Question 1

The fluctuation in exchange rates results in:

Accepted Answer

A)  a country employing additional tariffs and quotas on imports to manage fluctuations. 
B)  a nation's currency becoming more or less valuable compared with those of other nations. 
C)  the possibility of an economy reaching short-run equilibrium at levels below or above full employment. 
D)  a relatively rapid economic growth and periods of relative stagnation or decline. 
A)  a country employing additional tariffs and quotas on imports to manage fluctuations. 
B)  a nation's currency becoming more or less valuable compared with those of other nations. 
C)  the possibility of an economy reaching short-run equilibrium at levels below or above full employment. 
D)  a relatively rapid economic growth and periods of relative stagnation or decline. B

Question 2

Describe the World Trade Organization (WTO). Discuss its role and policies in regulating trade barriers.

Accepted Answer

The World Trade Organization (WTO) is a 159-member organization that succeeds GATT. The WTO oversees GATT agreements, serves as a forum for trade negotiations, and mediates trade disputes. It also monitors national trade policies and works to reduce trade barriers throughout the world. Unlike GATT, WTO decisions are binding. Countries that seek to become members of the WTO must participate in rigorous rounds of negotiations that can last several years.
The WTO policy initiatives include liberalizing world financial services, telecommunications, and maritime markets. Trade officials have not agreed on the direction for the WTO. Big differences between developed and developing nations create a major roadblock to its progress, and its activities thus far have focused more on dispute resolution through its Dispute Settlement Body than on reducing trade barriers. However, the WTO also provides important technical assistance and training for the governments of developing countries.

Question 3

Franchising is a low-risk way to enter a foreign market as it offers a proven concept.

Accepted Answer

A) True 
 B)False  True

Question 4

What is exporting? List out the various alternatives available for the first-time exporters to enter foreign markets.

Accepted Answer

Exporting is a basic form of global mark

Question 5

An export-trading company provides the first-time exporter with expertise in locating foreign buyers and ensuring that its goods meet local labeling and testing laws.

Accepted Answer

A) True 
 B)False

Question 6

What is foreign licensing? What advantages does it offer over exporting and direct investment?

Accepted Answer

Foreign licensing is a contractual agree

Question 7

Modifying the control panel of a washing machine to accommodate for those cultures that read from right to left would be considered a form of product invention.

Accepted Answer

A) True 
 B)False

Question 8

An organization that provides first-time exporters with expertise in locating foreign buyers, handling paperwork, and conforming to local labeling and testing laws is called a(n):

Accepted Answer

A)  export facilitator. 
B)  export-trading company. 
C)  trade assistance corporation. 
D)  export-management company. 
A)  export facilitator. 
B)  export-trading company. 
C)  trade assistance corporation. 
D)  export-management company.

Question 9

A regional business association has asked you to participate in a panel discussion about NAFTA. Your company has benefited greatly from this accord, so you plan to strongly defend it. However, you must prepare to counter common criticisms of NAFTA, including:

Accepted Answer

A)  It may encourage dumping of U.S. goods into Canada. 
B)  It may cause the loss of U.S. jobs to cheap labor in Mexico. 
C)  It is leading to controversial political integration among the member nations. 
D)  It includes an unwieldy number of member nations. 
E)  It has not been in existence long enough to have an effect. 
A)  It may encourage dumping of U.S. goods into Canada. 
B)  It may cause the loss of U.S. jobs to cheap labor in Mexico. 
C)  It is leading to controversial political integration among the member nations. 
D)  It includes an unwieldy number of member nations. 
E)  It has not been in existence long enough to have an effect.

Question 10

A nation's basic system of transportation networks, communication systems, and energy facilities is referred to as its infrastructure.

Accepted Answer

A) True 
 B)False

Question 11

In the 1800s, more than 90 percent of Americans worked in the _____ industry.

Accepted Answer

A)  shipping 
B)  automobile 
C)  service 
D)  farming 
A)  shipping 
B)  automobile 
C)  service 
D)  farming

Question 12

Subcontracting with a local company provides protection from import duties.

Accepted Answer

A) True 
 B)False

Question 13

A publisher of children's picture books is a family business that has decided to export their products to foreign bookstores. The family members expect to be very involved in all the company's decisions. Which model of first-time exporting would best fit this family business?

