Question 1

The __________ arrangement between Ericsson, a Swedish telecommunications firm, and CGCT, a French switch maker, enabled them together to beat out AT&T for a $100 million French contract.

Accepted Answer

A)  franchising
B)  licensing
C)  joint venture
D)  direct investment
E)  exportingF) A) and B)
G) C) and D)

Question 2

Global companies have five strategies for matching products and their promotion efforts to global markets. Changing a product in some way to make it more appropriate for a country's climate or preferences is an example of which type of global marketing product and promotion strategy?

Accepted Answer

A)  product extension
B)  product customization
C)  product adaptation
D)  product invention
E)  product integrationF) A) and D)
G) C) and D)

Question 3

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)  __________.

Accepted Answer

A)  franchising
B)  microfinancing
C)  unilateral venture
D)  cooperative
E)  direct investmentF) A) and C)
G) A) and B)

Question 4

In recent years, a number of countries with similar economic goals have formed transnational trade groups or signed trade agreements for the purpose of promoting free trade. Describe the three discussed in the textbook.

Accepted Answer

(1) In 2015 the European Union (EU) cons...

Question 5

One variation of licensing is referred to as

Accepted Answer

A)  direct investment.
B)  joint ventures.
C)  direct exporting.
D)  franchising.
E)  dual adaptation.F) All of the above
G) B) and D)

Question 6

The price of one country's currency expressed in terms of another country's currency is referred to as the

Accepted Answer

A)  balance of price.
B)  currency exchange rate.
C)  money conversion factor.
D)  balance of payments.
E)  transfer payment.F) A) and C)
G) C) and D)

Question 7

Chrysler Corp. 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 3,100,000 Japanese yen, and the Japanese could not afford to buy it. Its price was set without regard for the

Accepted Answer

A)  balance of price.
B)  currency exchange rate.
C)  reciprocity price.
D)  balance of payments.
E)  balance of trade.F) A) and D)
G) B) and C)

Question 8

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

Accepted Answer

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 occur, but multinational companies are insulated from the affects because of direct investment.
C)  Exchange rate fluctuations are relatively rare, but when they occur, their effects are minimal.
D)  Exchange rate fluctuations are now almost nonexistent due in great part to the stability of the euro.
E)  Exchange rate fluctuations may affect the financial sector but rarely reach the consumer.F) B) and D)
G) A) and B)

Question 9

If you wanted to set up a business importing amber jewelry from Latvia to the United States, you would have to plan on paying the U.S. Customs Service a government tax of roughly 11 percent of the value of the product as

Accepted Answer

A)  a bribe.
B)  a tariff.
C)  a subsidy.
D)  an excise tax.
E)  a quota.F) A) and E)
G) A) and D)

Question 10

Coca-Cola has operations in all but three nations in the world and Pepsi-Cola is now available in more than 160 countries and territories, making the soft drink industry an example of

Accepted Answer

A)  global competition.
B)  acculturation.
C)  free trade.
D)  global branding.
E)  transactional exchange.F) None of the above
G) A) and C)

Question 11

All of the following are disadvantages of licensing except

Accepted Answer

A)  the licensor reduces its potential profits gained from product sales.
B)  the foreign country gains employment by having the product manufactured locally.
C)  the licensor forgoes control of its product.
D)  should the licensee prove to be a poor choice, the name or reputation of the company may be harmed.
E)  the licensor may be creating its own competition.F) C) and D)
G) A) and B)

Question 12

The Parthenon evokes strong feelings from consumers in Greece and is referred to as the "holy rock." Coca-Cola marketers did not expect that this __________, when used in a marketing campaign that replaced the columns with Coke bottles, would arouse such an angry response in that country.

Accepted Answer

A)  cultural symbol
B)  anthropomorphic code
C)  back translation
D)  semantic representation
E)  civil analysisF) D) and E)
G) A) and E)

Question 13

A country's income distribution is important because it gives a more reliable picture of a country's

Accepted Answer

A)  consumer tastes.
B)  taxable income.
C)  purchasing power.
D)  discretionary income.
E)  cost of living.F) C) and E)
G) B) and C)

Question 14

An estimated 10 to 15 percent of world trade involves __________, the practice of using barter rather than money for making global sales.

