving multiple parties, and mutual usually refers to investments in mutual funds.

Question 19

The political and regulatory climate for marketing in a country or region of the world means not only identifying the current climate but determining
A)how it conducts its macrofinancing.
B)how its citizens budget their money.
C)how long a favorable or unfavorable climate will last.
D)how the countries stocks are performing on the stock exchange.
E)how its population ranks in size compared to other countries.

Accepted Answer

The political and regulatory climate can change over time, so it's important to not only identify the current climate but also determine how long it is likely to last. This can help inform marketing decisions and strategies. The other options listed are not directly related to the political and regulatory climate for marketing in a country or region of the world.

Question 20

FIGURE 7-6 
-According to Figure 7-6 above, points "D" would most likely be __________.
A)exporting
B)joint venture
C)direct investment
D)franchising
E)licensing

Accepted Answer

Point D indicates a wholly owned subsidiary, which is a form of direct investment where a company sets up a new business in a foreign country and owns 100% of the shares. This is different from exporting, franchising, or licensing, where the parent company does not have complete control over the operations in the foreign market. Joint venture involves collaboration and shared ownership with a local partner, which is also not the case for Point D.

Quiz 7: Understanding and Reaching Global Consumers and Markets

FIGURE 7-6 -According to Figure 7-6 above, points "B" and "C" would most likely be and respectively.

A firm's profit potential and control over marketing activities increases as it moves from exporting to direct investment as a globe market-entry strategy.But so does the firm's

An assessment of a country or regional political-regulatory climate includes an analysis of its political stability and __________.

Which of the following statements concerning currency exchange rates is most accurate?

Chrysler Corporation wanted to sell its Jeeps in Japan.The SUV was priced in U.S.dollars at about $19,000, but when it reached the Japanese car showrooms, its price was over 31,000 Japanese yen, and the Japanese could not afford to buy it.Its price was set without regard for the

A global market-entry strategy in which a company produces goods in one country and sells them in another country is referred to as __________.

direct investment.

FIGURE 7-6 -According to Figure 7-6 above, points "A" and "D" would most likely be and respectively.

FIGURE 7-6 -According to Figure 7-6 above, points "A" would most likely be __________.

direct investment.

When foreign currencies can buy more U.S.dollars, U.S.

FIGURE 7-6 -According to Figure 7-6 above, points "C" would most likely be __________.

FIGURE 7-6 -According to Figure 7-6 above, points "B" would most likely be __________.

Fran Wilson Creative Cosmetics attributes its success to a top-quality product, effective advertising, and a novel __________ program.

Trade among nations or regions depends on political stability.In recent times, billions of dollars have been lost in the and as a result of internal political strife, terrorism, and war.

To circumvent competing with Japanese firms through their traditional channel of distribution, Fran Wilson Creative Cosmetics Moodmatcher lip coloring, is sold in which type of retail venue?

Japanese car safety rules require all automobile replacement parts to be Japanese and not American or European.Japan has some 11,000 trade regulations.This is an example of

direct investment.

The political and regulatory climate for marketing in a country or region of the world means not only identifying the current climate but determining

FIGURE 7-6 -According to Figure 7-6 above, points "D" would most likely be __________.

Quiz 7: Understanding and Reaching Global Consumers and Markets

FIGURE 7-6 -According to Figure 7-6 above, points "B" and "C" would most likely be __________ and __________ respectively.

A firm's profit potential and control over marketing activities increases as it moves from exporting to direct investment as a globe market-entry strategy.But so does the firm's

An assessment of a country or regional political-regulatory climate includes an analysis of its political stability and __________.

Which of the following statements concerning currency exchange rates is most accurate?

Chrysler Corporation wanted to sell its Jeeps in Japan.The SUV was priced in U.S.dollars at about $19,000, but when it reached the Japanese car showrooms, its price was over 31,000 Japanese yen, and the Japanese could not afford to buy it.Its price was set without regard for the

A global market-entry strategy in which a company produces goods in one country and sells them in another country is referred to as __________.

direct investment.

FIGURE 7-6 -According to Figure 7-6 above, points "A" and "D" would most likely be __________ and __________ respectively.

FIGURE 7-6 -According to Figure 7-6 above, points "A" would most likely be __________.

direct investment.

When foreign currencies can buy more U.S.dollars, U.S.

FIGURE 7-6 -According to Figure 7-6 above, points "C" would most likely be __________.

FIGURE 7-6 -According to Figure 7-6 above, points "B" would most likely be __________.

Fran Wilson Creative Cosmetics attributes its success to a top-quality product, effective advertising, and a novel __________ program.

Trade among nations or regions depends on political stability.In recent times, billions of dollars have been lost in the __________ and __________ as a result of internal political strife, terrorism, and war.

To circumvent competing with Japanese firms through their traditional channel of distribution, Fran Wilson Creative Cosmetics Moodmatcher lip coloring, is sold in which type of retail venue?

Japanese car safety rules require all automobile replacement parts to be Japanese and not American or European.Japan has some 11,000 trade regulations.This is an example of

direct investment.

The political and regulatory climate for marketing in a country or region of the world means not only identifying the current climate but determining

FIGURE 7-6 -According to Figure 7-6 above, points "D" would most likely be __________.

FIGURE 7-6 -According to Figure 7-6 above, points "B" and "C" would most likely be and respectively.

FIGURE 7-6 -According to Figure 7-6 above, points "A" and "D" would most likely be and respectively.

Trade among nations or regions depends on political stability.In recent times, billions of dollars have been lost in the and as a result of internal political strife, terrorism, and war.