Accepted Answer

A)  An offset agreement with a major international company 
B)  An export-management company 
C)  An export-trading company 
D)  A subcontractor on a large foreign project 
E)  Direct investing in a bookstore in another country 
A)  An offset agreement with a major international company 
B)  An export-management company 
C)  An export-trading company 
D)  A subcontractor on a large foreign project 
E)  Direct investing in a bookstore in another country

Question 14

Outboard motors that are sold in the United States primarily as recreational products may be sold in a foreign country as basic transportation equipment. Such a practice is an example of product adaptation.

Accepted Answer

A) True 
 B)False

Question 15

A company looking to expand internationally with little risk would choose:

Accepted Answer

A)  exporting. 
B)  foreign licensing. 
C)  subcontracting. 
D)  joint ventures. 
A)  exporting. 
B)  foreign licensing. 
C)  subcontracting. 
D)  joint ventures.

Question 16

Tru-Shine is a cleaning company in the United States that offers various cleaning products and services. After gaining popularity in the United States, the company decided to expand its business in other North American nations. The company entered into an agreement with some local cleaning companies in Canada where the local companies would sell its products and services under the same trade name. Tru-Shine also agreed to provide the training and necessary equipments and supplies to the local companies. In this example, the strategy used by Tru-Shine for entering foreign markets is an example of _____.

Accepted Answer

A)  sole sourcing 
B)  value engineering 
C)  franchising 
D)  direct investment 
A)  sole sourcing 
B)  value engineering 
C)  franchising 
D)  direct investment

Question 17

The three basic strategies for entering foreign markets are exporting, contractual agreements, and international direct investment.

Accepted Answer

A) True 
 B)False

Question 18

As the CEO of a corporation with customers in every part of the globe, you hope to see more of the world's nations become members of the WTO. This would benefit firms like yours because the World Trade Organization:

Accepted Answer

A)  serves as a forum for trade negotiations. 
B)  mediates trade disputes. 
C)  makes nonbinding but highly respected decisions. 
D)  provides technical assistance to developing countries. 
E)  monitors national trade policies. 
A)  serves as a forum for trade negotiations. 
B)  mediates trade disputes. 
C)  makes nonbinding but highly respected decisions. 
D)  provides technical assistance to developing countries. 
E)  monitors national trade policies.

Question 19

Honda, a Japanese firm, builds a factory in Alabama to make minivans to be marketed in the United States. Which of the following strategies of entering into a foreign market is best represented by this example?

Accepted Answer

A)  Subcontracting 
B)  Franchising 
C)  International direct investment 
D)  Licensing 
A)  Subcontracting 
B)  Franchising 
C)  International direct investment 
D)  Licensing

Question 20

Foreign licensing offers advantages to the manufacturer, such as:

Accepted Answer

A)  low financial expenditures. 
B)  avoidance of import tariffs. 
C)  less risk than exporting products. 
D)  access to foreign partner's distribution channels. 
A)  low financial expenditures. 
B)  avoidance of import tariffs. 
C)  less risk than exporting products. 
D)  access to foreign partner's distribution channels.

The fluctuation in exchange rates results in:

Describe the World Trade Organization (WTO). Discuss its role and policies in regulating trade barriers.

Franchising is a low-risk way to enter a foreign market as it offers a proven concept.

What is exporting? List out the various alternatives available for the first-time exporters to enter foreign markets.

An export-trading company provides the first-time exporter with expertise in locating foreign buyers and ensuring that its goods meet local labeling and testing laws.

What is foreign licensing? What advantages does it offer over exporting and direct investment?

Modifying the control panel of a washing machine to accommodate for those cultures that read from right to left would be considered a form of product invention.

An organization that provides first-time exporters with expertise in locating foreign buyers, handling paperwork, and conforming to local labeling and testing laws is called a(n):

A regional business association has asked you to participate in a panel discussion about NAFTA. Your company has benefited greatly from this accord, so you plan to strongly defend it. However, you must prepare to counter common criticisms of NAFTA, including:

A nation's basic system of transportation networks, communication systems, and energy facilities is referred to as its infrastructure.

In the 1800s, more than 90 percent of Americans worked in the _____ industry.

Subcontracting with a local company provides protection from import duties.

