Question 1

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

Accepted Answer

A)  The foreign country prefers it to exporting because it gains local employment.
B)  It provides an exemption from domestic trade regulations.
C)  There is an increase in potential profit compared with direct investment.
D)  The licensor retains control of its product.
E)  The licensor is protected from creating a potential competitor.F) C) and E)
G) D) and E)

Question 2

The study of similarities and differences among consumers in two or more nations or societies is referred to as __________.

Accepted Answer

A)  market synthesis
B)  cross-cultural analysis
C)  international sociographics
D)  transnational anthropology
E)  multicultural ethnocentrismF) A) and D)
G) C) and D)

Question 3

Which of the following countries is the world's leading importer?

Accepted Answer

A)  United States
B)  China
C)  India
D)  Germany
E)  JapanF) A) and D)
G) C) and D)

Question 4

Customs refer to

Accepted Answer

A)  what is considered normal and expected about the way people do things in a specific country.
B)  those actions or activities within a community that are unique or distinctly different from any other group.
C)  actions or behaviors that are repeated over time and carry a specific meaning to a unique group,nationality,or ethnicity.
D)  traditions among a group of people,a nation,or ethnicity that affect their purchase behaviors.
E)  what would be considered unusual or unexpected,and even unacceptable,about the way people do things in a specific country.F) A) and B)
G) A) and C)

Question 5

To eliminate the need to continually monitor currency exchange rates,16 of the countries in the European Union (EU) have adopted a common currency,which is called the __________.

Accepted Answer

A)  pound
B)  franc
C)  euro
D)  mark
E)  dollarF) A) and E)
G) A) and B)

Question 6

Mars,America's second-largest candy company,began doing business in Russia in the late 1980s.The Snickers bar is one of the top selling candies in Russia and is marketed in much the same way as it is in the United States.What type of global company is Mars?

Accepted Answer

A)  an international firm
B)  a multidomestic firm
C)  a transnational firm
D)  a meganational firm
E)  a multinational firmF) A) and E)
G) A) and D)

Question 7

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) __________;and (4) direct investment.

Accepted Answer

A)  franchising
B)  joint venture
C)  cooperative
D)  multiparty initiative
E)  mutual investmentF) A) and D)
G) C) and E)

Question 8

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) A) and B)
G) D) and E)

Question 9

3M Company executives were perplexed when the company's Scotch-Brite floor-cleaning product initially produced lukewarm sales in the Philippines.A Filipino employee explained that consumers generally clean floors by pushing coconut shells around with their feet.3M changed the shape of the pad to a foot and sales soared.3M changed its product in response to a Filipino __________.

Accepted Answer

A)  value
B)  belief
C)  custom
D)  idiosyncrasy
E)  demographic patternF) A) and E)
G) B) and D)

Question 10

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) B) and E)
G) B) and C)

Question 11

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

Accepted Answer

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

Question 12

The belief that aspects of one's culture are superior to another's is referred to as

Accepted Answer

A)  cultural ethnocentricity.
B)  consumer ethnocentrism.
C)  cultural commitment.
D)  cross-cultural bias.
E)  cultural imperialism.F) A) and B)
G) C) and E)

Question 13

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

Accepted Answer

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

Question 14

__________ 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) C) and E)
G) A) and B)

Question 15

A commercial depicts a young son asking his mother why they have to move.The mother's response indicates that because Americans are buying products made in other countries,the boy's father has lost his job.This commercial reflects an attitude of

Accepted Answer

A)  cultural semiotics.
B)  the trade feedback effect.
C)  protectionism.
D)  cultural ethnocentricity.
E)  consumer ethnocentrism.F) None of the above
G) C) and D)

Question 16

Strategic alliances refer to

Accepted Answer

A)  multinational firms that have as many different product variations,brand names,and advertising programs as countries in which they do business.
B)  when 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.
C)  when a domestic firm actually invests in and owns a foreign subsidiary or division.
D)  agreements between two or more independent firms to cooperate for the purpose of achieving common goals such as a competitive advantage or customer value.
E)  the right to a trademark,patent,trade secret,or similarly valued item of intellectual property of one firm in return for a royalty or fee from another firm.F) A) and B)
G) All of the above

Question 17

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

Accepted Answer

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

Question 18

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) B) and D)
G) A) and D)

Question 19

Global companies have five strategies for matching products and their promotion efforts to global markets.According to Figure 7-6 above,"C" 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) B) and D)
G) A) and D)

Question 20

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 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 E)
G) B) and C)

Exam 7: Understanding and Reaching Global Consumers and Markets

__________ 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

To eliminate the need to continually monitor currency exchange rates,16 of the countries in the European Union (EU) have adopted a common currency,which is called the __________.

Correct Answer
verified

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) __________;and (4) direct investment.

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

Which of the following countries is the world's leading importer?

Correct Answer
verified

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 Answer
verified

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 Answer
verified

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

Correct Answer
verified

Mars,America's second-largest candy company,began doing business in Russia in the late 1980s.The Snickers bar is one of the top selling candies in Russia and is marketed in much the same way as it is in the United States.What type of global company is Mars?

Correct Answer
verified

Customs refer to

Correct Answer
verified

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

Correct Answer
verified

A commercial depicts a young son asking his mother why they have to move.The mother's response indicates that because Americans are buying products made in other countries,the boy's father has lost his job.This commercial reflects an attitude of

Correct Answer
verified

The belief that aspects of one's culture are superior to another's is referred to as

Correct Answer
verified

The study of similarities and differences among consumers in two or more nations or societies is referred to as __________.

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

Strategic alliances refer to

Correct Answer
verified

Exam 7: Understanding and Reaching Global Consumers and Markets

__________ 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

To eliminate the need to continually monitor currency exchange rates,16 of the countries in the European Union (EU) have adopted a common currency,which is called the __________.

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) __________;and (4) direct investment.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following countries is the world's leading importer?

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 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

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

Mars,America's second-largest candy company,began doing business in Russia in the late 1980s.The Snickers bar is one of the top selling candies in Russia and is marketed in much the same way as it is in the United States.What type of global company is Mars?

Correct AnswerverifiedShow Answer

Customs refer to

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A commercial depicts a young son asking his mother why they have to move.The mother's response indicates that because Americans are buying products made in other countries,the boy's father has lost his job.This commercial reflects an attitude of

Correct AnswerverifiedShow Answer

The belief that aspects of one's culture are superior to another's is referred to as

Correct AnswerverifiedShow Answer

The study of similarities and differences among consumers in two or more nations or societies is referred to as __________.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Strategic alliances refer to

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
verified

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

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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