Question 1

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

Accepted Answer

A)  Manufactured products and commodities account for only 25 percent of world trade. 
B)  Services such as telecommunications, transportation, and banking are not included in calculations of world trade. 
C)  The United States has replaced China as the biggest country in terms of world trade. 
D)  Europe is the largest region involved in world trade. 
E)  Dollar value of world trade has almost doubled in the past decade. 
A)  Manufactured products and commodities account for only 25 percent of world trade. 
B)  Services such as telecommunications, transportation, and banking are not included in calculations of world trade. 
C)  The United States has replaced China as the biggest country in terms of world trade. 
D)  Europe is the largest region involved in world trade. 
E)  Dollar value of world trade has almost doubled in the past decade.

Question 2

If you were responsible for marketing communications at a company that manufactures office supplies and had to provide product literature to be distributed in France, you would be wise to use ________, whereby you have someone translate your literature from American English into French, and then have someone else in France translate the French into American English.

Accepted Answer

A)  back talk 
B)  back translation 
C)  double talk 
D)  double entendre 
E)  double indemnity 
A)  back talk 
B)  back translation 
C)  double talk 
D)  double entendre 
E)  double indemnity

Question 3

To avoid competing with Japanese firms through their traditional channel of distribution, Fran Wilson Creative Cosmetics Moodmatcher lip coloring is sold in which type of retail venue?

Accepted Answer

A)  grocery stores 
B)  flower shops 
C)  beauty salons 
D)  department stores 
E)  gift stores 
A)  grocery stores 
B)  flower shops 
C)  beauty salons 
D)  department stores 
E)  gift stores

Question 4

The World Trade Organization (WTO) is

Accepted Answer

A)  the world's largest banking institution responsible for establishing and maintaining equitable exchange rates for all member nations. 
B)  the world's largest licensing institution responsible for the certification of products distributed to a global market. 
C)  an institution that sets rules governing trade between its members through panels of trade experts who decide on trade disputes between members and issue binding decisions. 
D)  a multinational trade organization composed of the world's wealthiest nations whose primary purpose is to aid in the economic growth of developing nations. 
E)  a multinational trade organization comprised of the world's wealthiest nations whose primary purpose is to promote free trade economies. 
A)  the world's largest banking institution responsible for establishing and maintaining equitable exchange rates for all member nations. 
B)  the world's largest licensing institution responsible for the certification of products distributed to a global market. 
C)  an institution that sets rules governing trade between its members through panels of trade experts who decide on trade disputes between members and issue binding decisions. 
D)  a multinational trade organization composed of the world's wealthiest nations whose primary purpose is to aid in the economic growth of developing nations. 
E)  a multinational trade organization comprised of the world's wealthiest nations whose primary purpose is to promote free trade economies.

Question 5

Figure 7-4
-According to Figure 7-4 above, point C would most likely represent which option for entering the global marketplace?

Accepted Answer

A)  exporting 
B)  joint venture 
C)  direct investment 
D)  licensing 
E)  franchising 
A)  exporting 
B)  joint venture 
C)  direct investment 
D)  licensing 
E)  franchising

Question 6

Which form of entry into a foreign market requires the greatest commitment?

Accepted Answer

A)  direct exporting 
B)  direct investment 
C)  joint venture 
D)  licensing 
E)  indirect exporting 
A)  direct exporting 
B)  direct investment 
C)  joint venture 
D)  licensing 
E)  indirect exporting

Question 7

Once a company has decided to enter the global marketplace, it must select a means of market entry. All of the following are the general options except which?

Accepted Answer

A)  licensing 
B)  exporting 
C)  direct investment 
D)  joint venture 
E)  cooperative 
A)  licensing 
B)  exporting 
C)  direct investment 
D)  joint venture 
E)  cooperative

Question 8

Global competition exists when

Accepted Answer

A)  a firm produces and markets its products domestically rather than globally. 
B)  firms originate, produce, and market their products and services worldwide. 
C)  two firms from two different countries compete for market share in a single domestic market. 
D)  two or more firms from different nations combine their resources to market products in a single domestic market. 
E)  the firm from one nation dominates the market for its product in every nation. 
A)  a firm produces and markets its products domestically rather than globally. 
B)  firms originate, produce, and market their products and services worldwide. 
C)  two firms from two different countries compete for market share in a single domestic market. 
D)  two or more firms from different nations combine their resources to market products in a single domestic market. 
E)  the firm from one nation dominates the market for its product in every nation.

Question 9

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 ethnocentrism. 
A)  market synthesis. 
B)  cross-cultural analysis. 
C)  international sociographics. 
D)  transnational anthropology. 
E)  multicultural ethnocentrism.

Question 10

Which of the following is a disadvantage associated with licensing?

Accepted Answer

A)  The licensee pays lower wages and sells at lower prices. 
B)  The licensor may create its own competition. 
C)  The foreign government dislikes it because it does not increase local employment. 
D)  This is the most expensive and risky method for global expansion. 
E)  The firm's brand does not get international exposure. 
A)  The licensee pays lower wages and sells at lower prices. 
B)  The licensor may create its own competition. 
C)  The foreign government dislikes it because it does not increase local employment. 
D)  This is the most expensive and risky method for global expansion. 
E)  The firm's brand does not get international exposure.

Question 11

Which market entry option allows a company to make the least number of changes in terms of its product, its organization, and even its corporate goals?

