Question 1

The U.S.Rice Millers' Association claims that if the Japanese rice market were opened to imports by lowering __________,lower prices would save Japanese consumers $6 billion annually and the United States would gain a large share of the Japanese rice market.

Accepted Answer

A)  boycotts
B)  quotas
C)  sanctions
D)  tariffs
E)  subsidiesF) A) and B)
G) B) and D)

Question 2

In September 2009,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) A) and B)
G) B) and D)

Question 3

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

Accepted Answer

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

Question 4

Consumer ethnocentrism refers to

Accepted Answer

A)  the belief that all products that are foreign made are cheap and of poor quality.
B)  the belief that one should only purchase made by indigenous people groups in developing countries.
C)  the belief that all corporations are corrupt and consumers must look out for themselves.
D)  the tendency to believe that the only products that are of true quality are those that are manufactured in one's own country.
E)  the tendency to believe it is inappropriate,indeed immoral,to purchase foreign-made products.F) A) and D)
G) B) and E)

Question 5

Although Russia now has a free economy,there are still some problems with its financial and legal systems as well as with the notion of

Accepted Answer

A)  private property.
B)  product promotion.
C)  paid advertising.
D)  community property.
E)  foreign exchange rates.F) D) and E)
G) A) and C)

Question 6

According to Michael Porter's diamond in Figure 7-2 above,quadrant "B" represents

Accepted Answer

A)  factor conditions.
B)  related and supporting industries.
C)  demand conditions.
D)  managerial conditions.
E)  company strategy,structure,and rivalry.F) C) and D)
G) A) and E)

Question 7

Mary Kay,Inc.can be classified as which type of company when marketing its products around the world?

Accepted Answer

A)  multinational firm
B)  transnational firm
C)  international firm
D)  global marketing firm
E)  multidomestic firmF) D) and E)
G) All of the above

Question 8

The reverence that Japan shows towards its elderly is an example of that nation's __________.

Accepted Answer

A)  values
B)  beliefs
C)  customs
D)  religion
E)  cultural diversityF) A) and C)
G) C) and E)

Question 9

Coca-Cola,Gillette razors,and Wrigley's gum are selling virtually the same product in many countries.This is an example of which type of global marketing product/promotion strategy?

Accepted Answer

A)  product customization
B)  product adaptation
C)  product extension
D)  product integration
E)  product inventionF) A) and B)
G) C) and E)

Question 10

Which of the following statements about the dynamics of world trade is most accurate?

Accepted Answer

A)  Manufactured products and commodities account for only 75 percent of world trade.
B)  Services such as telecommunications,transportation,and banking account for three-fourths of world trade.
C)  The United States will replace China as the biggest country in terms of world trade by 2015.
D)  All nations participate equally in world trade.
E)  Dollar value of world trade has more than doubled in the past decade.F) A) and E)
G) A) and D)

Question 11

The monetary value of all products and services produced in a country during one year is referred to as the

Accepted Answer

A)  gross national production.
B)  gross domestic product.
C)  national monetary reserve.
D)  monetary domestic product.
E)  annual national product.F) B) and D)
G) B) and E)

Question 12

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 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.F) A) and C)
G) A) and B)

Question 13

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?

Accepted Answer

A)  exporting
B)  licensing
C)  joint venture
D)  direct investment
E)  franchisingF) None of the above
G) A) and E)

Question 14

The strategy used by firms that have as many different product variations,brand names,and advertising programs as countries in which they do business is referred to as a(n)

Accepted Answer

A)  ethnocentric strategy.
B)  transnational marketing strategy.
C)  global marketing strategy.
D)  multidomestic marketing strategy.
E)  multimarket strategy.F) C) and E)
G) A) and B)

Question 15

Global companies have five strategies for matching products and their promotion efforts to global markets.According to Figure 7-6 above,"E" refers to which type of strategy?

Accepted Answer

A)  product extension strategy
B)  product adaptation strategy
C)  dual adaptation strategy
D)  product invention strategy
E)  communication adaptation strategyF) A) and B)
G) D) and E)

Question 16

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) C) and E)
G) D) and E)

Question 17

The Malaysian government recently exchanged 20,000 tons of rice for an equivalent amount of Philippine corn.This transaction is an example of (a)

Accepted Answer

A)  countertrade.
B)  competitive advantage.
C)  balance of trade.
D)  quota.
E)  trade feedback.F) A) and E)
G) All of the above

Question 18

The World Trade Organization (WTO) refers to

Accepted Answer

A)  the world's largest banking institution responsible for establishing and maintaining equitable exchange rates for all member nations.
B)  the world's largest licensing institution responsible for the certification of products distributed to a global market.
C)  an institution that sets rules governing trade between its members through panels of trade experts who decide on trade disputes between members and issue binding decisions.
D)  a multinational trade organization composed of the world's wealthiest nations whose primary purpose is to aid in the economic growth of developing nations.
E)  a multinational trade organization comprised of the world's wealthiest nations whose primary purpose is to promote free trade economies.F) A) and D)
G) None of the above

Question 19

Figure 7-7 above outlines the distribution channels through which a product manufactured in one country must travel to reach its destination in another country."C" represents the

Accepted Answer

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

Question 20

The U.S.Commerce Department imposed additional duties of 31 percent to 250 percent on Chinese solar manufacturers of imported photovoltaic products after ruling 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)  dumpingF) B) and E)
G) A) and E)

Exam 7: Understanding and Reaching Global Consumers and Markets

Mary Kay,Inc.can be classified as which type of company when marketing its products around the world?

Correct AnswerverifiedShow Answer

The strategy used by firms that have as many different product variations,brand names,and advertising programs as countries in which they do business is referred to as a(n)

Correct AnswerverifiedShow Answer

A gray market refers to

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Figure 7-7 above outlines the distribution channels through which a product manufactured in one country must travel to reach its destination in another country."C" represents the

Correct AnswerverifiedShow Answer

Global companies have five strategies for matching products and their promotion efforts to global markets.According to Figure 7-6 above,"E" refers to which type of strategy?

Correct AnswerverifiedShow Answer

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

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

The monetary value of all products and services produced in a country during one year is referred to as the

Correct AnswerverifiedShow Answer

Although Russia now has a free economy,there are still some problems with its financial and legal systems as well as with the notion of

Correct AnswerverifiedShow Answer

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?

Correct AnswerverifiedShow Answer

In September 2009,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

Exporting refers to a global market-entry strategy

Correct AnswerverifiedShow Answer

The U.S.Rice Millers' Association claims that if the Japanese rice market were opened to imports by lowering __________,lower prices would save Japanese consumers $6 billion annually and the United States would gain a large share of the Japanese rice market.

Correct AnswerverifiedShow Answer

The World Trade Organization (WTO) refers to

Correct AnswerverifiedShow Answer

The reverence that Japan shows towards its elderly is an example of that nation's __________.

Correct AnswerverifiedShow Answer

The Malaysian government recently exchanged 20,000 tons of rice for an equivalent amount of Philippine corn.This transaction is an example of (a)

Correct AnswerverifiedShow Answer

Which of the following statements about the dynamics of world trade is most accurate?

Correct AnswerverifiedShow Answer

Consumer ethnocentrism refers to

Correct AnswerverifiedShow Answer

According to Michael Porter's diamond in Figure 7-2 above,quadrant "B" represents

Correct AnswerverifiedShow Answer

Coca-Cola,Gillette razors,and Wrigley's gum are selling virtually the same product in many countries.This is an example of which type of global marketing product/promotion strategy?

Correct AnswerverifiedShow Answer

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