Question 1

A disadvantage of a joint venture arrangement when entering a new global market is that

Accepted Answer

A) intermediaries have the potential to harm the brand. 
B) the firm entering the foreign market must pay royalties to the other firm. 
C) one of the companies forgoes control over its product. 
D) the two companies may disagree about policies. 
E) this method is likely to provide the fewest subsidies from the host country's government. 
A) intermediaries have the potential to harm the brand. 
B) the firm entering the foreign market must pay royalties to the other firm. 
C) one of the companies forgoes control over its product. 
D) the two companies may disagree about policies. 
E) this method is likely to provide the fewest subsidies from the host country's government.

Question 2

An assessment of a country's or region's political-regulatory climate includes an analysis of its political stability and

Accepted Answer

A) economic infrastructure. 
B) stock market performance. 
C) trade regulations. 
D) cultural diversity. 
E) currency exchange rates. 
A) economic infrastructure. 
B) stock market performance. 
C) trade regulations. 
D) cultural diversity. 
E) currency exchange rates.

Question 3

Italy currently has a limit on the number of motorcycles that can be imported from Japan. This restriction would be considered a(n)

Accepted Answer

A) tariff. 
B) trade imbalance. 
C) excise tax. 
D) quota. 
E) subsidy. 
A) tariff. 
B) trade imbalance. 
C) excise tax. 
D) quota. 
E) subsidy.

Question 4

A Tokyo shopkeeper would have been wise to use __________ to verify the accuracy of the new sign in English he purchased for his dry cleaning business. The sign read, "Drop your pants here for best results," which he did not know had another suggestive meaning to native speakers.

Accepted Answer

A) cultural symbolism 
B) dialect transformation 
C) semantic analysis 
D) linguistic exchange 
E) back translation 
A) cultural symbolism 
B) dialect transformation 
C) semantic analysis 
D) linguistic exchange 
E) back translation

Question 5

Tiffany & Co. knows that Japanese are superstitious about the number four. As a result, Tiffany sells its fine glassware and china in sets of five, not four, in Japan. Tiffany uses its knowledge of __________ to avoid connecting its products with the number four.

Accepted Answer

A) trademarks 
B) visual icons 
C) cultural symbols 
D) brand names 
E) ethnic emblems 
A) trademarks 
B) visual icons 
C) cultural symbols 
D) brand names 
E) ethnic emblems

Question 6

Since 1963, the guiding principle of Mary Kay, Inc., has been based on

Accepted Answer

A) the Consumer Bill of Rights. 
B) the Golden Rule. 
C) caveat emptor. 
D) the American Marketing Association Statement of Ethics. 
E) maximizing profits so long as the firm stays within the rules. 
A) the Consumer Bill of Rights. 
B) the Golden Rule. 
C) caveat emptor. 
D) the American Marketing Association Statement of Ethics. 
E) maximizing profits so long as the firm stays within the rules.

Question 7

A global market entry strategy that entails a domestic firm actually investing in and owning a foreign subsidiary or division is referred to as

Accepted Answer

A) licensing. 
B) local assembly. 
C) a joint venture. 
D) direct investment. 
E) local manufacturing. 
A) licensing. 
B) local assembly. 
C) a joint venture. 
D) direct investment. 
E) local manufacturing.

Question 8

The U.S. Rice Millers' Association claims that if the Japanese rice market were opened to imports by lowering __________, lower prices would save Japanese consumers $6 billion annually and the United States would gain a large share of the Japanese rice market.

Accepted Answer

A) boycotts 
B) quotas 
C) sanctions 
D) tariffs 
E) subsidies 
A) boycotts 
B) quotas 
C) sanctions 
D) tariffs 
E) subsidies

Question 9

Once a company has decided to enter the global marketplace, it must select a means of market entry. Four general options exist: (1) __________, (2) licensing, (3) joint venture, and (4) direct investment.

