Question 1

Which of the following is a major disadvantage of direct investment for the domestic company?

Accepted Answer

A) The returns are lesser as compared to exporting. 
B) Generally, the firm finds it difficult to develop a deeper relationship with the government or customers. 
C) The firm eventually loses control over the investment. 
D) The firm faces many risks such as falling markets or government changes. 
E) Due to a lack of control, the firm is unable to develop marketing policies that serve its long-term international objectives. 
A) The returns are lesser as compared to exporting. 
B) Generally, the firm finds it difficult to develop a deeper relationship with the government or customers. 
C) The firm eventually loses control over the investment. 
D) The firm faces many risks such as falling markets or government changes. 
E) Due to a lack of control, the firm is unable to develop marketing policies that serve its long-term international objectives.

Question 2

One of the disadvantages of adapted global marketing when compared to standardized global marketing is that ________.

Accepted Answer

A) adapted global marketing results in more costs 
B) adapted global marketing produces a smaller market share 
C) the returns are lesser 
D) the strategies are not tailored to the needs of the target customers 
E) products and marketing approaches remain the same worldwide 
A) adapted global marketing results in more costs 
B) adapted global marketing produces a smaller market share 
C) the returns are lesser 
D) the strategies are not tailored to the needs of the target customers 
E) products and marketing approaches remain the same worldwide

Question 3

Direct investment involves lesser changes in the company's product lines,organization,investments,or mission as compared to exporting.

Accepted Answer

A) True 
 B)False

Question 4

The European Union is a free trade zone.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following types of economies consumes most of its output and barters the rest for simple goods and services?

Accepted Answer

A) industrial economy 
B) industrializing economy 
C) subsistence economy 
D) emerging economy 
E) raw material exporting economy 
A) industrial economy 
B) industrializing economy 
C) subsistence economy 
D) emerging economy 
E) raw material exporting economy

Question 6

A subsistence economy is one in which ________.

Accepted Answer

A) much of the revenue comes from exporting one or more natural resources 
B) fast growth in manufacturing results in overall economic growth 
C) more import of raw materials is required 
D) manufactured goods form a major part of exports 
E) a vast majority of people engage in simple agriculture 
A) much of the revenue comes from exporting one or more natural resources 
B) fast growth in manufacturing results in overall economic growth 
C) more import of raw materials is required 
D) manufactured goods form a major part of exports 
E) a vast majority of people engage in simple agriculture

Question 7

Under licensing,a domestic firm provides its management know-how to a foreign company that supplies the capital.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following is true of communication adaptation for a company entering a foreign market?

Accepted Answer

A) Language adjustments are considered unimportant. 
B) Cultural differences are seen as a negligible necessity in the process. 
C) A strategy of fully modifying advertising messages to local markets is used. 
D) As media availability is similar across countries, media need not be adapted internationally. 
E) A standardized advertising theme is used as consumer needs around the world are becoming more similar. 
A) Language adjustments are considered unimportant. 
B) Cultural differences are seen as a negligible necessity in the process. 
C) A strategy of fully modifying advertising messages to local markets is used. 
D) As media availability is similar across countries, media need not be adapted internationally. 
E) A standardized advertising theme is used as consumer needs around the world are becoming more similar.

Question 9

The United States has an industrial economy.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following is an advantage of direct investment?

Accepted Answer

A) Direct investment involves lower risk as compared to joint venturing. 
B) Direct investment involves the least change in the company's investments and mission. 
C) The firm keeps full control over the investment. 
D) Direct investment involves minimum investment. 
E) There is no risk of devalued or restricted currency. 
A) Direct investment involves lower risk as compared to joint venturing. 
B) Direct investment involves the least change in the company's investments and mission. 
C) The firm keeps full control over the investment. 
D) Direct investment involves minimum investment. 
E) There is no risk of devalued or restricted currency.

Question 11

Global branding and standardization result in reduced costs from economies of scale.

