Question 1

According to Figure 7-5 above,point "B" would most likely represent what option for entering the global marketplace?
A)exporting
B)joint venture
C)direct investment
D)franchising
E)licensing

Accepted Answer

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

Question 2

As a firm changes its global market-entry strategy from exporting to direct investment,all of the following increase EXCEPT:
A)marketing control.
B)risk.
C)divestiture.
D)profit potential.
E)financial commitment.

Accepted Answer

Divestiture is the act of selling off or disposing of business assets or divisions, and it does not increase as a firm changes its global market-entry strategy from exporting to direct investment. However, all the other options increase as the level of involvement in a foreign market increases through direct investment.

Question 3

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 are specifically related to a manufacturer's quality management and quality assurance system, and provide standards for registration and certification. UN 2012 is related to hazardous goods transport, NAICS is a classification system for industries, NAFTA is a trade agreement, and ISO 14000 is related to environmental management.

Question 4

Once 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)countertrading
D)cooperative
E)franchising

Accepted Answer

The answer of Once a company has decided to enter...

Question 5

According to Figure 7-5 above,point "A" would most likely represent what option for entering the global marketplace?
A)joint venture
B)licensing
C)exporting
D)direct investment
E)franchise

Accepted Answer

Point A on the graph represents the lowest level of involvement in the global marketplace, which would be exporting. This involves selling products or services in foreign markets without having a physical presence in those markets. Joint ventures, licensing, direct investment, and franchise all involve a higher level of involvement and investment in the foreign market.

Question 6

Indirect exporting occurs when a firm sells its domestically produced products in a foreign country
A)in violation of a quota.
B)without paying import tariffs.
C)without paying export duties.
D)through a joint venture.
E)through an intermediary.

Accepted Answer

Indirect exporting refers to a situation where a firm exports its products to a foreign country through the use of an intermediary, such as an export management company or a trading company. The intermediary handles various tasks associated with the export process, such as finding buyers in the foreign market, arranging for transportation and delivery, and handling paperwork related to customs and tariffs. By using an intermediary, the exporting firm can avoid some of the risks and costs of international business, such as currency fluctuations, language barriers, and unfamiliar legal regulations.

Question 7

Exporting refers to a global market-entry strategy
A)in which a company will sell its products in international markets but not in its own domestic market.
B)in which a company produces goods in one country and sells them in another country.
C)in which a company will manufacture its product in several countries at the same time using different brand names and slight product modifications.
D)in which a company will manufacture products specifically designed for non-domestic markets,but will sell those products to distributors who take title and resell the products to different companies around the world.
E)whereby a product is made in one country,assembled in a second country,and ultimately marketed to a third country.

Accepted Answer

Exporting refers to selling goods produced in one country to another country. This does not necessarily mean that the company does not sell its products in its own domestic market (option A) or that it manufactures products in several countries with different brand names and modifications (option C). Option D refers to an international licensing strategy, while option E refers to a form of outsourcing known as offshoring.

Question 8

According to Figure 7-5 above,points "B" and "C" would most likely represent __________ and __________ options respectively for entering the global marketplace.
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 According to Figure 7-5 above,points "B" and...

Question 9

According to Figure 7-5 above,point "C" would most likely represent what option for entering the global marketplace?
A)exporting
B)joint venture
C)direct investment
D)licensing
E)franchising

Accepted Answer

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

Question 10

According to Figure 7-5 above,points "A" and "D" would most likely represent __________ and __________ options respectively for entering the global marketplace.
A)joint venture;licensing
B)licensing;exporting
C)licensing;joint venture
D)direct investment;licensing
E)exporting;direct investment

Accepted Answer

The answer of According to Figure 7-5 above,points "A" and...

Question 11

Once 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 venture

Accepted Answer

Licensing allows a company to grant permission to a foreign company to use its intellectual property, such as trademarks, patents, or copyrights, in exchange for a fee. This is a low-risk market entry option, as the licensee assumes most of the costs and risks associated with producing and marketing the product or service in the foreign market. It also allows the licensor to gain access to new markets without having to invest significant amounts of capital or resources.

Question 12

When a firm sells its domestically produced products in a foreign country through an intermediary,it is referred to as
A)direct exporting.
B)indirect exporting.
C)licensing.
D)franchising.
E)foreign assembly.

Accepted Answer

Indirect exporting involves selling domestically produced products in a foreign market through an intermediary, such as an export management company or a trading company. This allows the firm to enter the foreign market without having to establish its own distribution channels or sales force in the foreign country. Direct exporting, on the other hand, involves selling directly to customers in the foreign market, while licensing and franchising involve agreements to permit the use of the firm's intellectual property or operating systems by another party in the foreign market. Foreign assembly involves manufacturing the product in a foreign country using components or parts from the home country.

Question 13

A 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, it gains more control over its marketing activities and can tailor them to suit the specific needs of its target market. This increased control allows the firm to increase its profit potential, as it can more effectively differentiate its products and better compete with local firms. Therefore, the correct answer is B - increases.

Question 14

What market entry option allows a company to make the least number of changes in terms of its product,its organization,and even its corporate goals?
A)exporting
B)licensing
C)joint venture
D)direct investment
E)franchising

Accepted Answer

Exporting involves selling goods or services produced in one country to another country without making significant changes to the product, organization or corporate goals. Therefore, exporting is the best choice for a company that wants to make the least number of changes. Licensing, joint venture, direct investment, and franchising all involve more significant changes in terms of product, organization, or corporate goals.

Question 15

Once 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)joint venture
C)cooperative
D)multiparty initiative
E)mutual investment

Accepted Answer

Joint venture allows the company to partner with a local company, sharing resources and expertise while also sharing the risks and rewards of the venture. This can be an effective way to enter a new market while minimizing financial risks and gaining access to local knowledge and distribution channels.

Question 16

According to Figure 7-5 above,point "D" would most likely represent what option for entering the global marketplace?
A)exporting
B)joint venture
C)direct investment
D)franchising
E)licensing

Accepted Answer

Point "D" on the graph is located in the high level of control and high level of investment quadrant, indicating that it most likely represents direct investment, which involves a company establishing a physical presence in a foreign country through ownership or control of production facilities, such as factories or distribution centers. This requires a high level of commitment and investment, as well as a high level of control over operations, which is reflected in the position of point "D" on the graph.

Question 17

Indirect exporting refers to
A)offering the right to a trademark,patent,trade secret,or similarly valued item of intellectual property in return for a royalty or fee.
B)contracting with a foreign firm to manufacture products according to stated specifications.
C)avoiding the use of additional parties when a firm sells its domestically produced products in another country.
D)selling a firm's domestically produced products in a foreign country through an intermediary.
E)selling a firm's domestically produced products in a foreign country without interference by that government.

Accepted Answer

Indirect exporting refers to a situation where a company sells its domestically produced products in a foreign country through an intermediary. This intermediary could be an export management company or a trading company that has established connections with foreign distributors or buyers. The intermediary takes care of tasks such as marketing, shipping, and handling of the products, making it easier for the domestic company to enter the foreign market.

Question 18

A 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 increase. Direct investment requires larger investments and long-term commitments, which leads to higher financial risks compared to exporting.

Question 19

Once 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)microfinancing
C)unilateral venture
D)cooperative
E)direct investment

Accepted Answer

Direct investment is typically the best option for companies looking to enter the global marketplace when they have the financial resources and long-term commitment to establish a physical presence in a new market. This provides greater control over operations and the ability to adapt to local market conditions, but also requires a significant investment of time and money. Exporting, licensing, and joint ventures may be more appropriate for companies with limited resources or risk aversion. Franchising and microfinancing are generally not relevant options for market entry.

Question 20

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)direct investment
C)countertrade
D)licensing
E)multinational 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. Direct investment refers to a company investing in and owning facilities in a foreign country, while countertrade involves exchanging goods or services instead of using currency. Licensing involves granting a company in another country the right to use a company's intellectual property. Multinational marketing involves developing different marketing strategies to appeal to different countries or regions.

Quiz 7: Understanding and Reaching Global Consumers and Markets

According to Figure 7-5 above,point "B" would most likely represent what option for entering the global marketplace?

As a firm changes its global market-entry strategy from exporting to direct investment,all of the following increase EXCEPT:

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

Once 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.

According to Figure 7-5 above,point "A" would most likely represent what option for entering the global marketplace?

Indirect exporting occurs when a firm sells its domestically produced products in a foreign country

Exporting refers to a global market-entry strategy

According to Figure 7-5 above,points "B" and "C" would most likely represent and options respectively for entering the global marketplace.

According to Figure 7-5 above,point "C" would most likely represent what option for entering the global marketplace?

According to Figure 7-5 above,points "A" and "D" would most likely represent and options respectively for entering the global marketplace.

Once 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.

When a firm sells its domestically produced products in a foreign country through an intermediary,it is referred to as

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

What market entry option allows a company to make the least number of changes in terms of its product,its organization,and even its corporate goals?

Once 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.

According to Figure 7-5 above,point "D" would most likely represent what option for entering the global marketplace?

Indirect exporting refers to

A 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

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