Question 1

Which of the following factors is most likely to be included in the political environment?

Accepted Answer

A)  Inflation levels in different countries 
B)  Labor conditions in different countries 
C)  Exchange rate fluctuations in a country 
D)  Level of natural resources in a country 
A)  Inflation levels in different countries 
B)  Labor conditions in different countries 
C)  Exchange rate fluctuations in a country 
D)  Level of natural resources in a country

Question 2

Cremant Cellars is a family-owned winery located in the Loire region of France. Cremant is a sparkling wine and the winery owners are interested in gaining access to markets outside of France as a way to generate alternative sources of revenue. The owner, Jacques, has met with several firms and decided to work with Export Partners, a firm that has expertise in obtaining business with alcohol distributors across Europe as well as Asia and the United States. Export Partners will also provide assistance in managing the necessary paperwork, complying with local laws and regulations regarding proper labeling and food/beverage testing. Export Partners is most likely serving as a(n) ___________ to assist Cremant Cellars with their international expansion.

Accepted Answer

A)  export-management company (EM
C)  
B)  export-trading company (ET
C)  
C)  subcontractor 
D)  franchisor 
A)  export-management company (EM
C)  
B)  export-trading company (ET
C)  
C)  subcontractor 
D)  franchisor

Question 3

A manufacturing firm retains more control over the export process when it deals with an export-trading company rather than dealing with an export-management company.

Accepted Answer

A) True 
 B)False

Question 4

A nation's basic system of transportation networks, communication systems, and energy facilities form a part of its _____ environment.

Accepted Answer

A)  social 
B)  political 
C)  legal 
D)  economic 
A)  social 
B)  political 
C)  legal 
D)  economic

Question 5

The goal of the European Union, a multinational economic community, is to:

Accepted Answer

A)  liberalize the world financial services, telecommunications, and maritime markets. 
B)  help American workers, farmers, and small businesses thrive and grow. 
C)  remove all barriers to free trade among its members, and standardization of currencies and regulations. 
D)  extend free-trade benefits to most nations around the world. 
A)  liberalize the world financial services, telecommunications, and maritime markets. 
B)  help American workers, farmers, and small businesses thrive and grow. 
C)  remove all barriers to free trade among its members, and standardization of currencies and regulations. 
D)  extend free-trade benefits to most nations around the world.

Question 6

Establishing a free-trade area is the simplest way to achieve multinational economic integration.

Accepted Answer

A) True 
 B)False

Question 7

The North American Free Trade Agreement (NAFTA) is a trade accord that removes trade barriers among:

Accepted Answer

A)  countries in Western hemisphere and North, Central, and South America. 
B)  Canada, Mexico, and the United States. 
C)  the United States, the Dominican Republic, and Central American nations. 
D)  the United States and the European Union. 
A)  countries in Western hemisphere and North, Central, and South America. 
B)  Canada, Mexico, and the United States. 
C)  the United States, the Dominican Republic, and Central American nations. 
D)  the United States and the European Union.

Question 8

When a group of nations agree to buy and sell goods among themselves by abolishing tariffs and trade restrictions, the nations have created a _____.

Accepted Answer

A)  customary market 
B)  cooperation council 
C)  political union 
D)  free-trade area 
A)  customary market 
B)  cooperation council 
C)  political union 
D)  free-trade area

Question 9

Foreign licensing agreements are valid for a specified time period after which they need to be revised or renewed.

Accepted Answer

A) True 
 B)False

Question 10

The WTO makes binding decisions in mediating disputes and reduces trade barriers.

Accepted Answer

A) True 
 B)False

Question 11

The activities of the World Trade Organization thus far have focused on dispute resolution rather than reducing trade barriers as:

Accepted Answer

A)  the main aim of this organization is to increase the level of production in the developing nations. 
B)  the differences between the developed and developing nations have created a major roadblock to its progress. 
C)  the organization does not have the authority to make binding decisions on trade policies and trade barriers. 
D)  the organization is attempting to increase profit levels for developed nations. 
A)  the main aim of this organization is to increase the level of production in the developing nations. 
B)  the differences between the developed and developing nations have created a major roadblock to its progress. 
C)  the organization does not have the authority to make binding decisions on trade policies and trade barriers. 
D)  the organization is attempting to increase profit levels for developed nations.

Question 12

What is the European Union? What are its goals?

Accepted Answer

The European Union (EU) is a customs uni

Question 13

Alumna, a ceramics-manufacturing company in Denmark, is trying to market its products in Bulgaria. The company has assigned the production of its goods to a local company in Bulgaria to take advantage of the low labor costs and also to avoid the import duties on the products. In this case, the strategy used by Alumna for entering foreign markets is an example of _____.

Accepted Answer

A)  subcontracting 
B)  licensing 
C)  sole sourcing 
D)  exporting 
A)  subcontracting 
B)  licensing 
C)  sole sourcing 
D)  exporting

Question 14

Nike is a global brand, selling the same athletic shoes in each country. The company's advertisements change in some countries, however. For example, Nike ran ads in China to change the perception that "running is boring." Nike is using:

Accepted Answer

A)  a promotion adaptation strategy. 
B)  a dual adaptation strategy. 
C)  a product adaptation strategy. 
D)  a straight extension strategy. 
A)  a promotion adaptation strategy. 
B)  a dual adaptation strategy. 
C)  a product adaptation strategy. 
D)  a straight extension strategy.