Accepted Answer

A)  exporting 
B)  licensing 
C)  joint venture 
D)  direct investment 
E)  franchising 
A)  exporting 
B)  licensing 
C)  joint venture 
D)  direct investment 
E)  franchising

Question 12

Most companies become involved in direct exporting when

Accepted Answer

A)  foreign governments believe that they will benefit the most from allowing the entry of direct exports. 
B)  emerging markets in foreign countries become economically viable. 
C)  they believe their volume of sales will be sufficiently large and easy to obtain, thus making intermediaries unnecessary. 
D)  the domestic market becomes saturated with competing products and services. 
E)  evolving technologies in foreign countries come online. 
A)  foreign governments believe that they will benefit the most from allowing the entry of direct exports. 
B)  emerging markets in foreign countries become economically viable. 
C)  they believe their volume of sales will be sufficiently large and easy to obtain, thus making intermediaries unnecessary. 
D)  the domestic market becomes saturated with competing products and services. 
E)  evolving technologies in foreign countries come online.

Question 13

Which of the following is an important indicator of a nation's increasing purchasing power?

Accepted Answer

A)  a growing proportion of middle-income households 
B)  declining per capita income 
C)  stable household incomes 
D)  stable incomes for the wealthiest consumers 
E)  a large gap developing or persisting between top incomes and lowest incomes 
A)  a growing proportion of middle-income households 
B)  declining per capita income 
C)  stable household incomes 
D)  stable incomes for the wealthiest consumers 
E)  a large gap developing or persisting between top incomes and lowest incomes

Question 14

The monetary value of all products and services produced in a country during one year is referred to as the

Accepted Answer

A)  balance of trade. 
B)  gross domestic product. 
C)  national monetary reserve. 
D)  monetary national balance. 
E)  annual national product. 
A)  balance of trade. 
B)  gross domestic product. 
C)  national monetary reserve. 
D)  monetary national balance. 
E)  annual national product.

Question 15

The prominent global market entry strategy among small- and medium-sized companies is

Accepted Answer

A)  exporting. 
B)  franchising. 
C)  licensing. 
D)  joint venture. 
E)  direct investment. 
A)  exporting. 
B)  franchising. 
C)  licensing. 
D)  joint venture. 
E)  direct investment.

Question 16

Explain the difference between dumping and parallel importing.

Accepted Answer

Dumping refers to a firm selling a produ

Question 17

The complementary nature of economic flows internationally, whereby imports stimulate exports and vice versa, is called ________ and is one argument for free trade among nations.

Accepted Answer

A)  the balance of trade 
B)  countertrade 
C)  exchange trade 
D)  the trade feedback effect 
E)  global market trading 
A)  the balance of trade 
B)  countertrade 
C)  exchange trade 
D)  the trade feedback effect 
E)  global market trading

Question 18

A global marketer selling consumer products and services must also consider what the ________ is among a country's consumers and how income is distributed to determine a nation's purchasing power.

Accepted Answer

A)  buying capacity 
B)  currency exchange risk 
C)  purchasing incentive 
D)  per capita income 
E)  cost of living 
A)  buying capacity 
B)  currency exchange risk 
C)  purchasing incentive 
D)  per capita income 
E)  cost of living

Question 19

The reverence that Japan shows toward its elderly is an example of that nation's

Accepted Answer

A)  values. 
B)  beliefs. 
C)  customs. 
D)  religion. 
E)  cultural diversity. 
A)  values. 
B)  beliefs. 
C)  customs. 
D)  religion. 
E)  cultural diversity.

Question 20

When a nation's imports exceed its exports, it incurs a ________ in its balance of trade.

Accepted Answer

A)  countertrade 
B)  trade feedback effect 
C)  deficit 
D)  surplus 
E)  tariff 
A)  countertrade 
B)  trade feedback effect 
C)  deficit 
D)  surplus 
E)  tariff

Exam 7: Understanding and Reaching Global Consumers and Markets

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

To avoid competing with Japanese firms through their traditional channel of distribution, Fran Wilson Creative Cosmetics Moodmatcher lip coloring is sold in which type of retail venue?

The World Trade Organization (WTO) is

Figure 7-4 -According to Figure 7-4 above, point C would most likely represent which option for entering the global marketplace?

Which form of entry into a foreign market requires the greatest commitment?

Once a company has decided to enter the global marketplace, it must select a means of market entry. All of the following are the general options except which?

Global competition exists when

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

Which of the following is a disadvantage associated with licensing?

Which market entry option allows a company to make the least number of changes in terms of its product, its organization, and even its corporate goals?

Most companies become involved in direct exporting when

Which of the following is an important indicator of a nation's increasing purchasing power?

The monetary value of all products and services produced in a country during one year is referred to as the

The prominent global market entry strategy among small- and medium-sized companies is

Explain the difference between dumping and parallel importing.

The complementary nature of economic flows internationally, whereby imports stimulate exports and vice versa, is called ________ and is one argument for free trade among nations.

A global marketer selling consumer products and services must also consider what the ________ is among a country's consumers and how income is distributed to determine a nation's purchasing power.

The reverence that Japan shows toward its elderly is an example of that nation's

When a nation's imports exceed its exports, it incurs a ________ in its balance of trade.

Creating Customer Relationships and Value Through Marketing

Developing Successful Organizational and Marketing Strategies

Scanning the Marketing Environment

Ethical and Social Responsibility for Sustainable Marketing

Understanding Consumer Behavior

Understanding Organizations As Customers

Marketing Research: From Customer Insights to Actions

Market Segmentation, Targeting, and Positioning

Developing New Products and Services

Managing Successful Products, Services, and Brands

Services Marketing

Building the Price Foundation

Arriving at the Final Price

Managing Marketing Channels and Supply Chains

Retailing and Wholesaling

Integrated Marketing Communications and Direct Marketing

Advertising, Sales Promotion, and Public Relations

Using Social Media and Mobile Marketing to Connect With Consumers

Personal Selling and Sales Management

Implementing Interactive and Multi-Channel Marketing

Pulling It All Together: the Strategic Marketing Proces

Building an Effective Marketing Plan

Financial Aspects of Marketing

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