Accepted Answer

A) True 
 B)False

Question 12

The purpose of a quota is to ________.

Accepted Answer

A) protect local employment 
B) provide competition to local industry 
C) force favorable trade behaviors from other nations 
D) use the available foreign exchange 
E) free up the exchange rate 
A) protect local employment 
B) provide competition to local industry 
C) force favorable trade behaviors from other nations 
D) use the available foreign exchange 
E) free up the exchange rate

Question 13

A firm normally gets into international marketing by ________.

Accepted Answer

A) establishing an export department 
B) simply shipping out its goods 
C) organizing an international division 
D) establishing a global organization 
E) acquiring a foreign company 
A) establishing an export department 
B) simply shipping out its goods 
C) organizing an international division 
D) establishing a global organization 
E) acquiring a foreign company

Question 14

Kimlee,a company based in China,is a global leader in manufacturing and marketing noodles.It recognizes the immense demand for noodles in the Australian market.Wanley,a producer of noodles in Australia,has a deeper understanding of the Australian market.Kimlee believes that together,each can accomplish more than either could alone.Hence,both the companies decide to form a new business venture in which they share possession and control.Which method of entering a foreign market has Kimlee chosen?

Accepted Answer

A) licensing 
B) contract manufacturing 
C) direct investment 
D) joint ownership 
E) management contracting 
A) licensing 
B) contract manufacturing 
C) direct investment 
D) joint ownership 
E) management contracting

Question 15

Licensing is a type of ________.

Accepted Answer

A) contract manufacturing 
B) Greenfield investment 
C) direct investment 
D) management contracting 
E) joint venture 
A) contract manufacturing 
B) Greenfield investment 
C) direct investment 
D) management contracting 
E) joint venture

Question 16

Which of the following is an advantage of management contracting?

Accepted Answer

A) Management contracting involves the least change in the company's product lines. 
B) The company can set up its own operations simultaneously. 
C) Management contracting is the simplest way to enter a foreign market. 
D) Management contracting yields income from the beginning. 
E) Management contracting gives the contracting firm an option to buy some shares in the managed company immediately. 
A) Management contracting involves the least change in the company's product lines. 
B) The company can set up its own operations simultaneously. 
C) Management contracting is the simplest way to enter a foreign market. 
D) Management contracting yields income from the beginning. 
E) Management contracting gives the contracting firm an option to buy some shares in the managed company immediately.

Question 17

The ________ replaced GATT in 1995 and now oversees the original GATT provisions.

Accepted Answer

A) International Labor Organization 
B) World Trade Organization 
C) International Monetary Fund 
D) World Bank 
E) European Union 
A) International Labor Organization 
B) World Trade Organization 
C) International Monetary Fund 
D) World Bank 
E) European Union

Question 18

Which of the following statements is true of industrial economies?

Accepted Answer

A) Industrial economies export their goods to other types of economies for raw materials. 
B) Industrial economies create a new rich class and small but growing middle class. 
C) The vast majority of people in industrial economies engage in simple agriculture. 
D) Industrial economies are rich in one or more resources but poor in other ways. 
E) Industrial economies consume most of their output and barter the rest for simple goods and services. 
A) Industrial economies export their goods to other types of economies for raw materials. 
B) Industrial economies create a new rich class and small but growing middle class. 
C) The vast majority of people in industrial economies engage in simple agriculture. 
D) Industrial economies are rich in one or more resources but poor in other ways. 
E) Industrial economies consume most of their output and barter the rest for simple goods and services.

Question 19

Regardless of how companies go about pricing their products,their foreign prices probably will be higher than their domestic prices for comparable products.This is known as the ________ problem.

Accepted Answer

A) price escalation 
B) demand escalation 
C) inflation 
D) skimming price 
E) deflation 
A) price escalation 
B) demand escalation 
C) inflation 
D) skimming price 
E) deflation

Question 20

Global companies recruit management from many countries,buy components and supplies where they cost the least,and invest where the expected returns are greatest.

