Question 1

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

Question 2

The four largest exporters to the United States are

Accepted Answer

A)  China,Canada,Mexico,and Japan.
B)  Japan,Germany,Brazil,and Canada.
C)  China,Brazil,Japan,and Germany.
D)  Mexico,Argentina,Brazil,and Venezuela.
E)  England,Canada,Australia,and New Zealand.F) A) and E)
G) A) and B)

Question 3

The practice where a translated word or phrase is retranslated into the original language by a different interpreter to catch errors is referred to as

Accepted Answer

A)  locution.
B)  heuristics.
C)  transliteration.
D)  back translation.
E)  cross-cultural paraphrasing.F) A) and E)
G) A) and B)

Question 4

Even though Exxon adapts its gasoline blends for different countries based on climate,the promotion message is unchanged.The wording of that slogan is "__________."

Accepted Answer

A)  Put a Tiger in Your Tank
B)  Put the Pedal to the Metal
C)  Buy American Fuel
D)  Keep America Driving
E)  Power to the PistonsF) A) and D)
G) B) and C)

Question 5

What global market-entry strategy involves slightly more risk than indirect exporting for a company but also opens the door to increased profits?

Accepted Answer

A)  direct exporting
B)  licensing
C)  cooperative
D)  joint venture
E)  direct investmentF) A) and B)
G) C) and D)

Question 6

All of the following are advantages of licensing EXCEPT:

Accepted Answer

A)  the foreign country gains employment by having the product manufactured locally.
B)  the licensee gains information that allows it to start with a competitive advantage.
C)  the low risk to the company granting the license.
D)  the licensor's brand name can never be harmed as a result of the licensee.
E)  the capital-free entry into a foreign country.F) A) and D)
G) A) and E)

Question 7

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

Accepted Answer

A)  it conducts its macrofinancing.
B)  its citizens budget their money.
C)  long a favorable or unfavorable climate will last.
D)  the country's stocks are performing on the stock exchange.
E)  its population ranks in size compared to other countries.F) C) and E)
G) A) and E)

Question 8

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.Channels within a foreign nation can be very long or surprisingly short.Which letter in the figure represents these channels?

Accepted Answer

A)  "A"
B)  "B"
C)  "C"
D)  "D"
E)  "E"F) C) and E)
G) A) and B)

Question 9

Direct exporting 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)  using additional parties when a firm sells its domestically produced goods in another country.
E)  when a firm sells its domestically produced goods in a foreign country without intermediaries.F) A) and E)
G) C) and E)

Question 10

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

Accepted Answer

A)  No accurate data have been made available from the WTO for trade imports and exports.
B)  The volume of imports and exports has consistently decreased.
C)  U.S.imports and U.S.exports have been about equal,indicating balanced trade.
D)  U.S.exports have exceeded U.S.imports,indicating a continuing trade surplus.
E)  The volume of both U.S.exports and U.S.imports has increased significantly.F) B) and D)
G) C) and E)

Question 11

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

Question 12

Changes in the products Americans buy and sell,additional jobs,and an improved standard of living are all effects of

Accepted Answer

A)  an increase in imports and an increase of exports.
B)  an increase in imports and a decrease in exports.
C)  a decrease in imports and a decrease in exports.
D)  a state of equilibrium between imports and exports.
E)  the reversal of importance between the services sector and the manufacturing sector.F) A) and B)
G) A) and C)

Question 13

Michael Porter has identified four key elements in a nation's competitive advantage: __________;demand conditions;related and supporting industries;and company strategy,structure and rivalry.

Accepted Answer

A)  industry composition
B)  size of market
C)  governmental regulation
D)  suppliers
E)  factor conditionsF) None of the above
G) D) and E)

Question 14

Cross-cultural analysis refers to the study of

Accepted Answer

A)  the subgroups within the larger,or national,culture with unique values,ideas,and attitudes.
B)  the set of values,ideas,and attitudes that are learned and shared among the consumers of a country.
C)  the similarities and differences among consumers in two or more nations or societies.
D)  the buying behaviors within a given nation to identify similarities and differences.
E)  the buying behaviors within a given nation that links a person's actions to the cultural group with which he or she identify most.F) A) and B)
G) A) and C)

Question 15

Standards for registration and certification of a manufacturer's quality management and quality assurance system are referred to as__________ standards.

