Question 1

Assume a group of coffee-producing countries meets annually to determine their levels of production and prices for the upcoming year. This would be an example of:

Accepted Answer

A)  a joint venture. 
B)  a cooperative. 
C)  a cartel. 
D)  a limited partnership. 
E)  contract manufacturing. 
A)  a joint venture. 
B)  a cooperative. 
C)  a cartel. 
D)  a limited partnership. 
E)  contract manufacturing.

Question 2

Why do so many American manufacturers use foreign trade middlemen located abroad for their international marketing operations?

Accepted Answer

A)  Supply is not large enough to justify the establishment of a foreign licensing agreement. 
B)  Government controls require the use of American sales organizations. 
C)  Demand for their products is too small to justify the establishment of a sales office or a sales branch. 
D)  Most products are sold according to a standardized marketing strategy. 
E)  Knowledge of the product is more important than knowledge of the market. 
A)  Supply is not large enough to justify the establishment of a foreign licensing agreement. 
B)  Government controls require the use of American sales organizations. 
C)  Demand for their products is too small to justify the establishment of a sales office or a sales branch. 
D)  Most products are sold according to a standardized marketing strategy. 
E)  Knowledge of the product is more important than knowledge of the market.

Question 3

Finland is a prosperous and homogeneous nation. Its merchandise exports in 2002 were valued at $43.8 billion, and its merchandise import for the same period was $30.6 billion. Its leading industries are telecommunications, shipbuilding, and forestry. It is the home to Nokia, the world's leading mobile phone maker. Nokia predicted that its worldwide sales in 2003 would increase by 10 percent. One of country's strengths is its shipbuilding industry, which is more efficient that it's Asian counterparts and has a reputation for innovation. One of the country's weaknesses is how difficult it for people from different cultures to be assimilated into the Finnish culture. The Finns blame the language, the climate, and the lack of existing foreign communities, but neighboring Sweden has a strong immigrant population.
-StoraEnso is the leading forestry products manufacturer in Finland. StoraEnso purchased U.S.-based Consolidated Paper for $4.4 billion in order to gain strength in the North American market. What method of operating in a foreign market did the Finnish company use?

Accepted Answer

A)  licensing 
B)  joint venture 
C)  strategic alliance 
D)  franchising 
E)  wholly-owned subsidiary 
A)  licensing 
B)  joint venture 
C)  strategic alliance 
D)  franchising 
E)  wholly-owned subsidiary

Question 4

Finland is a prosperous and homogeneous nation. Its merchandise exports in 2002 were valued at $43.8 billion, and its merchandise import for the same period was $30.6 billion. Its leading industries are telecommunications, shipbuilding, and forestry. It is the home to Nokia, the world's leading mobile phone maker. Nokia predicted that its worldwide sales in 2003 would increase by 10 percent. One of country's strengths is its shipbuilding industry, which is more efficient that it's Asian counterparts and has a reputation for innovation. One of the country's weaknesses is how difficult it for people from different cultures to be assimilated into the Finnish culture. The Finns blame the language, the climate, and the lack of existing foreign communities, but neighboring Sweden has a strong immigrant population.
-It is obvious from looking at Finland's exports and imports that the nation has a:

Accepted Answer

A)  countertrade-based economy. 
B)  trade surplus. 
C)  non-economic exchange practice. 
D)  trade deficit. 
E)  fiduciary overdraft. 
A)  countertrade-based economy. 
B)  trade surplus. 
C)  non-economic exchange practice. 
D)  trade deficit. 
E)  fiduciary overdraft.

Question 5

An issue of growing international concern is the _____ charged for an identical brand in different, often neighboring countries.

Accepted Answer

A)  comparative price 
B)  price differential 
C)  value-added price 
D)  value chain price 
E)  trade price 
A)  comparative price 
B)  price differential 
C)  value-added price 
D)  value chain price 
E)  trade price

Question 6

Contract manufacturing means granting to another producer--for a fee or a royalty--the right to use one's productive process, patents, or trademarks.

Accepted Answer

A) True 
 B)False

Question 7

An _____ _____ may be located in either the manufacturer's country or in the destination country and  negotiates the sale of the product. They are typically not aggressive marketers.

Accepted Answer

The answer of An _____ _____ may be located in...

Question 8

All of the following are social and cultural forces, which can be used to determine whether or not a nation's citizens are a potential market for many products EXCEPT:

Accepted Answer

A)  the family structure. 
B)  per capita income. 
C)  social customs. 
D)  language differences. 
E)  educational level. 
A)  the family structure. 
B)  per capita income. 
C)  social customs. 
D)  language differences. 
E)  educational level.

Question 9

Loctite Corporation, a manufacturer of industrial adhesives and sealants, owns production plants in Argentina, Brazil, and Venezuela. These South American plants are examples of _____ and reflect a substantial investment of Loctite money, labor, and managerial attention.

Accepted Answer

A)  joint ventures 
B)  foreign licensees 
C)  wholly owned subsidiaries 
D)  foreign licensors 
E)  company sales branches 
A)  joint ventures 
B)  foreign licensees 
C)  wholly owned subsidiaries 
D)  foreign licensors 
E)  company sales branches

Question 10

One of the reasons for the use of countertrading is:

Accepted Answer

A)  a sociocultural need to barter. 
B)  a lack of hard currency in one or both of the nations involved. 
C)  the presence of a strong infrastructure. 
D)  a customer preference for bypassing trade barriers. 
E)  a dual distribution system. 
A)  a sociocultural need to barter. 
B)  a lack of hard currency in one or both of the nations involved. 
C)  the presence of a strong infrastructure. 
D)  a customer preference for bypassing trade barriers. 
E)  a dual distribution system.

Question 11

The advertising for New Balance shoes claimed the shoes are "Made in America," but all the soles and most of the uppers are imported from China. The Federal Trade Commission made New Balance discontinue this advertising. This is an example of a company can have problems with _____ forces in its environment.

Accepted Answer

A)  technological 
B)  competitive 
C)  social and cultural 
D)  economic 
E)  political and legal 
A)  technological 
B)  competitive 
C)  social and cultural 
D)  economic 
E)  political and legal

Question 12

Mercedes-Benz has been given the right to use the Swatch watch brand name for its new Swatchmobile, a micro-compact car that is just over 8 feet long and capable of holding two people and one overnight bag. Mercedes-Benz paid a fee to Swatch for the use of its name and hopes the popularity of the Swatch watch will give the midget car instant brand recognition. This is an example of:

Accepted Answer

A)  a trust. 
B)  a venture franchise. 
C)  a joint venture. 
D)  licensing. 
E)  venture distribution. 
A)  a trust. 
B)  a venture franchise. 
C)  a joint venture. 
D)  licensing. 
E)  venture distribution.

Question 13

A firm wanting to operate in a country but wishing to avoid its exchange restrictions, import quotas, or prohibitive tariffs could enter the market by using:

Accepted Answer

A)  a joint venture. 
B)  a turnkey operation. 
C)  venture distribution. 
D)  venture franchising. 
E)  contracting. 
A)  a joint venture. 
B)  a turnkey operation. 
C)  venture distribution. 
D)  venture franchising. 
E)  contracting.

Question 14

A _____ strategy requires the modification of a product that sells successfully in one market to suit the unique needs or requirements of another market.

Accepted Answer

A)  market aggregation 
B)  product adaptation 
C)  market differentiation 
D)  product extension 
E)  nationalization 
A)  market aggregation 
B)  product adaptation 
C)  market differentiation 
D)  product extension 
E)  nationalization

Question 15

In the North American Free Trade Agreement (NAFTA), Canada, the U.S., and Mexico have agreed to standardize tariffs.

Accepted Answer

A) True 
 B)False

Question 16

With _____, essentially the same marketing program is employed around the world.

Accepted Answer

A)  synonymous marketing 
B)  a global strategy 
C)  international uniformity 
D)  market uniformity 
E)  market symmetry 
A)  synonymous marketing 
B)  a global strategy 
C)  international uniformity 
D)  market uniformity 
E)  market symmetry

Question 17

Which of the following is a key factor for determining the economic attractiveness of an international market?

Accepted Answer

A)  its trade barriers 
B)  its population distribution 
C)  its infrastructure 
D)  its trade agreements 
E)  all of the above 
A)  its trade barriers 
B)  its population distribution 
C)  its infrastructure 
D)  its trade agreements 
E)  all of the above

Question 18

One of the advantages of using an export merchant to operate in foreign markets is the:

Accepted Answer

A)  large sales volume export merchants handle. 
B)  high return on investment. 
C)  strong control the producer has over the agent middleman. 
D)  minimal time and effort required of the producer. 
E)  worldwide aggressive promotion of products. 
A)  large sales volume export merchants handle. 
B)  high return on investment. 
C)  strong control the producer has over the agent middleman. 
D)  minimal time and effort required of the producer. 
E)  worldwide aggressive promotion of products.

Question 19

In international trade, if a country has a trade deficit, it means the:

Accepted Answer

A)  value of the country's imports exceeds the value of its exports. 
B)  country is maintaining its imports and increasing its level of exports. 
C)  country is not paying its international debts. 
D)  value of the country's exports exceeds the value of its imports. 
E)  country is a developing nation. 
A)  value of the country's imports exceeds the value of its exports. 
B)  country is maintaining its imports and increasing its level of exports. 
C)  country is not paying its international debts. 
D)  value of the country's exports exceeds the value of its imports. 
E)  country is a developing nation.

Question 20

For an American firm engaged in international marketing, a joint venture:

Accepted Answer

A)  is a type of leasing arrangement. 
B)  is a type of licensing. 
C)  is a reciprocal arrangement with a foreign supplier. 
D)  is a partnership arrangement between the American firm and a foreign company. 
E)  requires the standardization of its marketing program. 
A)  is a type of leasing arrangement. 
B)  is a type of licensing. 
C)  is a reciprocal arrangement with a foreign supplier. 
D)  is a partnership arrangement between the American firm and a foreign company. 
E)  requires the standardization of its marketing program.

Assume a group of coffee-producing countries meets annually to determine their levels of production and prices for the upcoming year. This would be an example of:

Why do so many American manufacturers use foreign trade middlemen located abroad for their international marketing operations?

An issue of growing international concern is the _____ charged for an identical brand in different, often neighboring countries.

Contract manufacturing means granting to another producer--for a fee or a royalty--the right to use one's productive process, patents, or trademarks.

An _ _ may be located in either the manufacturer's country or in the destination country and negotiates the sale of the product. They are typically not aggressive marketers.

All of the following are social and cultural forces, which can be used to determine whether or not a nation's citizens are a potential market for many products EXCEPT:

Loctite Corporation, a manufacturer of industrial adhesives and sealants, owns production plants in Argentina, Brazil, and Venezuela. These South American plants are examples of _____ and reflect a substantial investment of Loctite money, labor, and managerial attention.

One of the reasons for the use of countertrading is:

A firm wanting to operate in a country but wishing to avoid its exchange restrictions, import quotas, or prohibitive tariffs could enter the market by using:

A _____ strategy requires the modification of a product that sells successfully in one market to suit the unique needs or requirements of another market.

In the North American Free Trade Agreement (NAFTA), Canada, the U.S., and Mexico have agreed to standardize tariffs.

With _____, essentially the same marketing program is employed around the world.

Which of the following is a key factor for determining the economic attractiveness of an international market?

One of the advantages of using an export merchant to operate in foreign markets is the:

In international trade, if a country has a trade deficit, it means the:

For an American firm engaged in international marketing, a joint venture:

The Field of Marketing

The Dynamic Marketing Environment

Consumer Markets and Buying Behavior

Business Markets and Buying Behavior

Marketing Research and Market Information

Product Planning and Development

Product-Mix Strategies

Brands, Packaging, and Other Product Features

Services Marketing

Price Determination

Pricing Strategies

Channels of Distribution

Retailing

Wholesaling and Physical Distribution

Integrated Marketing Communications

Personal Selling and Sales Management

Advertising, Sales Promotion, and Public Relations

Strategic Marketing Planning

Marketing Implementation and Evaluation

Marketing and the Information Economy

Market Segmentation Targeting and Positioning

Filters

Exam 3: Global Markets and Marketing

Assume a group of coffee-producing countries meets annually to determine their levels of production and prices for the upcoming year. This would be an example of:

Why do so many American manufacturers use foreign trade middlemen located abroad for their international marketing operations?

An issue of growing international concern is the _____ charged for an identical brand in different, often neighboring countries.

Contract manufacturing means granting to another producer--for a fee or a royalty--the right to use one's productive process, patents, or trademarks.

An _____ _____ may be located in either the manufacturer's country or in the destination country and negotiates the sale of the product. They are typically not aggressive marketers.

All of the following are social and cultural forces, which can be used to determine whether or not a nation's citizens are a potential market for many products EXCEPT:

Loctite Corporation, a manufacturer of industrial adhesives and sealants, owns production plants in Argentina, Brazil, and Venezuela. These South American plants are examples of _____ and reflect a substantial investment of Loctite money, labor, and managerial attention.

One of the reasons for the use of countertrading is:

A firm wanting to operate in a country but wishing to avoid its exchange restrictions, import quotas, or prohibitive tariffs could enter the market by using:

A _____ strategy requires the modification of a product that sells successfully in one market to suit the unique needs or requirements of another market.

In the North American Free Trade Agreement (NAFTA), Canada, the U.S., and Mexico have agreed to standardize tariffs.

With _____, essentially the same marketing program is employed around the world.

Which of the following is a key factor for determining the economic attractiveness of an international market?

One of the advantages of using an export merchant to operate in foreign markets is the:

In international trade, if a country has a trade deficit, it means the:

For an American firm engaged in international marketing, a joint venture:

The Field of Marketing

The Dynamic Marketing Environment

Consumer Markets and Buying Behavior

Business Markets and Buying Behavior

Marketing Research and Market Information

Product Planning and Development

Product-Mix Strategies

Brands, Packaging, and Other Product Features

Services Marketing

Price Determination

Pricing Strategies

Channels of Distribution

Retailing

Wholesaling and Physical Distribution

Integrated Marketing Communications

Personal Selling and Sales Management

Advertising, Sales Promotion, and Public Relations

Strategic Marketing Planning

Marketing Implementation and Evaluation

Marketing and the Information Economy

Market Segmentation Targeting and Positioning

Filters

An _ _ may be located in either the manufacturer's country or in the destination country and negotiates the sale of the product. They are typically not aggressive marketers.