Exam 7: Serving Global Markets

What can a fluctuation in exchange rates result in?

In general, tariffs are imposed to raise revenue, protect prices of domestic products, and control access to markets.

In a free trade area, there is a uniform tariff that is set for participating nations.

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

Which organization is a major player in the international legal environment by lending foreign exchange to nations that require it to conduct international trade?

Subcontracting to a foreign company is a contractual agreement that allows avoidance of the import duties and regulations.

Companies often adapt their pricing strategy from one foreign market to another and modify pricing when market conditions change.

Some of the largest direct investments by foreign companies in Canada have occurred in the automobile industry.

Importing and exporting products is a low-risk strategy for entering a foreign market, as it allows a firm more control over how products are sold.

Why are many of the eastern European currencies considered to be soft currencies?

What is one of the major policy initiatives of the World Trade Organization?

What type of constraint can most likely limit pricing decisions in a foreign market?

List the reasons that Canada is attractive to foreign marketers.

Outboard motors that are sold in Canada primarily as recreational products may be sold in a foreign country as basic transportation equipment. Such a practice would constitute product adaptation in the foreign market.

Nations with low per-capita incomes are often good markets for industrial machinery but bad ones for agricultural hand tools.

The ISO 14000 series sets standards for operations that minimize harm to the environment.

What are many Western firms using in order to stay abreast of changing political and legal environments that exist in various foreign countries?

What idea is the basis for the European Union currency, the euro?

Firms often use more than one strategy to enter into foreign markets.

Neither export-management nor export-trade takes ownership of the product; in both cases, title for the product is retained by the manufacturer until a buyer is located and the sales transaction is completed.