Question 15

Which of the following is one of the major policy initiatives of the WTO?

Accepted Answer

A)  Increasing the average level of education worldwide 
B)  Liberalizing world financial services 
C)  Promoting and protecting the environment 
D)  Regulating automobile production by less-advanced nations 
A)  Increasing the average level of education worldwide 
B)  Liberalizing world financial services 
C)  Promoting and protecting the environment 
D)  Regulating automobile production by less-advanced nations

Question 16

_____ are the taxes levied on imported goods.

Accepted Answer

A)  Excise duties 
B)  Import quotas 
C)  Subsidies 
D)  Tariffs 
A)  Excise duties 
B)  Import quotas 
C)  Subsidies 
D)  Tariffs

Question 17

Lincoln Financial has seen increased business in its European market over the last two years. Business in France and Germany has accounted for 15% of their sales and executives expect this number to rise with possible sales from other European countries. The CEO feels it is time to expand in Europe but wants to retain complete control over European operations as financial planning needs of Europeans are different than those of Americans. The CEO is also willing to invest a significant amount of capital in the expansion as he feels it will be recouped quickly. Lincoln Financial's best option for a market entry strategy is:

Accepted Answer

A)  a joint venture. 
B)  subcontracting. 
C)  franchising. 
D)  an international division. 
A)  a joint venture. 
B)  subcontracting. 
C)  franchising. 
D)  an international division.

Question 18

If a country did not import any goods and sold only what was produced within their borders, which of the following would likely occur?

Accepted Answer

A)  Consumers would have fewer choices of goods. 
B)  Prices on goods would decrease. 
C)  Prices on goods would increase. 
D)  Some types of products wouldn't be available at all. 
A)  Consumers would have fewer choices of goods. 
B)  Prices on goods would decrease. 
C)  Prices on goods would increase. 
D)  Some types of products wouldn't be available at all.

Question 19

Little Princess, a California-based company, is a creator of dolls and other toys for girls. The company is mainly involved in designing new toys and developing their prototypes. It has signed an agreement with some local toy manufacturers in Europe and North America to manufacture and distribute their toys in the local markets. These contracts are for a specified time period and permit the foreign marketer to distribute goods in a specified geographic area. Which of the following strategies is being used by Little Princess to enter foreign markets?

Accepted Answer

A)  Exporting 
B)  Direct investment 
C)  Foreign licensing 
D)  Sole sourcing 
A)  Exporting 
B)  Direct investment 
C)  Foreign licensing 
D)  Sole sourcing

Question 20

A company that changes its product's package size, price, and promotional message to meet the local market's taste is using a straight extension marketing strategy.

Accepted Answer

A) True 
 B)False

Which of the following factors is most likely to be included in the political environment?

A manufacturing firm retains more control over the export process when it deals with an export-trading company rather than dealing with an export-management company.

A nation's basic system of transportation networks, communication systems, and energy facilities form a part of its _____ environment.

The goal of the European Union, a multinational economic community, is to:

Establishing a free-trade area is the simplest way to achieve multinational economic integration.

The North American Free Trade Agreement (NAFTA) is a trade accord that removes trade barriers among:

When a group of nations agree to buy and sell goods among themselves by abolishing tariffs and trade restrictions, the nations have created a _____.

Foreign licensing agreements are valid for a specified time period after which they need to be revised or renewed.

The WTO makes binding decisions in mediating disputes and reduces trade barriers.

The activities of the World Trade Organization thus far have focused on dispute resolution rather than reducing trade barriers as:

What is the European Union? What are its goals?

Nike is a global brand, selling the same athletic shoes in each country. The company's advertisements change in some countries, however. For example, Nike ran ads in China to change the perception that "running is boring." Nike is using:

Which of the following is one of the major policy initiatives of the WTO?

_____ are the taxes levied on imported goods.

If a country did not import any goods and sold only what was produced within their borders, which of the following would likely occur?

A company that changes its product's package size, price, and promotional message to meet the local market's taste is using a straight extension marketing strategy.

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

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Exam 8: Global Marketing

Which of the following factors is most likely to be included in the political environment?

A manufacturing firm retains more control over the export process when it deals with an export-trading company rather than dealing with an export-management company.

A nation's basic system of transportation networks, communication systems, and energy facilities form a part of its _____ environment.

The goal of the European Union, a multinational economic community, is to:

Establishing a free-trade area is the simplest way to achieve multinational economic integration.

The North American Free Trade Agreement (NAFTA) is a trade accord that removes trade barriers among:

When a group of nations agree to buy and sell goods among themselves by abolishing tariffs and trade restrictions, the nations have created a _____.

Foreign licensing agreements are valid for a specified time period after which they need to be revised or renewed.

The WTO makes binding decisions in mediating disputes and reduces trade barriers.

The activities of the World Trade Organization thus far have focused on dispute resolution rather than reducing trade barriers as:

What is the European Union? What are its goals?

Nike is a global brand, selling the same athletic shoes in each country. The company's advertisements change in some countries, however. For example, Nike ran ads in China to change the perception that "running is boring." Nike is using:

Which of the following is one of the major policy initiatives of the WTO?

_____ are the taxes levied on imported goods.

If a country did not import any goods and sold only what was produced within their borders, which of the following would likely occur?

A company that changes its product's package size, price, and promotional message to meet the local market's taste is using a straight extension marketing strategy.

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