Question 1

Yum! Brands,the parent company of KFC,has pursued an aggressive growth strategy in China.There are now more than 3,700 restaurants in 650 Chinese cities,and KFC has a 40 percent market share of the entire fast-food industry there.Yum! Brands China owns and directly manages about 90 percent of its Chinese stores,so it appears that the company prefers __________ in this market.

Accepted Answer

A)   licensing
B)   local assembly
C)   a joint venture
D)   direct investment
E)   local manufacturingF) C) and D)
G) B) and D)

Question 2

A(n) __________ firm views the world as one market and emphasizes cultural similarities across countries or universal consumer needs and wants more than differences.

Accepted Answer

A)   transcontinental
B)   multidomestic
C)   international
D)   multinational
E)   transnationalF) B) and C)
G) B) and D)

Question 3

The balance of trade is the

Accepted Answer

A)   difference between the monetary value of a nation's exports and imports.
B)   sum of the monetary value of a nation's exports and imports.
C)   monetary value of a nation's exports divided by its imports.
D)   surplus that occurs when nations engage in exporting.
E)   state of equilibrium when two neighboring nations participate in countertrade.F) B) and D)
G) A) and D)

Question 4

Adding to the complexity of global distribution is the need for ________,in addition to the channels within a foreign nation.

Accepted Answer

A)   parallel importing
B)   channels between nations
C)   communication adaptation
D)   product adaptation
E)   economic stability of the final consumerF) B) and D)
G) A) and B)

Question 5

In terms of the global marketplace,there are three primary types of companies: international firms,multinational firms,and transnational firms.The key factor that distinguishes one from another is

Accepted Answer

A)   the firm's financial capacity to take risks.
B)   the willingness and ability to use diversity and cultural differences as a positive in its marketing efforts.
C)   the firm's level of customization in marketing efforts as strategy for individual global markets.
D)   the relative position of the product or service in terms of its life cycle.
E)   the relative size of the firm both in financial terms and in production capacity.F) A) and D)
G) C) and D)

Question 6

A global marketing strategy refers to

Accepted Answer

A)   the strategy used by multinational firms that have as many different product variations, brand names, and advertising programs as countries in which they do business.
B)   the strategy of transnational firms not to employ adaptive marketing techniques when there are cultural differences, but to redirect their marketing resources toward customer education.
C)   the strategy of transnational firms that employ the practice of standardizing marketing activities when there are cultural similarities and adapting them when cultures differ.
D)   the global strategy of seeking out already established firms in other nations and selling them the rights to manufacture and distribute the firm's products through a host nation's local businesses.
E)   the strategy currently used by most U.S. domestic firms that when entering a new international market, these firms offer only those products that require the least amount of product adaptation.F) A) and E)
G) B) and E)

Question 7

Why is it wise for global marketers to use back translation?
 Provide an example to support your answer.

Accepted Answer

Back translation refers to a translated ...

Question 8

Yogen Früz is a successful chain of frozen yogurt shops originating in Canada.Archeology Investments has an agreement with the Canadian firm that grants rights to its company to open and operate Yogen Früz shops in Dubai,Oman,Qatar,Bahrain,and Kuwait.Yogen Früz is engaged in

Accepted Answer

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

Question 9

The U.S.Commerce Department imposed additional duties of 31 percent to 250 percent on imported photovoltaic products from Chinese solar manufacturers after ruling that they sold them below cost.The Commerce Department took this action in response to what it saw as

Accepted Answer

A)   tariff avoidance.
B)   countertrade.
C)   surplus marketing.
D)   underbidding.
E)   dumping.F) C) and E)
G) C) and D)

Question 10

Recently,the United States imposed a 35% tariff on Chinese tire imports in hopes of sustaining U.S.jobs in tire manufacturing.This addition of tariffs is an example of

Accepted Answer

A)   imposing the rule of eminent domain.
B)   increasing ethnocentrism.
C)   enhancing domestic imperialism.
D)   increasing protectionism.
E)   slowing countertrade.F) B) and D)
G) D) and E)

Question 11

A restriction placed on the amount of a product allowed to enter or leave a country is referred to as a

Accepted Answer

A)   quota.
B)   tariff.
C)   GATT tax.
D)   subsidy.
E)   excise tax.F) A) and D)
G) A) and C)

Question 12

Which of the following is an advantage inherent in the use of licensing?

