Question 1

European Union (EU)has created abundant marketing opportunities because it is no longer necessary to
A) print material in multiple languages.
B) continually monitor currency exchange rates.
C) trade with the former Eastern European communist countries.
D) obey international trade regulations.
E) use the American dollar as an economic standard.

Accepted Answer

The EU has a single currency, the Euro, for most of its member countries, which reduces the need to monitor currency exchange rates within the Eurozone.

Question 2

Which of the following is most accurate in regards to the Asian free trade agreements?
A) Efforts to liberalize trade in East Asia are growing.
B) Asian free trade agreements are more formal than those of the EU and NAFTA.
C) Asian free trade agreements are based on ethnicity rather than geographical borders.
D) Asian free trade agreements encourage the formation of multinational corporations.
E) Asian free trade agreements recently include India and China.

Accepted Answer

Efforts to liberalize trade in East Asia are growing, with initiatives such as the ASEAN Free Trade Area (AFTA) and the Regional Comprehensive Economic Partnership (RCEP) aiming to reduce barriers and increase economic integration among Asian countries. Choices B, C, D, and E are not accurate or are incomplete statements.

Question 3

Which of the following statements about the World Trade Organization (WTO)is most accurate?
A) The World Trade organization is a temporary institution.
B) The 153 member countries of the WTO account for less than 25 percent of world trade.
C) The WTO sets rules governing trade between its members and the rest of the world.
D) The WTO uses panels of trade experts who can issue non-binding recommendations.
E) The WTO was formed by the major industrialized nations of the world.

Accepted Answer

The answer of Which of the following statements about the...

Question 4

European Union (EU)in mid-2012 consisted of 27 countries with more than 500 million consumers.The EU has eliminated most barriers to the free flow of goods,services,capital,and labor across its borders.Which of the following countries is NOT a member of the EU as of mid-2012?
A) Latvia
B) Greece
C) Ireland
D) Switzerland
E) England

Accepted Answer

Switzerland is not a member of the EU as of mid-2012.

Question 5

Which of the following statements about the World Trade Organization (WTO)is most accurate?
A) The World Trade organization is a temporary institution.
B) The 153 member countries of the WTO account for less than 25 percent of world trade.
C) The WTO sets rules governing trade among its members.
D) The WTO uses panels of trade experts who can issue non-binding recommendations.
E) The WTO was formed by the United Nations.

Accepted Answer

The most accurate statement is that the WTO sets rules governing trade among its members. The WTO is a permanent institution, not a temporary one (option A), and its member countries account for more than 98% of world trade, making option B incorrect. The WTO uses dispute settlement panels, not just panels of trade experts, and their recommendations are binding, making option D incorrect. Finally, the WTO is not a part of the United Nations, so option E is also incorrect.

Question 6

European Union consists of 27 member countries.This single market houses more than __________ million consumers with a combined GDP that is larger than that of the United States.
A) 100
B) 200
C) 300
D) 400
E) 500

Accepted Answer

The European Union's single market includes over 500 million consumers, making it one of the largest consumer markets in the world.

Question 7

Strategic alliances refer to
A) multinational firms that have as many different product variations, brand names, and advertising programs as countries in which they do business.
B) when a foreign company and a local firm invest together to create a local business in order to share ownership, control, and profits of the new company.
C) when a domestic firm actually invests in and owns a foreign subsidiary or division.
D) agreements between two or more independent firms to cooperate for the purpose of achieving common goals such as a competitive advantage or customer value.
E) the right to a trademark, patent, trade secret, or similarly valued item of intellectual property of one firm in return for a royalty or fee from another firm.

Accepted Answer

Strategic alliances are agreements between two or more independent firms to cooperate for the purpose of achieving common goals such as a competitive advantage or customer value. This can include partnerships, joint ventures, or collaborations. The key aspect is that the firms involved remain independent while working together towards a shared objective.

Question 8

"Little Dragons," in relation to the Asian free trade agreements,are composed of:
A) Hong Kong, Singapore, South Korea, and Taiwan.
B) Hong Kong, Shanghai, Singapore, and Bangkok.
C) Beijing, Hong Kong, Shanghai, and Singapore.
D) Beijing, Tokyo, Taiwan, and Singapore.
E) Beijing, Hong Kong, Taiwan, and Bangkok.

Accepted Answer

The term "Little Dragons" refers to the four Asian economies- Hong Kong, Singapore, South Korea, and Taiwan- that experienced rapid industrialization and economic growth in the late 20th century.

Question 9

Which of the following is most accurate in regards to the Asian free trade agreements?
A) Efforts to liberalize trade in East Asia have decreased as a result of the economic downturn in 2009.
B) Asian free trade agreements are based on ethnicity rather than geographical borders.
C) Asian free trade agreements encourage the formation of multinational corporations.
D) Asian free trade agreements recently include India and China.
E) Asian free trade agreements have reduced tariffs among countries and promoted trade.

Accepted Answer

Asian free trade agreements have focused on reducing tariffs and promoting trade among member countries, rather than on ethnicity or geographic borders. While the economic downturn in 2009 may have temporarily slowed efforts to liberalize trade, the overall trend has been towards greater trade integration. India and China have also recently been included in various Asian free trade agreements.

Question 10

Which of the following statements about the World Trade Organization (WTO)is most accurate?
A) The World Trade organization is a temporary group that meets on an as needed basis.
B) The 153 member countries of the WTO account for approximately 55 percent of world trade.
C) The WTO sets rules governing trade between its members and the remainder of the world.
D) The WTO uses panels of trade experts who can issue binding decisions.
E) The WTO was formed by the United Nations.

Accepted Answer

The WTO uses panels of trade experts to resolve disputes between member countries, and these panels can issue binding decisions.

Question 11

Global competition refers to when
A) a firm produces and markets its products worldwide rather than in its own domestic market.
B) firms originate, produce, and market their products and services worldwide.
C) two firms from two different countries compete for market share in a domestic market.
D) two or more firms from different nations combine their resources to market products globally.
E) the firm from one nation dominates the market for that product in every other nation.

Accepted Answer

Global competition refers to firms originating, producing, and marketing their products and services worldwide. Option B is the only choice that accurately describes this concept. Option A refers to international marketing, which is a subset of global competition. Option C describes domestic competition, rather than global. Option D describes international joint ventures or partnerships, which are not the same as global competition. Option E describes market dominance, rather than competition.

Question 12

firms originate,produce,and market their products and services worldwide,it is referred to as __________.
A) acculturation
B) global competition
C) free trade
D) global branding
E) transactional exchange

Accepted Answer

Global competition refers to the phenomenon where firms compete with each other on a global scale, originating, producing, and marketing products and services worldwide. It is characterized by the elimination of trade barriers, the rise of free trade zones, and technological advancements that facilitate communication and transportation across national borders. Acculturation refers to the process of adapting to a new culture, free trade refers to the policy of allowing goods and services to move across national borders without restrictions, global branding refers to the use of consistent brand identity across different markets, and transactional exchange refers to the exchange of goods and services for money or other goods and services.

Question 13

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
A) there is a legally binding code of economic conduct.
B) there is immunity against world recessions.
C) there are fewer regulatory restrictions on transportation, advertising, and promotion.
D) there is a common language advantage among EU consumers.
E) most companies within the EU are engaging in strategic global partnerships.

Accepted Answer

With the EU, there are fewer regulatory restrictions on transportation, advertising, and promotion, which makes doing business across member countries easier and more efficient. This can translate into cost savings for companies and more choices for consumers. However, the other options - A, B, D, and E - are not accurate descriptions of the benefits of the EU.

Question 14

Pepsi-Cola,now available in more than 160 countries and territories,accounts for __________ percent of all soft drinks sold internationally.
A) 10
B) 15
C) 20
D) 25
E) 30

Accepted Answer

The answer of Pepsi-Cola,now available in more than 160 countries...

Question 15

EU has benefited its member nations because
A) there is immunity against world recessions.
B) there is a common language advantage among EU consumers.
C) most companies within the EU are engaging in strategic global partnerships.
D) there is a legally binding code of economic conduct.
E) firms do not need to market their products and services on a nation-by-nation basis.