Accepted Answer

A)  UN 2012
B)  NAICS
C)  NAFTA
D)  ISO 9000
E)  ISO 14000F) A) and E)
G) A) and D)

Question 16

The __________ arrangement between Ericsson,a Swedish telecommunications firm,and CGCT,a French switch maker,enabled them together to beat out AT&T for a $100 million French contract.

Accepted Answer

A)  franchising
B)  licensing
C)  joint venture
D)  direct investment
E)  exportingF) A) and D)
G) C) and D)

Question 17

Since 1963,Mary Kay,Inc.'s guiding principle has been based on __________.

Accepted Answer

A)  the Consumer Bill of Rights
B)  the Golden Rule
C)  caveat emptor
D)  the American Marketing Association Statement of Ethics
E)  maximizing profits so long as the firm "stays within the rules"F) A) and C)
G) D) and E)

Question 18

The economic argument for protectionism is that it

Accepted Answer

A)  protects a nation's political security.
B)  encourages economic reliance on foreign countries.
C)  inhibits the development of domestic industries.
D)  creates opportunities for the outsourcing of domestic jobs.
E)  creates a more favorable environment for a global economy.F) A) and E)
G) A) and D)

Question 19

Which of the following statements about the relationship between the imports into the U.S.and the exports from the U.S.during the last 30 years is most accurate?

Accepted Answer

A)  No accurate data has been made available from the WTO on trade imports and exports.
B)  The volume of both imports and exports has consistently decreased.
C)  Imports into the U.S.and exports have been about equal,indicating balanced trade.
D)  Exports have exceeded imports,indicating a continuing balance of trade surplus.
E)  Imports have exceeded exports,indicating a continuing balance of trade deficit.F) B) and C)
G) A) and B)

Question 20

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

Accepted Answer

A)  11
B)  16
C)  20
D)  28
E)  32F) B) and D)
G) C) and D)

Exam 7: Understanding and Reaching Global Consumers and Markets

All of the following are advantages of licensing EXCEPT:

Correct AnswerverifiedShow Answer

What global market-entry strategy involves slightly more risk than indirect exporting for a company but also opens the door to increased profits?

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

Which of the following statements about the relationship between the imports into the U.S.and the exports from the U.S.during the last 30 years is most accurate?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Standards for registration and certification of a manufacturer's quality management and quality assurance system are referred to as__________ standards.

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

Since 1963,Mary Kay,Inc.'s guiding principle has been based on __________.

Correct AnswerverifiedShow Answer

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

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.Channels within a foreign nation can be very long or surprisingly short.Which letter in the figure represents these channels?

Correct AnswerverifiedShow Answer

The __________ arrangement between Ericsson,a Swedish telecommunications firm,and CGCT,a French switch maker,enabled them together to beat out AT&T for a $100 million French contract.

Correct AnswerverifiedShow Answer

Changes in the products Americans buy and sell,additional jobs,and an improved standard of living are all effects of

Correct AnswerverifiedShow Answer

The practice where a translated word or phrase is retranslated into the original language by a different interpreter to catch errors is referred to as

Correct AnswerverifiedShow Answer

The economic argument for protectionism is that it

Correct AnswerverifiedShow Answer

The four largest exporters to the United States are

Correct AnswerverifiedShow Answer

Cross-cultural analysis refers to the study of

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Even though Exxon adapts its gasoline blends for different countries based on climate,the promotion message is unchanged.The wording of that slogan is "__________."

Correct AnswerverifiedShow Answer

Michael Porter has identified four key elements in a nation's competitive advantage: __________;demand conditions;related and supporting industries;and company strategy,structure and rivalry.

Correct AnswerverifiedShow Answer

Direct exporting refers to

Correct AnswerverifiedShow Answer

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