Accepted Answer

A)   The licensor retains control of its product.
B)   The licensor is protected from creating a potential competitor.
C)   It provides an exemption from domestic trade regulations.
D)   There is an increase in potential profit compared with direct investment.
E)   The licensee gains information that can help it start with a competitive advantage.F) None of the above
G) C) and D)

Question 13

A country's imports

Accepted Answer

A)   stimulate the imports of other countries.
B)   have no effect on its exports.
C)   have no relationship with its balance of trade.
D)   affect its exports and exports affect its imports.
E)   over time will decrease its overall economic activity.F) D) and E)
G) All of the above

Question 14

Global competition exists when

Accepted Answer

A)   a firm produces and markets its products domestically rather than internationally.
B)   firms originate, produce, and market their products and services worldwide.
C)   two firms from two different countries compete for market share in a single domestic market.
D)   two or more firms from different nations combine their resources to market products in a single domestic market.
E)   the firm from one nation dominates the market for its product in every nation.F) A) and B)
G) B) and E)

Question 15

Joint venture refers to

Accepted Answer

A)   offering the right to a trademark, patent, trade secret, or similarly valued items of intellectual property in return for a royalty or fee.
B)   contracting with a foreign firm to manufacture products according to certain specifications.
C)   when a foreign company and a local firm invest together to create a local business.
D)   having a company handle its own exports directly, but using intermediaries for importing.
E)   exporting through an intermediary, which often has the knowledge and means to succeed in selling a firm's products abroad.F) A) and D)
G) C) and E)

Question 16

A situation in which products are bought in a lower-priced country from a manufacturer's authorized reseller,shipped to higher-priced countries,and then sold through unauthorized retailers below the manufacturer's suggested retail price is referred to as

Accepted Answer

A)   the black market.
B)   a gray market.
C)   dumping.
D)   a globalized market.
E)   parallel exporting.F) B) and D)
G) All of the above

Question 17

The appreciation of fashion and music,and a desire for novelty and trendier designs and images

Accepted Answer

A)   are preferences found more in American teenagers than in most other cultures around the world.
B)   actually begin at age 10, but begin to decline significantly as students enter high school.
C)   ironically are found more frequently among teenagers who cannot afford to make those purchases than for those who can.
D)   are preferences of teenagers around the world regardless of where they live.
E)   are often established early among European teens and they typically linger well into adulthood.F) B) and D)
G) B) and E)

Question 18

Licensing refers to

Accepted Answer

A)   offering the right to a trademark, patent, trade secret, or similarly valued items of intellectual property in return for a royalty or fee.
B)   contracting with a foreign firm to manufacture products according to certain specifications.
C)   when a foreign country and a local firm invest together to create a local business.
D)   having a company handle its own exports directly without intermediaries.
E)   exporting through an intermediary, which often has the knowledge and means to succeed in selling a firm's product abroad.F) All of the above
G) C) and E)

Question 19

GlaxoSmithKline PLC of Great Britain makes Breathe-Right nasal strips.It sells the same product in many countries because customers all over the world will use them in the same way.This is an example of which type of global marketing product and promotion strategy?

Accepted Answer

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

Question 20

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 two discussed in the textbook.

Accepted Answer

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

Exam 6: Understanding and Reaching Global Consumers and Markets

Licensing refers to

Correct Answer
verified

Adding to the complexity of global distribution is the need for ________,in addition to the channels within a foreign nation.

Correct Answer
verified

Correct Answer
verified

The U.S.Commerce Department imposed additional duties of 31 percent to 250 percent on imported photovoltaic products from Chinese solar manufacturers after ruling that they sold them below cost.The Commerce Department took this action in response to what it saw as

Correct Answer
verified

Recently,the United States imposed a 35% tariff on Chinese tire imports in hopes of sustaining U.S.jobs in tire manufacturing.This addition of tariffs is an example of

Correct Answer
verified

Global competition exists when

Correct Answer
verified

Why is it wise for global marketers to use back translation? Provide an example to support your answer.

Correct Answer
verified
Back translation refers to a translated ...
View Answer

The balance of trade is the

Correct Answer
verified

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 two discussed in the textbook.