Accepted Answer

A) True 
 B)False

Which of the following is a major disadvantage of direct investment for the domestic company?

One of the disadvantages of adapted global marketing when compared to standardized global marketing is that ________.

Direct investment involves lesser changes in the company's product lines,organization,investments,or mission as compared to exporting.

The European Union is a free trade zone.

Which of the following types of economies consumes most of its output and barters the rest for simple goods and services?

A subsistence economy is one in which ________.

Under licensing,a domestic firm provides its management know-how to a foreign company that supplies the capital.

Which of the following is true of communication adaptation for a company entering a foreign market?

The United States has an industrial economy.

Which of the following is an advantage of direct investment?

Global branding and standardization result in reduced costs from economies of scale.

The purpose of a quota is to ________.

A firm normally gets into international marketing by ________.

Licensing is a type of ________.

Which of the following is an advantage of management contracting?

The ________ replaced GATT in 1995 and now oversees the original GATT provisions.

Which of the following statements is true of industrial economies?

Regardless of how companies go about pricing their products,their foreign prices probably will be higher than their domestic prices for comparable products.This is known as the ________ problem.

Global companies recruit management from many countries,buy components and supplies where they cost the least,and invest where the expected returns are greatest.

Marketing Creating and Capturing Customer Value

Company and Marketing Strategy: Partnering to Build Customer Relationships

Analyzing the Marketing Environment

Managing Marketing Information to Gain Customer Insights

Understanding Consumer and Business Buyer Behavior

Customer-Driven Marketing Strategy: Creating Value for Target Customers

Product,Services,and Brands: Building Customer Value

Developing New Products and Managing the Product Life Cycle

Pricing: Understanding and Capturing Customer Value

Marketing Channels Delivering Customer Value

Retailing and Wholesaling

Communicating Customer Value

Personal Selling and Sales Promotion

Direct and Online Marketing: Building Direct Customer Relationships

Sustainable Marketing: Social Responsibility and Ethics

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Exam 15: The Global Marketplace

Which of the following is a major disadvantage of direct investment for the domestic company?

One of the disadvantages of adapted global marketing when compared to standardized global marketing is that ________.

Direct investment involves lesser changes in the company's product lines,organization,investments,or mission as compared to exporting.

The European Union is a free trade zone.

Which of the following types of economies consumes most of its output and barters the rest for simple goods and services?

A subsistence economy is one in which ________.

Under licensing,a domestic firm provides its management know-how to a foreign company that supplies the capital.

Which of the following is true of communication adaptation for a company entering a foreign market?

The United States has an industrial economy.

Which of the following is an advantage of direct investment?

Global branding and standardization result in reduced costs from economies of scale.

The purpose of a quota is to ________.

A firm normally gets into international marketing by ________.

Licensing is a type of ________.

Which of the following is an advantage of management contracting?

The ________ replaced GATT in 1995 and now oversees the original GATT provisions.

Which of the following statements is true of industrial economies?

Regardless of how companies go about pricing their products,their foreign prices probably will be higher than their domestic prices for comparable products.This is known as the ________ problem.

Global companies recruit management from many countries,buy components and supplies where they cost the least,and invest where the expected returns are greatest.

Marketing Creating and Capturing Customer Value

Company and Marketing Strategy: Partnering to Build Customer Relationships

Analyzing the Marketing Environment

Managing Marketing Information to Gain Customer Insights

Understanding Consumer and Business Buyer Behavior

Customer-Driven Marketing Strategy: Creating Value for Target Customers

Product,Services,and Brands: Building Customer Value

Developing New Products and Managing the Product Life Cycle

Pricing: Understanding and Capturing Customer Value

Marketing Channels Delivering Customer Value

Retailing and Wholesaling

Communicating Customer Value

Personal Selling and Sales Promotion

Direct and Online Marketing: Building Direct Customer Relationships

Sustainable Marketing: Social Responsibility and Ethics

Filters