Question 1

Standards for registration and certification of a manufacturer's quality management and quality assurance system are referred to as__________ standards.
A) UN 2012
B) NAICS
C) NAFTA
D) ISO 9000
E) ISO 14000

Accepted Answer

ISO 9000 standards provide guidelines for quality management and quality assurance systems of an organization. These standards are recognized internationally and are often used as a requirement for doing business with government agencies and large private corporations.

Question 2

firm's profit potential and control over marketing activities __________ as it moves from exporting to direct investment as a global market-entry strategy.
A) becomes more stable
B) increases
C) levels off
D) decreases
E) becomes more unpredictable

Accepted Answer

As a firm moves from exporting to direct investment as a global market-entry strategy, it gains more control over marketing activities and is able to adapt to local market conditions better. This increased control and adaptation potential can lead to higher profits, hence the firm's profit potential increases.

Question 3

Figure 7-5
-According to Figure 7-5 above,point "B" would most likely be __________.
A) exporting
B) joint venture
C) direct investment
D) franchising
E) licensing

Accepted Answer

The answer of  Figure 7-5
-According to Figure 7-5 above,point...

Question 4

Figure 7-5
-According to Figure 7-5 above,point "A" would most likely be __________.
A) joint venture
B) licensing
C) exporting
D) direct investment
E) franchise

Accepted Answer

The answer of  Figure 7-5
-According to Figure 7-5 above,point...

Question 5

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

Accepted Answer

The Middle East and Africa have been plagued by internal political strife, terrorism, and war, resulting in the loss of billions of dollars in trade.

Question 6

PRS group maintains a website that can be used to determine
A) changing demographic and psychographic data for each country in the registry.
B) a country's political risk ratings using multiple databases of country-specific information.
C) the tariffs of each country and their relative effect on product/services sales.
D) the rankings of American products relative to domestic equivalents in each country.
E) changing social trends within different segments of the economy.

Accepted Answer

The website maintained by PRS group is primarily used to determine a country's political risk ratings using multiple databases of country-specific information. While the website may contain some data related to demographics, psychographics, tariffs or social trends, these are not the main focus of PRS group's services.

Question 7

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

Accepted Answer

The political and regulatory climate can often be unpredictable and subject to change, so it is important to determine how long a favorable or unfavorable climate can be expected to last. This allows marketers to make informed decisions about their strategies and investments in the country or region. Macrofinancing, citizen budgets, stock performance, and population size may provide useful information, but do not directly address the impact of the political and regulatory climate on marketing.

Question 8

firm's profit potential and control over marketing activities increases as it moves from exporting to direct investment as a global 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, its financial commitment and risk also increase. This is because direct investment requires a larger investment of resources and capital compared to exporting, which typically involves lower levels of financial investment. Therefore, firms must carefully consider the risks associated with direct investment before committing resources to this strategy.

Question 9

Figure 7-5
-According to Figure 7-5 above,point "C" would most likely be __________.
A) exporting
B) joint venture
C) direct investment
D) licensing
E) franchising

Accepted Answer

The answer of  Figure 7-5
-According to Figure 7-5 above,point...

Question 10

Japanese car safety rules require all automobile replacement parts to be Japanese and EU nations have 10,000 rules that specify how goods are to be made and marketed.These are examples of
A) ISO 9000 standards.
B) trade barriers.
C) universal codes.
D) binding requirements.
E) "the price of doing business."

Accepted Answer

These examples demonstrate trade barriers, which are restrictions put in place to limit or control the flow of goods and services between countries. The requirement for Japanese replacement parts in Japan and the numerous rules in EU nations serve as barriers to foreign manufacturers attempting to enter these markets.

Question 11

Figure 7-5
-According to Figure 7-5 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 7-5
-According to Figure 7-5 above,points...

Question 12

a company has decided to enter the global marketplace,it must select a means of market entry.Four general options exist: (1)exporting; (2)licensing; (3)joint venture; and (4)__________.
A) franchising
B) shared
C) combined
D) cooperative
E) direct investment

Accepted Answer

Direct investment is the best choice for a company entering the global marketplace as it allows for greater control and long-term profitability. This involves establishing a physical presence in the foreign market through ownership or partnership with a local business. This option requires a greater investment of resources, but also offers the greatest potential for success in the long run.

Question 13

Figure 7-5
-According to Figure 7-5 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 7-5
-According to Figure 7-5 above,points...

Question 14

assessment of a country's or region's 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) currency exchange rates

Accepted Answer

A country's or region's political-regulatory climate includes an analysis of its political stability and trade regulations. The ISO 9000 rating relates to quality management systems and is not directly linked to political-regulatory climate. Stock market performance and currency exchange rates can be influenced by political-regulatory factors, but they are not comprehensive indicators of political-regulatory climate. Cultural diversity is also an important factor, but it is not directly related to political-regulatory climate.

Question 15

a company has decided to enter the global marketplace,it must select a means of market entry.Four general options exist: (1)__________; (2)licensing; (3)joint venture; and (4)direct investment.
A) exporting
B) accreditation
C) multiparty
D) cooperative
E) franchising

Accepted Answer

Exporting is a common method of entering the global marketplace, alongside licensing, joint ventures, and direct investment.

Question 16

Chrysler Corporation wanted to sell its Jeeps in Japan.The car 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 price of the Jeep being set in U.S. dollars without taking into account the currency exchange rate resulted in it being too expensive for Japanese consumers to afford. Therefore, the correct answer is B - currency exchange rate.

Question 17

a company has decided to enter the global marketplace,it must select a means of market entry.Four general options exist: (1)exporting; (2)__________; (3)joint venture; and (4)direct investment.
A) macrofinancing
B) microfinancing
C) franchising
D) licensing
E) collateral

Accepted Answer

Licensing is a common method of market entry where a company allows another company to use its brand, patent, or technology in exchange for a fee or royalty.

Question 18

a company has decided to enter the global marketplace,it must select a means of market entry.Four general options exist: (1)exporting; (2)licensing; (3)__________; and (4)direct investment.
A) franchising
B) cooperative
C) multiparty
D) mutual
E) joint venture

Accepted Answer

A joint venture is a common method of entering a foreign market, where a company partners with a local firm to share resources, risks, and profits.

Question 19

Figure 7-5
-According to Figure 7-5 above,point "D" would most likely be __________.
A) exporting
B) joint venture
C) direct investment
D) franchising
E) licensing

Accepted Answer

Point "D" represents direct investment, where a company invests in and owns a foreign subsidiary. This is typically the most involved and complex form of international business activity, making it the most appropriate choice out of the options given.

Question 20

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) direct investment
C) countertrade
D) licensing
E) multinational marketing

Accepted Answer

Exporting involves producing goods in one country and selling them in another country. Direct investment involves investing in facilities to produce and/or sell goods in a foreign market. Countertrade involves exchanging goods and services instead of using currency for payment. Licensing involves granting rights to use intellectual property to another company. Multinational marketing involves creating marketing strategies that cater to multiple countries and cultures.

Quiz 7: Understanding and Reaching Global Consumers and Markets

Standards for registration and certification of a manufacturer's quality management and quality assurance system are referred to as__________ standards.

firm's profit potential and control over marketing activities __________ as it moves from exporting to direct investment as a global market-entry strategy.

Figure 7-5 -According to Figure 7-5 above,point "B" would most likely be __________.

Figure 7-5 -According to Figure 7-5 above,point "A" would most likely be __________.

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

PRS group maintains a website that can be used to determine

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

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

Figure 7-5 -According to Figure 7-5 above,point "C" would most likely be __________.

Japanese car safety rules require all automobile replacement parts to be Japanese and EU nations have 10,000 rules that specify how goods are to be made and marketed.These are examples of

Figure 7-5 -According to Figure 7-5 above,points "A" and "D" would most likely be and respectively.

a company has decided to enter the global marketplace,it must select a means of market entry.Four general options exist: (1) exporting; (2) licensing; (3) joint venture; and (4) __________.

Figure 7-5 -According to Figure 7-5 above,points "B" and "C" would most likely be and respectively.

assessment of a country's or region's political-regulatory climate includes an analysis of its political stability and __________.

a company has decided to enter the global marketplace,it must select a means of market entry.Four general options exist: (1) __________; (2) licensing; (3) joint venture; and (4) direct investment.

Chrysler Corporation wanted to sell its Jeeps in Japan.The car 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 company has decided to enter the global marketplace,it must select a means of market entry.Four general options exist: (1) exporting; (2) __________; (3) joint venture; and (4) direct investment.

a company has decided to enter the global marketplace,it must select a means of market entry.Four general options exist: (1) exporting; (2) licensing; (3) __________; and (4) direct investment.

Figure 7-5 -According to Figure 7-5 above,point "D" would most likely be __________.

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

Quiz 7: Understanding and Reaching Global Consumers and Markets

Standards for registration and certification of a manufacturer's quality management and quality assurance system are referred to as__________ standards.

firm's profit potential and control over marketing activities __________ as it moves from exporting to direct investment as a global market-entry strategy.

Figure 7-5 -According to Figure 7-5 above,point "B" would most likely be __________.

Figure 7-5 -According to Figure 7-5 above,point "A" would most likely be __________.

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

PRS group maintains a website that can be used to determine

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

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

Figure 7-5 -According to Figure 7-5 above,point "C" would most likely be __________.

Japanese car safety rules require all automobile replacement parts to be Japanese and EU nations have 10,000 rules that specify how goods are to be made and marketed.These are examples of

Figure 7-5 -According to Figure 7-5 above,points "A" and "D" would most likely be __________ and __________ respectively.

a company has decided to enter the global marketplace,it must select a means of market entry.Four general options exist: (1) exporting; (2) licensing; (3) joint venture; and (4) __________.

Figure 7-5 -According to Figure 7-5 above,points "B" and "C" would most likely be __________ and __________ respectively.

assessment of a country's or region's political-regulatory climate includes an analysis of its political stability and __________.

a company has decided to enter the global marketplace,it must select a means of market entry.Four general options exist: (1) __________; (2) licensing; (3) joint venture; and (4) direct investment.

Chrysler Corporation wanted to sell its Jeeps in Japan.The car 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 company has decided to enter the global marketplace,it must select a means of market entry.Four general options exist: (1) exporting; (2) __________; (3) joint venture; and (4) direct investment.

a company has decided to enter the global marketplace,it must select a means of market entry.Four general options exist: (1) exporting; (2) licensing; (3) __________; and (4) direct investment.

Figure 7-5 -According to Figure 7-5 above,point "D" would most likely be __________.

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

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

Figure 7-5 -According to Figure 7-5 above,points "A" and "D" would most likely be and respectively.

Figure 7-5 -According to Figure 7-5 above,points "B" and "C" would most likely be and respectively.