Question 1

KFC in Japan sells tempura crispy strips.In northern England, it stresses gravy and potatoes, while in Thailand it offers fresh rice.In Holland instead of potatoes, KFC offers customers a potato and onion croquette.In France, KFC sells pastries alongside its chicken.These examples illustrate that KFC exhibits an understanding of and appreciation for the __________ of other societies.

Accepted Answer

A)  demographics
B)  symbols
C)  customs
D)  sensitivities
E)  selective perceptionF) A) and E)
G) None of the above

Question 2

The Japanese manufacture tractors for rice paddies.They are smaller than most U.S.tractors and perfect for a weekend farmer who wants to tend to a small garden.The tractors are not sold in the U.S.through any authorized channels, yet they are available in the U.S.at prices below the manufacturer's suggested retail price.What is the term for how these tractors are being sold?

Accepted Answer

A)  on the gray market
B)  under the counter
C)  over the counter
D)  through globalized channels
E)  through a distribution monopolyF) B) and D)
G) None of the above

Question 3

Four major trends affecting world trade in the past decade are formal economic integration and free trade among nations, global competition among global companies for global customers, the emergence of networked global marketspace, and

Accepted Answer

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

Question 4

Dumping refers to

Accepted Answer

A)  illegally disposing of unusable or damaged goods to avoid paying removal fees and/or taxes.
B)  when a firm sells damaged or unsellable goods below their original production cost.
C)  when a firm sells quality goods at significantly lower prices for the primary purpose of reducing inventory to make room for seasonal goods.
D)  when a firm sells quality goods at significantly lower prices for the primary purpose of reducing inventory to make room for newer or more expensive models.
E)  when a firm sells a product in a foreign country below its domestic price or below its actual cost.F) A) and E)
G) A) and C)

Question 5

A country's communication, transportation, financial, and distribution systems are considered to be its

Accepted Answer

A)  capital infrastructure.
B)  fixed-asset infrastructure.
C)  economic infrastructure.
D)  geopolitical network.
E)  network infrastructure.F) B) and E)
G) B) and D)

Question 6

A global market-entry strategy in which 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 foreign company and a local firm invest together to create a local business, it is referred to as

Accepted Answer

A)  licensing.
B)  joint venture.
C)  direct exporting.
D)  local assembly.
E)  local manufacturing.F) D) and E)
G) C) and E)

Question 7

Tricon was the restaurant division of PepsiCo until it was spun off in 1997.Since then Tricon has opened 6,000 KFC restaurants abroad.It has 158 in Indonesia and more than 500 restaurants in China.All are locally owned, and the owner pays a fee to Tricon.Tricon is engaged in

Accepted Answer

A)  contract assembly.
B)  a joint venture.
C)  contract manufacturing.
D)  a partnership.
E)  franchising.F) B) and C)
G) C) and D)

Question 8

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 embrace diversity.
C)  the firm's orientation toward and strategy for global markets and marketing.
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 B)
G) A) and E)

Question 9

Joint venture refers to

Accepted Answer

A)  a global marketing strategy that entails a domestic firm actually investing in and owning a foreign subsidiary or division.
B)  offering the right to a trademark, patent, trade secret, or similarly valued item of intellectual property in return for a royalty or fee.
C)  contracting with a foreign firm to manufacture products according to stated specifications.
D)  when a firm sells its domestically-produced goods in a foreign country through a paid intermediary.
E)  a global market-entry strategy in which 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 foreign company and a local firm invest together to create a local business.F) B) and C)
G) C) and D)

Question 10

FIGURE 7-9 
-Figure 7-9 above outlines the distribution channels through which a product manufactured in one country must travel to reach its destination in another country.Cubicle "C" refers to the __________, moving the product from one country to another.

Accepted Answer

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

Question 11

Generally, as the proportion of middle-income households in a country __________, the __________ a nation's purchasing power.

Accepted Answer

A)  increases; greater
B)  increases; less
C)  decreases; greater
D)  decreases; less
E)  There is no relationship between middle-income households and the nation's purchasing power.F) C) and D)
G) D) and E)

Question 12

The political and regulatory climate for marketing in a country or region of the world means not only identifying the current climate but determining

Accepted Answer

A)  how it conducts its macrofinancing.
B)  how its citizens budget their money.
C)  how long a favorable or unfavorable climate will last.
D)  how the countries stocks are performing on the stock exchange.
E)  how its population ranks in size compared to other countries.F) None of the above
G) A) and C)

Question 13

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

Accepted Answer

A)  global brand.
B)  international brand.
C)  multinational brand.
D)  transnational brand.
E)  multinational product category.F) C) and E)
G) A) and B)

Question 14

A(n)  __________ firm views the world as one market and emphasizes universal consumer needs and wants more than differences among cultures.

Accepted Answer

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

Question 15

The EU has benefited its member nations by providing the free flow of goods, services, capital, and labor across borders within the EU.It has created abundant marketing opportunities because it is no longer necessary to

Accepted Answer

A)  print material in multiple languages.
B)  continually monitor exchange rates.
C)  trade with communist countries.
D)  obey international trade regulations.
E)  use the American dollar as an economic standard.F) B) and D)
G) C) and D)

Question 16

Briefly describe the World Trade Organization (WTO) and its purpose.

Accepted Answer

The World Trade Organization (WTO) was f...

Question 17

A firm that views the world as consisting of unique parts and markets to each part differently is referred to as a(n)

Accepted Answer

A)  economic expansion firm.
B)  foreign expansion firm.
C)  international firm.
D)  multinational firm.
E)  transnational firm.F) C) and D)
G) None of the above

Question 18

FIGURE 7-1 
-As shown in Figure 7-1 above, protectionism

Accepted Answer

A)  "decrease world trade."
B)  "increase world trade."
C)  "limit exports."
D)  "limit imports."
E)  "doubles protectionism."F) D) and E)
G) A) and C)

Question 19

Personally or socially preferable modes of conduct or states of existence that tend to persist over time are referred to as __________.

