Question 1

A gray market refers to

Accepted Answer

A)   the segment of products specifically designed for the need of older buyers.
B)   a once active and powerful market that is rapidly becoming the bottom of the barrel.
C)   a situation where products are sold through unauthorized channels of distribution.
D)   a pricing structure that is based upon haggling that is considered acceptable in some countries but not others.
E)   the willingness of one party to accept gifts in exchange for better prices or price allowances.F) B) and C)
G) C) and D)

Question 2

Two-thirds of the commercial transactions in Russia involve nonmonetary forms of payment due to limits in formal operating procedures among financial institutions and even limits on the notion of private property there.These would best be described as constraints in the country's

Accepted Answer

A)   capital infrastructure.
B)   political infrastructure.
C)   economic infrastructure.
D)   geopolitical system.
E)   financial exchange system.F) A) and C)
G) A) and B)

Question 3

PepsiCo and The Strauss Group have together formed an Israeli business to market Frito-Lay's Cheetos,Ruffles,and Doritos in Israel.This global market entry strategy is known as

Accepted Answer

A)   franchising.
B)   a joint venture.
C)   licensing.
D)   direct investment.
E)   exporting.F) B) and D)
G) B) and E)

Question 4

A multidomestic marketing strategy refers to

Accepted Answer

A)   the strategy of transnational firms that employ the practice of standardizing marketing activities when there are cultural similarities and adapting them when cultures differ.
B)   the strategy used by firms that use the same product variations, brand names, and advertising programs for every country in which they do business.
C)   the strategy used by firms that have as many different product variations, brand names, and advertising programs as countries in which they do business.
D)   the strategy of seeking out already established firms in other nations and selling them the rights to manufacture and distribute the firm's products.
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) B) and C)
G) A) and B)

Question 5

Five trends in the past decade have significantly influenced the landscape of global marketing.One of them is

Accepted Answer

A)   an increase in most countries' GDP coupled with an increased degree of consumer ethnocentrism.
B)   a significant increase in economic protectionism and a decline in free trade.
C)   a more aggressive attitude toward initiating international tariffs and quota systems.
D)   a decrease in most countries' GDP and a renewal of nationalism.
E)   a decline in economic protectionism by individual countries.F) D) and E)
G) A) and E)

Question 6

Consider the distribution channels through which a product manufactured in one country must travel to reach its destination in another country.The distribution channels can be considered to have been successful when the product reaches the

Accepted Answer

A)   seller.
B)   channels between nations.
C)   seller's international marketing headquarters.
D)   final consumer.
E)   channels within foreign nations.F) A) and E)
G) A) and C)

Question 7

In terms of the global marketplace,there are three primary types of companies: __________ firms,multinational firms,and transnational firms.

Accepted Answer

A)   worldwide
B)   conglomerate
C)   intercontinental
D)   international
E)   cosmopolitanF) A) and B)
G) C) and E)

Question 8

Both Honda and Toyota have plants in the United States that use American labor.This illustrates Honda's and Toyota's use of

Accepted Answer

A)   direct exporting.
B)   direct investment.
C)   joint venture.
D)   licensing.
E)   indirect exporting.F) A) and D)
G) B) and D)

Question 9

Another term for a gray market is

Accepted Answer

A)   equivalent exporting.
B)   back-channel market.
C)   mature marketing.
D)   parallel importing.
E)   transparent market.F) D) and E)
G) C) and D)

Question 10

Give at least one argument for and one argument against protectionism.

Accepted Answer

People who favor protectionism believe t...

Question 11

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

Accepted Answer

A)   becomes more stable
B)   increases
C)   levels off
D)   decreases
E)   becomes more unpredictableF) A) and B)
G) A) and D)

Question 12

Arguments in favor of protectionism include that it

Accepted Answer

A)   helps reduce tariffs and quotas.
B)   encourages the development of domestic industries.
C)   encourages economic reliance on foreign countries.
D)   creates opportunities for the outsourcing of domestic jobs.
E)   creates a more favorable environment for a global economy.F) C) and D)
G) B) and C)

Question 13

Which of the following examples best demonstrates a company's appreciation for another country's values?