Correct Answer
verified
(1)In 2015 the European Union (EU)consis...
View Answer

A situation in which products are bought in a lower-priced country from a manufacturer's authorized reseller,shipped to higher-priced countries,and then sold through unauthorized retailers below the manufacturer's suggested retail price is referred to as

Correct Answer
verified

The appreciation of fashion and music,and a desire for novelty and trendier designs and images

Correct Answer
verified

In terms of the global marketplace,there are three primary types of companies: international firms,multinational firms,and transnational firms.The key factor that distinguishes one from another is

Correct Answer
verified

A global marketing strategy refers to

Correct Answer
verified

A(n) __________ firm views the world as one market and emphasizes cultural similarities across countries or universal consumer needs and wants more than differences.

Correct Answer
verified

Which of the following is an advantage inherent in the use of licensing?

Correct Answer
verified

Yogen Früz is a successful chain of frozen yogurt shops originating in Canada.Archeology Investments has an agreement with the Canadian firm that grants rights to its company to open and operate Yogen Früz shops in Dubai,Oman,Qatar,Bahrain,and Kuwait.Yogen Früz is engaged in

Correct Answer
verified

A restriction placed on the amount of a product allowed to enter or leave a country is referred to as a

Correct Answer
verified

Joint venture refers to

Correct Answer
verified

GlaxoSmithKline PLC of Great Britain makes Breathe-Right nasal strips.It sells the same product in many countries because customers all over the world will use them in the same way.This is an example of which type of global marketing product and promotion strategy?

Correct Answer
verified

A country's imports

Correct Answer
verified

Exam 6: Understanding and Reaching Global Consumers and Markets

Licensing refers to

Correct AnswerverifiedShow Answer

Adding to the complexity of global distribution is the need for ________,in addition to the channels within a foreign nation.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The U.S.Commerce Department imposed additional duties of 31 percent to 250 percent on imported photovoltaic products from Chinese solar manufacturers after ruling that they sold them below cost.The Commerce Department took this action in response to what it saw as

Correct AnswerverifiedShow Answer

Recently,the United States imposed a 35% tariff on Chinese tire imports in hopes of sustaining U.S.jobs in tire manufacturing.This addition of tariffs is an example of

Correct AnswerverifiedShow Answer

Global competition exists when

Correct AnswerverifiedShow Answer

Why is it wise for global marketers to use back translation? Provide an example to support your answer.

Correct AnswerverifiedBack translation refers to a translated ...View AnswerShow Answer

The balance of trade is the

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 two discussed in the textbook.

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

A situation in which products are bought in a lower-priced country from a manufacturer's authorized reseller,shipped to higher-priced countries,and then sold through unauthorized retailers below the manufacturer's suggested retail price is referred to as

Correct AnswerverifiedShow Answer

The appreciation of fashion and music,and a desire for novelty and trendier designs and images

Correct AnswerverifiedShow Answer

In terms of the global marketplace,there are three primary types of companies: international firms,multinational firms,and transnational firms.The key factor that distinguishes one from another is

Correct AnswerverifiedShow Answer

A global marketing strategy refers to

Correct AnswerverifiedShow Answer

A(n) __________ firm views the world as one market and emphasizes cultural similarities across countries or universal consumer needs and wants more than differences.

Correct AnswerverifiedShow Answer

Which of the following is an advantage inherent in the use of licensing?

Correct AnswerverifiedShow Answer

Yogen Früz is a successful chain of frozen yogurt shops originating in Canada.Archeology Investments has an agreement with the Canadian firm that grants rights to its company to open and operate Yogen Früz shops in Dubai,Oman,Qatar,Bahrain,and Kuwait.Yogen Früz is engaged in

Correct AnswerverifiedShow Answer

A restriction placed on the amount of a product allowed to enter or leave a country is referred to as a

Correct AnswerverifiedShow Answer

Joint venture refers to

Correct AnswerverifiedShow Answer

GlaxoSmithKline PLC of Great Britain makes Breathe-Right nasal strips.It sells the same product in many countries because customers all over the world will use them in the same way.This is an example of which type of global marketing product and promotion strategy?

Correct AnswerverifiedShow Answer

A country's imports

Correct AnswerverifiedShow Answer

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View Answer

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(1)In 2015 the European Union (EU)consis...
View Answer

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