Accepted Answer

A)  cross trade
B)  countertrade
C)  exchange trade
D)  trade feedback
E)  market tradingF) A) and B)
G) A) and C)

Question 15

Even though Exxon adapts its gasoline blends for different countries based on climate, the promotion message is unchanged. The wording of that slogan is

Accepted Answer

A)  "Put a Tiger in Your Tank."
B)  "Put the Pedal to the Metal."
C)  "Buy American Fuel."
D)  "Keep America Driving."
E)  "Power to the Pistons."F) C) and E)
G) A) and B)

Question 16

Exporting refers to a global market entry strategy

Accepted Answer

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 nondomestic markets, but will sell those products to distributors that 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.F) A) and D)
G) B) and E)

Question 17

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

Accepted Answer

A)  direct exporting.
B)  indirect exporting.
C)  licensing.
D)  franchising.
E)  foreign assembly.F) A) and E)
G) A) and D)

Question 18

The use of __________ as a tool for exchanging goods, services, and information on a global scale is one of the trends that has affected world trade.

Accepted Answer

A)  buying centers
B)  Internet technology
C)  language translators
D)  tariff and quota policies
E)  multinational marketing strategiesF) A) and E)
G) B) and E)

Question 19

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

Accepted Answer

A)  acculturation.
B)  free trade.
C)  global branding.
D)  global competition.
E)  transactional exchange.F) C) and D)
G) A) and C)

Question 20

The strategy transnational firms employ that standardizes marketing activities when there are cultural similarities and adapts them when cultures differ is referred to as

Accepted Answer

A)  a global marketing strategy.
B)  an integrated marketing strategy.
C)  a transnational marketing strategy.
D)  a meganational marketing strategy.
E)  an international marketing strategy.F) All of the above
G) A) and C)

Exam 7: Understanding and Reaching Global Consumers and Markets

The __________ arrangement between Ericsson, a Swedish telecommunications firm, and CGCT, a French switch maker, enabled them together to beat out AT&T for a $100 million French contract.

Correct AnswerverifiedShow Answer

Even though Exxon adapts its gasoline blends for different countries based on climate, the promotion message is unchanged. The wording of that slogan is

Correct AnswerverifiedShow Answer

In recent years, a number of countries with similar economic goals have formed transnational trade groups or signed trade agreements for the purpose of promoting free trade. Describe the three discussed in the textbook.

Correct Answerverified(1) In 2015 the European Union (EU) cons...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

A country's income distribution is important because it gives a more reliable picture of a country's

Correct AnswerverifiedShow Answer

The use of __________ as a tool for exchanging goods, services, and information on a global scale is one of the trends that has affected world trade.

Correct AnswerverifiedShow Answer

An estimated 10 to 15 percent of world trade involves __________, the practice of using barter rather than money for making global sales.

Correct AnswerverifiedShow Answer

Exporting refers to a global market entry strategy

Correct AnswerverifiedShow Answer

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) __________.

Correct AnswerverifiedShow Answer

The price of one country's currency expressed in terms of another country's currency is referred to as the

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

One variation of licensing is referred to as

Correct AnswerverifiedShow Answer

The strategy transnational firms employ that standardizes marketing activities when there are cultural similarities and adapts them when cultures differ is referred to as

Correct AnswerverifiedShow Answer

If you wanted to set up a business importing amber jewelry from Latvia to the United States, you would have to plan on paying the U.S. Customs Service a government tax of roughly 11 percent of the value of the product as

Correct AnswerverifiedShow Answer

All of the following are disadvantages of licensing except

Correct AnswerverifiedShow Answer

Chrysler Corp. 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 3,100,000 Japanese yen, and the Japanese could not afford to buy it. Its price was set without regard for the

Correct AnswerverifiedShow Answer

Global companies have five strategies for matching products and their promotion efforts to global markets. Changing a product in some way to make it more appropriate for a country's climate or preferences is an example of which type of global marketing product and promotion strategy?

Correct AnswerverifiedShow Answer

Coca-Cola has operations in all but three nations in the world and Pepsi-Cola is now available in more than 160 countries and territories, making the soft drink industry an example of

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The Parthenon evokes strong feelings from consumers in Greece and is referred to as the "holy rock." Coca-Cola marketers did not expect that this __________, when used in a marketing campaign that replaced the columns with Coke bottles, would arouse such an angry response in that country.

Correct AnswerverifiedShow Answer

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