A publisher of children's picture books is a family business that has decided to export their products to foreign bookstores. The family members expect to be very involved in all the company's decisions. Which model of first-time exporting would best fit this family business?

Outboard motors that are sold in the United States primarily as recreational products may be sold in a foreign country as basic transportation equipment. Such a practice is an example of product adaptation.

A company looking to expand internationally with little risk would choose:

The three basic strategies for entering foreign markets are exporting, contractual agreements, and international direct investment.

As the CEO of a corporation with customers in every part of the globe, you hope to see more of the world's nations become members of the WTO. This would benefit firms like yours because the World Trade Organization:

Honda, a Japanese firm, builds a factory in Alabama to make minivans to be marketed in the United States. Which of the following strategies of entering into a foreign market is best represented by this example?

Foreign licensing offers advantages to the manufacturer, such as:

Marketing: the Art of Satisfying Customers

Strategic Planning in Contemporary Marketing

The Marketing Environment, Ethics, and Social Responsibility

E-Business: Managing the Customer Experience

Social Media: Living in the Connected World

Consumer Behavior

Business Markets and Buying Behavior

Market Segmentation, Targeting, and Positioning

Marketing Research

Product and Branding Concepts

Developing and Managing Products

Pricing Concepts

Pricing Strategies

Distribution Channels and Supply Chain Management

Retailing and Direct Marketing

Integrated Marketing Communications

Personal Selling and Sales Promotion

Creating A Marketing Plan

Financial Analysis In Marketing

Your Career In Marketing

Filters

Exam 8: Global Marketing

The fluctuation in exchange rates results in:

Describe the World Trade Organization (WTO). Discuss its role and policies in regulating trade barriers.

Franchising is a low-risk way to enter a foreign market as it offers a proven concept.

What is exporting? List out the various alternatives available for the first-time exporters to enter foreign markets.

An export-trading company provides the first-time exporter with expertise in locating foreign buyers and ensuring that its goods meet local labeling and testing laws.

What is foreign licensing? What advantages does it offer over exporting and direct investment?

Modifying the control panel of a washing machine to accommodate for those cultures that read from right to left would be considered a form of product invention.

An organization that provides first-time exporters with expertise in locating foreign buyers, handling paperwork, and conforming to local labeling and testing laws is called a(n):

A regional business association has asked you to participate in a panel discussion about NAFTA. Your company has benefited greatly from this accord, so you plan to strongly defend it. However, you must prepare to counter common criticisms of NAFTA, including:

A nation's basic system of transportation networks, communication systems, and energy facilities is referred to as its infrastructure.

In the 1800s, more than 90 percent of Americans worked in the _____ industry.

Subcontracting with a local company provides protection from import duties.

A publisher of children's picture books is a family business that has decided to export their products to foreign bookstores. The family members expect to be very involved in all the company's decisions. Which model of first-time exporting would best fit this family business?

Outboard motors that are sold in the United States primarily as recreational products may be sold in a foreign country as basic transportation equipment. Such a practice is an example of product adaptation.

A company looking to expand internationally with little risk would choose:

The three basic strategies for entering foreign markets are exporting, contractual agreements, and international direct investment.

As the CEO of a corporation with customers in every part of the globe, you hope to see more of the world's nations become members of the WTO. This would benefit firms like yours because the World Trade Organization:

Honda, a Japanese firm, builds a factory in Alabama to make minivans to be marketed in the United States. Which of the following strategies of entering into a foreign market is best represented by this example?

Foreign licensing offers advantages to the manufacturer, such as:

Marketing: the Art of Satisfying Customers

Strategic Planning in Contemporary Marketing

The Marketing Environment, Ethics, and Social Responsibility

E-Business: Managing the Customer Experience

Social Media: Living in the Connected World

Consumer Behavior

Business Markets and Buying Behavior

Market Segmentation, Targeting, and Positioning

Marketing Research

Product and Branding Concepts

Developing and Managing Products

Pricing Concepts

Pricing Strategies

Distribution Channels and Supply Chain Management

Retailing and Direct Marketing

Integrated Marketing Communications

Personal Selling and Sales Promotion

Creating A Marketing Plan

Financial Analysis In Marketing

Your Career In Marketing

Filters