Accepted Answer

A)   A German company allows customers to make large purchases using layaway (paying small amounts until the item is paid for and delivered) .
B)   In Brazil, an appliance maintenance firm schedules service appointments allowing only 15 minutes of leeway for missed calls or no shows.
C)   In Japan, a spa owner created special exercise classes for husbands and wives.
D)   In India, a popular hamburger chain separated its dining area by color for people who wanted to eat beef and those who did not.
E)   Calvin Klein reduced the number of outdoor advertising placements showing scantily clad models in countries with predominantly Muslim populations.F) A) and B)
G) A) and D)

Question 14

A brand marketed under the same name in multiple countries with similar and centrally coordinated marketing programs is referred to as

Accepted Answer

A)   a transnational brand.
B)   an international brand.
C)   a multinational brand.
D)   a global brand.
E)   a meganational brand.F) A) and B)
G) A) and C)

Question 15

Which form of entry into a global market makes a firm the most vulnerable to harm regarding its brand name or reputation?

Accepted Answer

A)   direct exporting
B)   indirect exporting
C)   licensing
D)   direct investment
E)   joint ventureF) C) and D)
G) B) and C)

Question 16

The EU has benefited firms in its member nations because

Accepted Answer

A)   it provides a safe haven in times of world economic crises.
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 now a legally binding code of economic conduct.
E)   firms do not need to market their products and services on a nation-by-nation basis.F) A) and D)
G) All of the above

Question 17

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 E)
G) None of the above

Question 18

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

Accepted Answer

A)   exporting.
B)   direct investment.
C)   countertrade.
D)   licensing.
E)   multinational marketing.F) A) and E)
G) A) and D)

Question 19

In addition to about 11,000 trade regulations that specify how goods are to be made and marketed,Japanese car safety rules effectively require all automobile replacement parts to be Japanese.Rules like these often function as

Accepted Answer

A)   economic infrastructure.
B)   trade barriers.
C)   universal codes.
D)   binding requirements.
E)   targets for bribery.F) C) and D)
G) B) and E)

Question 20

By skillfully using __________,global marketers can tie positive meanings to their products,services,and brands to enhance their attractiveness to consumers.

Accepted Answer

A)   cultural symbols
B)   visual icons
C)   trademarks
D)   brand names
E)   ethnic emblemsF) C) and E)
G) None of the above

Exam 6: Understanding and Reaching Global Consumers and Markets

Which of the following examples best demonstrates a company's appreciation for another country's values?

Correct AnswerverifiedShow Answer

Two-thirds of the commercial transactions in Russia involve nonmonetary forms of payment due to limits in formal operating procedures among financial institutions and even limits on the notion of private property there.These would best be described as constraints in the country's

Correct AnswerverifiedShow Answer

In terms of the global marketplace,there are three primary types of companies: __________ firms,multinational firms,and transnational firms.

Correct AnswerverifiedShow Answer

Consider the distribution channels through which a product manufactured in one country must travel to reach its destination in another country.The distribution channels can be considered to have been successful when the product reaches the

Correct AnswerverifiedShow Answer

A multidomestic marketing strategy refers to

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

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The EU has benefited firms in its member nations because

Correct AnswerverifiedShow Answer

Another term for a gray market is

Correct AnswerverifiedShow Answer

Five trends in the past decade have significantly influenced the landscape of global marketing.One of them is

Correct AnswerverifiedShow Answer

A gray market refers to

Correct AnswerverifiedShow Answer

In addition to about 11,000 trade regulations that specify how goods are to be made and marketed,Japanese car safety rules effectively require all automobile replacement parts to be Japanese.Rules like these often function as

Correct AnswerverifiedShow Answer

A brand marketed under the same name in multiple countries with similar and centrally coordinated marketing programs is referred to as

Correct AnswerverifiedShow Answer

By skillfully using __________,global marketers can tie positive meanings to their products,services,and brands to enhance their attractiveness to consumers.

Correct AnswerverifiedShow Answer

Arguments in favor of protectionism include that it

Correct AnswerverifiedShow Answer

PepsiCo and The Strauss Group have together formed an Israeli business to market Frito-Lay's Cheetos,Ruffles,and Doritos in Israel.This global market entry strategy is known as

Correct AnswerverifiedShow Answer

Both Honda and Toyota have plants in the United States that use American labor.This illustrates Honda's and Toyota's use of

Correct AnswerverifiedShow Answer

Which form of entry into a global market makes a firm the most vulnerable to harm regarding its brand name or reputation?

Correct AnswerverifiedShow Answer

Give at least one argument for and one argument against protectionism.

Correct AnswerverifiedPeople who favor protectionism believe t...View AnswerShow Answer

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People who favor protectionism believe t...
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