Accepted Answer

A)  customs
B)  ethics
C)  values
D)  culture
E)  beliefsF) A) and B)
G) D) and E)

Question 20

Protectionism refers to

Accepted Answer

A)  the practice of purchasing products exclusively from a domestic market in order to shore up a nation's economy.
B)  the use of tariffs, quotas, and boycotts with the expressed intention of putting a foreign competitor out of business.
C)  the practice of shielding one or more sectors of a country's economy from foreign competition through the use of tariffs or quotas.
D)  a form of domestic imperialism that holds that only those products manufactured on one's home nation are of sufficient quality to warrant purchase.
E)  the practice of purchasing products exclusively from a domestic market in order to cause intentional harm to an adversarial nation.F) A) and B)
G) B) and E)

Exam 7: Understanding and Reaching Global Consumers and Markets

Dumping refers to

Correct Answer
verified

Tricon was the restaurant division of PepsiCo until it was spun off in 1997.Since then Tricon has opened 6,000 KFC restaurants abroad.It has 158 in Indonesia and more than 500 restaurants in China.All are locally owned, and the owner pays a fee to Tricon.Tricon is engaged in

Correct Answer
verified

Four major trends affecting world trade in the past decade are formal economic integration and free trade among nations, global competition among global companies for global customers, the emergence of networked global marketspace, and

Correct Answer
verified

Joint venture refers to

Correct Answer
verified

A country's communication, transportation, financial, and distribution systems are considered to be its

Correct Answer
verified

The EU has benefited its member nations by providing the free flow of goods, services, capital, and labor across borders within the EU.It has created abundant marketing opportunities because it is no longer necessary to

Correct Answer
verified

Correct Answer
verified

Briefly describe the World Trade Organization (WTO) and its purpose.

Correct Answer
verified
The World Trade Organization (WTO) was f...
View Answer

A global market-entry strategy in which 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 foreign company and a local firm invest together to create a local business, it is referred to as

Correct Answer
verified

FIGURE 7-9 -Figure 7-9 above outlines the distribution channels through which a product manufactured in one country must travel to reach its destination in another country.Cubicle "C" refers to the __________, moving the product from one country to another.

Correct Answer
verified

Correct Answer
verified

A firm that views the world as consisting of unique parts and markets to each part differently is referred to as a(n)

Correct Answer
verified

FIGURE 7-1 -As shown in Figure 7-1 above, protectionism

Correct Answer
verified

The political and regulatory climate for marketing in a country or region of the world means not only identifying the current climate but determining

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

Protectionism refers to

Correct Answer
verified

Personally or socially preferable modes of conduct or states of existence that tend to persist over time are referred to as __________.

Correct Answer
verified

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

Correct Answer
verified

A(n) __________ firm views the world as one market and emphasizes universal consumer needs and wants more than differences among cultures.

Correct Answer
verified

Generally, as the proportion of middle-income households in a country , the a nation's purchasing power.

Correct Answer
verified

Exam 7: Understanding and Reaching Global Consumers and Markets

Dumping refers to

Correct AnswerverifiedShow Answer

Tricon was the restaurant division of PepsiCo until it was spun off in 1997.Since then Tricon has opened 6,000 KFC restaurants abroad.It has 158 in Indonesia and more than 500 restaurants in China.All are locally owned, and the owner pays a fee to Tricon.Tricon is engaged in

Correct AnswerverifiedShow Answer

Four major trends affecting world trade in the past decade are formal economic integration and free trade among nations, global competition among global companies for global customers, the emergence of networked global marketspace, and

Correct AnswerverifiedShow Answer

Joint venture refers to

Correct AnswerverifiedShow Answer

A country's communication, transportation, financial, and distribution systems are considered to be its

Correct AnswerverifiedShow Answer

The EU has benefited its member nations by providing the free flow of goods, services, capital, and labor across borders within the EU.It has created abundant marketing opportunities because it is no longer necessary to

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Briefly describe the World Trade Organization (WTO) and its purpose.

Correct AnswerverifiedThe World Trade Organization (WTO) was f...View AnswerShow Answer

A global market-entry strategy in which 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 foreign company and a local firm invest together to create a local business, it is referred to as

Correct AnswerverifiedShow Answer

FIGURE 7-9 -Figure 7-9 above outlines the distribution channels through which a product manufactured in one country must travel to reach its destination in another country.Cubicle "C" refers to the __________, moving the product from one country to another.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

A firm that views the world as consisting of unique parts and markets to each part differently is referred to as a(n)

Correct AnswerverifiedShow Answer

FIGURE 7-1 -As shown in Figure 7-1 above, protectionism

Correct AnswerverifiedShow Answer

The political and regulatory climate for marketing in a country or region of the world means not only identifying the current climate but determining

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

Protectionism refers to

Correct AnswerverifiedShow Answer

Personally or socially preferable modes of conduct or states of existence that tend to persist over time are referred to 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 a(n)

Correct AnswerverifiedShow Answer

A(n) __________ firm views the world as one market and emphasizes universal consumer needs and wants more than differences among cultures.

Correct AnswerverifiedShow Answer

Generally, as the proportion of middle-income households in a country __________, the __________ a nation's purchasing power.

Correct AnswerverifiedShow Answer

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The World Trade Organization (WTO) was f...
View Answer

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Generally, as the proportion of middle-income households in a country , the a nation's purchasing power.

Correct Answer
verified