Accepted Answer

The EU allows for a single market where goods and services can be marketed across member nations without the need for separate national strategies, reducing costs and increasing efficiency.

Question 16

European Union is an economic and political union of __________ member countries located primarily in Europe that have eliminated most barriers to the free flow of goods,services,capital,and labor across their borders.
A) 17
B) 20
C) 27
D) 30
E) 37

Accepted Answer

The European Union consists of 27 member countries located primarily in Europe. The other choices are not correct as the actual number of member countries is different - 17, 20, 30, and 37.

Question 17

Which of the following statements about the World Trade Organization (WTO)is most accurate?
A) The World Trade organization is a temporary institution.
B) The 153 member countries of the WTO account for more than 90 percent of world trade.
C) The WTO sets rules governing trade between its members and the remainder of the world.
D) The WTO uses panels of trade experts who can issue non-binding recommendations.
E) The WTO was formed by the United Nations.

Accepted Answer

The statement that the 153 member countries of the WTO account for more than 90 percent of world trade is accurate. The WTO is a permanent institution, not a temporary one (option A). While the WTO does set rules governing trade between its members, it also applies these rules to non-members (option C). The WTO dispute settlement mechanism produces binding decisions, not non-binding recommendations (option D). Finally, the WTO is not a UN agency, but rather an independent international organization (option E).

Question 18

North American Free Trade Agreement was designed to encourage free trade between
A) North America, Central America, and South America.
B) the United States, Canada, and Mexico.
C) the United States and the European Union.
D) member countries originally from NATO (North Atlantic Treaty Organization).
E) North America and The Commonwealth of Independent States.

Accepted Answer

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

Question 19

Agreements between two or more independent firms to cooperate for the purpose of achieving common goals are referred to as
A) compacts.
B) global partnerships.
C) strategic alliances.
D) free trade agreements.
E) economic coalitions.

Accepted Answer

Strategic alliances are partnerships between independent firms that agree to cooperate to achieve common goals. This type of collaboration allows companies to share resources, knowledge, and expertise to enter new markets, reduce costs, and increase competitiveness without merging or acquiring each other. Strategic alliances can take various forms, such as joint ventures, licensing agreements, distribution agreements, research and development consortia, marketing alliances, and outsourcing contracts. The success of a strategic alliance depends on various factors, such as trust, compatibility, communication, governance, and mutual benefits.

Question 20

CAFTA-DR is a comprehensive free trade agreement between Costa Rica,the Dominican Republic,El Salvador,Guatemala,Honduras,Nicaragua,and __________.
A) the United States
B) Panama
C) Belize
D) Cuba
E) Mexico

Accepted Answer

CAFTA-DR is a free trade agreement between the United States and six Central American countries including Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, and Nicaragua.

Quiz 7: Understanding and Reaching Global Consumers and Markets

European Union (EU) has created abundant marketing opportunities because it is no longer necessary to

Which of the following is most accurate in regards to the Asian free trade agreements?

Which of the following statements about the World Trade Organization (WTO) is most accurate?

European Union (EU) in mid-2012 consisted of 27 countries with more than 500 million consumers.The EU has eliminated most barriers to the free flow of goods,services,capital,and labor across its borders.Which of the following countries is NOT a member of the EU as of mid-2012?

Which of the following statements about the World Trade Organization (WTO) is most accurate?

European Union consists of 27 member countries.This single market houses more than __________ million consumers with a combined GDP that is larger than that of the United States.

Strategic alliances refer to

"Little Dragons," in relation to the Asian free trade agreements,are composed of:

Which of the following is most accurate in regards to the Asian free trade agreements?

Which of the following statements about the World Trade Organization (WTO) is most accurate?

Global competition refers to when

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

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

Pepsi-Cola,now available in more than 160 countries and territories,accounts for __________ percent of all soft drinks sold internationally.

EU has benefited its member nations because

European Union is an economic and political union of __________ member countries located primarily in Europe that have eliminated most barriers to the free flow of goods,services,capital,and labor across their borders.

Which of the following statements about the World Trade Organization (WTO) is most accurate?

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

Agreements between two or more independent firms to cooperate for the purpose of achieving common goals are referred to as

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