Exam 8: Global Marketing

The ability to adapt products to local preferences and culture is the key to success in foreign markets.

International direct investment does not provide a competitive advantage because of its high risk potential and high involvement characteristics.

A company has recently instituted a political risk assessment (PRA) unit that keeps track of situations of international unrest. Which advantage does the new PRA unit offer?​

Manufactured goods account for the largest share of U.S. production output today.

A consumer food product company is looking to quickly and firmly establish a presence in a new market. What is the best market entry strategy?

Manufacturers control marketing and distribution of their products while selling them through an export-trading company.

One concern about franchising is that poor service or quality from the foreign partner could damage the brand.

Licensing is an attractive entry strategy for small firms as it does not involve capital outlays.

Nearly four of every five dollars in the United States' gross domestic product comes from services such as banking, entertainment, business and technical services, retailing, and communications.

Which of the following is true regarding the North American Free Trade Agreement (NAFTA)?

_____ is a form of global marketing that involves a continuous effort in marketing a firm's merchandise to customers in other countries.

Subcontracting is a type of contractual agreement that assigns the production of goods or services to local or smaller firms.

A small, U.S. electronics firm learned the dangers of ______ as a market entry strategy. The factory in China that was producing its goods had terrible working conditions.

Luca owns paper making business. His products feature pressed flowers and a natural edge. He has had great success selling his products in Italy and would like to now expand overseas to the United States. Luca doesn't have a lot of money to invest in this overseas expansion. Luca's best option for a market entry strategy would be:

Which of the following firms is ranked as the world's largest company in terms of annual sales?

Which of the following actions generally helps marketers encounter new products, new approaches to distribution, or clever new promotional ideas?

A(n) _____ buys products from domestic producers and resells them abroad.

U.S. imports mainly include crude oil, machines, consumer electronics, and passenger cars.

Liberty Production is a small company that produces flags and other patriotic-themed items such as banners. Historically, they have focused on the United States market but recently recognized they could enhance sales by creating patriotic items for other countries. They would like to keep their expenses low as they expand internationally and have reached an agreement with a company that will purchase the merchandise and resell the items to international customers. Liberty Production will not have any control over marketing or distribution activities but they appreciate the simplicity of this business model. Liberty Production is most likely utilizing a(n) ________ to expand their global footprint.

Crazy Crackerz is a very successful cracker and chip company known for its outrageous flavors. The company is ready to sell their products abroad but knows their cracker and chip flavors may need to be customized in each foreign market. Crazy Crackerz has a significant amount of money and resources to invest in this foreign expansion. The company should: