Question 1

The ____ is the difference in value between a nation's exports and its imports.

Accepted Answer

A) net trade value 
B) export/import ratio 
C) gross domestic product 
D) balance of payments 
E) balance of trade 
A) net trade value 
B) export/import ratio 
C) gross domestic product 
D) balance of payments 
E) balance of trade

Question 2

Contract manufacturing occurs when a firm pays a commission or royalties on sales or supplies used in manufacturing.

Accepted Answer

A) True 
 B)False

Question 3

A positive balance of trade is considered good because it means that U.S. dollars are supporting foreign economies at the expense of U.S. companies and workers.

Accepted Answer

A) True 
 B)False

Question 4

____ can force businesspeople to buy and sell foreign products through a central agency, such as a central bank.

Accepted Answer

A) Embargoes 
B) Export tariffs 
C) Quotas 
D) Import tariffs 
E) Exchange controls 
A) Embargoes 
B) Export tariffs 
C) Quotas 
D) Import tariffs 
E) Exchange controls

Question 5

When the makers of Red Bull, an energy drink, decided to go international with their marketing effort, a global approach was adopted. With which of the following factors did Red Bull most likely experience difficulty as the firm applied a global strategy for marketing?

Accepted Answer

A) Branding 
B) Product characteristics 
C) Packaging 
D) Labeling 
E) Advertising 
A) Branding 
B) Product characteristics 
C) Packaging 
D) Labeling 
E) Advertising

Question 6

Franchising offers all the following benefits for franchisers except

Accepted Answer

A) franchise agreements require a certain standard of behavior from franchisees, which helps protect the franchise name. 
B) franchisers can retain control of their name while increasing global penetration of their products. 
C) the franchisee's revenue stream is fairly consistent because franchisers pay fixed fees and royalties. 
D) the franchiser's revenue stream is fairly consistent because franchisees pay fixed fees and royalties. 
E) franchisers do not have to put up a large capital investment. 
A) franchise agreements require a certain standard of behavior from franchisees, which helps protect the franchise name. 
B) franchisers can retain control of their name while increasing global penetration of their products. 
C) the franchisee's revenue stream is fairly consistent because franchisers pay fixed fees and royalties. 
D) the franchiser's revenue stream is fairly consistent because franchisees pay fixed fees and royalties. 
E) franchisers do not have to put up a large capital investment.

Question 7

Which of the following lists the levels of involvement in global marketing from the lowest to the highest?

Accepted Answer

A) International marketing, limited exporting, domestic marketing, globalized marketing 
B) Limited exporting, domestic marketing, globalized marketing, international marketing 
C) Globalized marketing, international marketing, limited exporting, domestic marketing 
D) Domestic marketing, globalized marketing, international marketing, limited exporting 
E) Domestic marketing, limited exporting, international marketing, globalized marketing 
A) International marketing, limited exporting, domestic marketing, globalized marketing 
B) Limited exporting, domestic marketing, globalized marketing, international marketing 
C) Globalized marketing, international marketing, limited exporting, domestic marketing 
D) Domestic marketing, globalized marketing, international marketing, limited exporting 
E) Domestic marketing, limited exporting, international marketing, globalized marketing

Question 8

When the American company Exxon purchases crude oil from Saudi Arabia, it is engaging in

Accepted Answer

A) licensing. 
B) importing. 
C) free trade. 
D) exporting. 
E) dumping. 
A) licensing. 
B) importing. 
C) free trade. 
D) exporting. 
E) dumping.

Question 9

Select the true statement.

Accepted Answer

A) Legislation regulating marketing in many foreign countries is being eased. 
B) A government's attitude toward cooperation with importers has little impact on marketing to that country. 
C) Refusing to give payoffs and bribes in some foreign countries may put a marketer at a competitive disadvantage. 
D) Bribes and payoffs are considered unethical in all countries and cultures. 
E) Bribes and payoffs are supported by U.S.trade policies under certain conditions. 
A) Legislation regulating marketing in many foreign countries is being eased. 
B) A government's attitude toward cooperation with importers has little impact on marketing to that country. 
C) Refusing to give payoffs and bribes in some foreign countries may put a marketer at a competitive disadvantage. 
D) Bribes and payoffs are considered unethical in all countries and cultures. 
E) Bribes and payoffs are supported by U.S.trade policies under certain conditions.

Question 10

Scenario 9.1
Use the following to answer the questions.
Harley-Davidson Motors manufactures all of its motorcycles in the U.S. at one of four sites. With a large number of its bikes sold in markets all around the world, it still retains the manufacturing close to the headquarters for several reasons, one being that its management wants to keep close watch on the quality of its products. However, for all the accessories, apparel, and other riding gear, Harley-Davidson contracts out to other manufacturers to produce the items with the Harley name and logo. Some of these items, particularly the apparel, are made in China. Lately, some members of the Harley Owners' Group (HOG) have been complaining to the company about this practice, citing that "everything Harley should be made in America".
-Refer to Scenario 9.1. Harley-Davidson's practice of having manufacturers in China produce apparel items with the Harley logo is an example of

Accepted Answer

A) contract manufacturing 
B) globalization 
C) direct ownership 
D) joint venture 
E) exporting 
A) contract manufacturing 
B) globalization 
C) direct ownership 
D) joint venture 
E) exporting

Question 11

Scenario 9.2
Use the following to answer the questions.
KFC opened its first franchised restaurant outside of North America in England in 1964. Now, over a billion KFC chicken dinners are sold annually at more than 80 countries and territories around the world. KFC has established its own processing plants in these countries to ensure the quality of its chickens and other food items. In the U.S., the menu at KFC is usually the same in all restaurants, with only a very few additional items available in different regions. However, when KFC first franchised into Asian countries, it added many unusual local delicacies to the menu-items such as fried octopus and squid. Additionally, the franchised stores in Asian countries display cooked food in "plates" near windows at the front of the store. This is a tradition for many restaurants in these countries-to offer the customer passing by a preliminary view of their product.
-Refer to Scenario 9.2. Which of the following alliances will KFC most likely utilize to guide its business transactions in Japan and China?

Accepted Answer

A) WTO 
B) MERCOSUR 
C) FTAA 
D) NAFTA 
E) APEC 
A) WTO 
B) MERCOSUR 
C) FTAA 
D) NAFTA 
E) APEC

Question 12

In what ways can a nation restrict the flow of imported goods?

Accepted Answer

The answer of In what ways can a nation restrict...

Question 13

Cultural relativism is the unconscious reference to one's own cultural values, experiences, and knowledge when traveling in other countries.

Accepted Answer

A) True 
 B)False

Question 14

Under a licensing arrangement, the licensee pays commissions or royalties on sales or supplies used in manufacturing.

Accepted Answer

A) True 
 B)False

Question 15

Tony & Guy is a global hairdressing and education business headquartered in England. It has recently opened salons in Mongolia, adding to its numerous salons worldwide. Tony & Guy allows foreign businesspeople to use its name, logo, methods of operation, advertising, and products. In exchange, Tony & Guy receives a financial commitment and an agreement to conduct business in accordance with its standard of operations. Tony & Guy is engaging in

Accepted Answer

A) contract manufacturing. 
B) licensing. 
C) franchising. 
D) exporting. 
E) direct investment. 
A) contract manufacturing. 
B) licensing. 
C) franchising. 
D) exporting. 
E) direct investment.

Question 16

High Plains Furnishings, a furniture manufacturer in southern Montana, markets its furniture products in markets within the United States. It has also found several niche target markets in Finland, Chile, and Argentina. High Plains Furnishings is engaging in

Accepted Answer

A) domestic marketing and limited exporting. 
B) localized marketing and domestic marketing. 
C) globalized marketing. 
D) domestic marketing and international exporting. 
E) localized marketing and globalized marketing. 
A) domestic marketing and limited exporting. 
B) localized marketing and domestic marketing. 
C) globalized marketing. 
D) domestic marketing and international exporting. 
E) localized marketing and globalized marketing.

Question 17

It is impossible for a subsidiary to develop a local identity because it seldom employs personnel from the country within which it operates.

Accepted Answer

A) True 
 B)False

Question 18

The World Trade Organization accomplishes all of the following except

Accepted Answer

A) educating companies about international trade rules. 
B) lending money to businesses interested in developing international markets. 
C) serving as a forum for trade negotiations. 
D) helping settle trade disputes. 
E) providing legal ground rules for international commerce. 
A) educating companies about international trade rules. 
B) lending money to businesses interested in developing international markets. 
C) serving as a forum for trade negotiations. 
D) helping settle trade disputes. 
E) providing legal ground rules for international commerce.

Question 19

The purchase of products from a foreign source is called

Accepted Answer

A) exporting. 
B) dumping. 
C) importing. 
D) licensing. 
E) venturing. 
A) exporting. 
B) dumping. 
C) importing. 
D) licensing. 
E) venturing.

Question 20

A special form of licensing in which one company grants another company the right to market its product in accordance with its standards in exchange for a financial commitment is called

Accepted Answer

A) a joint venture. 
B) contract manufacturing. 
C) direct licensing. 
D) franchising. 
E) a strategic alliance. 
A) a joint venture. 
B) contract manufacturing. 
C) direct licensing. 
D) franchising. 
E) a strategic alliance.

The ____ is the difference in value between a nation's exports and its imports.

Contract manufacturing occurs when a firm pays a commission or royalties on sales or supplies used in manufacturing.

A positive balance of trade is considered good because it means that U.S. dollars are supporting foreign economies at the expense of U.S. companies and workers.

____ can force businesspeople to buy and sell foreign products through a central agency, such as a central bank.

When the makers of Red Bull, an energy drink, decided to go international with their marketing effort, a global approach was adopted. With which of the following factors did Red Bull most likely experience difficulty as the firm applied a global strategy for marketing?

Franchising offers all the following benefits for franchisers except

Which of the following lists the levels of involvement in global marketing from the lowest to the highest?

When the American company Exxon purchases crude oil from Saudi Arabia, it is engaging in

Select the true statement.

In what ways can a nation restrict the flow of imported goods?

Cultural relativism is the unconscious reference to one's own cultural values, experiences, and knowledge when traveling in other countries.

Under a licensing arrangement, the licensee pays commissions or royalties on sales or supplies used in manufacturing.

High Plains Furnishings, a furniture manufacturer in southern Montana, markets its furniture products in markets within the United States. It has also found several niche target markets in Finland, Chile, and Argentina. High Plains Furnishings is engaging in

It is impossible for a subsidiary to develop a local identity because it seldom employs personnel from the country within which it operates.

The World Trade Organization accomplishes all of the following except

The purchase of products from a foreign source is called

A special form of licensing in which one company grants another company the right to market its product in accordance with its standards in exchange for a financial commitment is called

An Overview of Strategic Marketing

Planning Implementing and Evaluating Marketing Strategies

The Marketing Environment

Social Responsibility and Ethics in Marketing

Marketing Research and Information Systems

Target Markets: Segmentation and Evaluation

Consumer Buying Behavior

Business Markets and Buying Behavior

Digital Marketing and Social Networking

Product Concepts

Developing and Managing Products

Services Marketing

Branding and Packaging

Marketing Channels and Supply Chain Management

Retailing, Direct Marketing, and Wholesaling

Integrated Marketing Communications

Advertising and Public Relations

Personal Selling and Sales Promotion

Pricing Concepts

Setting Prices

Filters

Exam 9: Reaching Global Markets

The ____ is the difference in value between a nation's exports and its imports.

Contract manufacturing occurs when a firm pays a commission or royalties on sales or supplies used in manufacturing.

A positive balance of trade is considered good because it means that U.S. dollars are supporting foreign economies at the expense of U.S. companies and workers.

____ can force businesspeople to buy and sell foreign products through a central agency, such as a central bank.

When the makers of Red Bull, an energy drink, decided to go international with their marketing effort, a global approach was adopted. With which of the following factors did Red Bull most likely experience difficulty as the firm applied a global strategy for marketing?

Franchising offers all the following benefits for franchisers except

Which of the following lists the levels of involvement in global marketing from the lowest to the highest?

When the American company Exxon purchases crude oil from Saudi Arabia, it is engaging in

Select the true statement.

In what ways can a nation restrict the flow of imported goods?

Cultural relativism is the unconscious reference to one's own cultural values, experiences, and knowledge when traveling in other countries.

Under a licensing arrangement, the licensee pays commissions or royalties on sales or supplies used in manufacturing.

High Plains Furnishings, a furniture manufacturer in southern Montana, markets its furniture products in markets within the United States. It has also found several niche target markets in Finland, Chile, and Argentina. High Plains Furnishings is engaging in

It is impossible for a subsidiary to develop a local identity because it seldom employs personnel from the country within which it operates.

The World Trade Organization accomplishes all of the following except

The purchase of products from a foreign source is called

A special form of licensing in which one company grants another company the right to market its product in accordance with its standards in exchange for a financial commitment is called

An Overview of Strategic Marketing

Planning Implementing and Evaluating Marketing Strategies

The Marketing Environment

Social Responsibility and Ethics in Marketing

Marketing Research and Information Systems

Target Markets: Segmentation and Evaluation

Consumer Buying Behavior

Business Markets and Buying Behavior

Digital Marketing and Social Networking

Product Concepts

Developing and Managing Products

Services Marketing

Branding and Packaging

Marketing Channels and Supply Chain Management

Retailing, Direct Marketing, and Wholesaling

Integrated Marketing Communications

Advertising and Public Relations

Personal Selling and Sales Promotion

Pricing Concepts

Setting Prices

Filters