Accepted Answer

A) exporting 
B) accreditation 
C) countertrading 
D) cooperative 
E) franchising 
A) exporting 
B) accreditation 
C) countertrading 
D) cooperative 
E) franchising

Question 10

A global brand is a brand marketed under the same name in multiple countries with similar and centrally coordinated marketing programs. However, adaptations of global brands are made

Accepted Answer

A) only if required by government regulations in the host market. 
B) only in its initial introduction into a market and only until the brand is recognized. 
C) by domestic competitors causing brand confusion. 
D) only when necessary to better connect the brand to consumers in different markets. 
E) when there is a serious drop in market share. 
A) only if required by government regulations in the host market. 
B) only in its initial introduction into a market and only until the brand is recognized. 
C) by domestic competitors causing brand confusion. 
D) only when necessary to better connect the brand to consumers in different markets. 
E) when there is a serious drop in market share.

Question 11

What type of exporting has the least amount of commitment and risk but will probably return the least profit?

Accepted Answer

A) direct 
B) indirect 
C) licensing 
D) joint 
E) unilateral 
A) direct 
B) indirect 
C) licensing 
D) joint 
E) unilateral

Question 12

Five trends in the past decade have significantly influenced the landscape of global marketing. One of them is

Accepted Answer

A) the rise of economic integration and free trade among nations. 
B) an increase in economic protectionism and a decline in free trade. 
C) a more aggressive attitude toward initiating international tariffs and quota systems. 
D) a decrease in most countries' GDP and a renewal of nationalism. 
E) an increase in most countries' GDP coupled with an increased degree of consumer ethnocentrism. 
A) the rise of economic integration and free trade among nations. 
B) an increase in economic protectionism and a decline in free trade. 
C) a more aggressive attitude toward initiating international tariffs and quota systems. 
D) a decrease in most countries' GDP and a renewal of nationalism. 
E) an increase in most countries' GDP coupled with an increased degree of consumer ethnocentrism.

Question 13

What is considered normal and expected about the way people do things in a specific country is referred to as

Accepted Answer

A) morals. 
B) ethics. 
C) values. 
D) customs. 
E) beliefs. 
A) morals. 
B) ethics. 
C) values. 
D) customs. 
E) beliefs.

Question 14

The Japanese manufacture tractors for rice paddies. They are smaller than most U.S. tractors and perfect for a weekend farmer who wants to tend to a small garden. The tractors are not sold in the United States through any authorized channels, yet they are available in the United States at prices below the manufacturer's suggested retail price. These Japanese tractors are being sold

Accepted Answer

A) through the gray market. 
B) under the table. 
C) over the counter. 
D) with bypassed global channels. 
E) by breaking the distribution monopoly. 
A) through the gray market. 
B) under the table. 
C) over the counter. 
D) with bypassed global channels. 
E) by breaking the distribution monopoly.

Question 15

Explain the difference between joint venture and direct investment market entry strategies. What are the advantages and disadvantages of each approach?

Accepted Answer

When a foreign company and a local firm

Question 16

Those in favor of protectionism argue that it

Accepted Answer

A) helps reduce tariffs and quotas. 
B) encourages the development of domestic industries. 
C) encourages economic reliance on foreign countries. 
D) creates opportunities for the outsourcing of domestic jobs. 
E) creates a more favorable environment for a global economy. 
A) helps reduce tariffs and quotas. 
B) encourages the development of domestic industries. 
C) encourages economic reliance on foreign countries. 
D) creates opportunities for the outsourcing of domestic jobs. 
E) creates a more favorable environment for a global economy.

Question 17

When a U.S. airplane manufacturer sells its airplanes to a company in Germany without using intermediaries, it is referred to as

Accepted Answer

A) direct exporting. 
B) indirect exporting. 
C) licensing. 
D) foreign manufacturing. 
E) foreign assembly. 
A) direct exporting. 
B) indirect exporting. 
C) licensing. 
D) foreign manufacturing. 
E) foreign assembly.

Question 18

Cultural symbols refers to

Accepted Answer

A) ideas that can be protected by international copyrights. 
B) ideas that cannot be expressed by words or characters. 
C) things that represent values that exist solely within a nation. 
D) things that represent ideas and concepts. 
E) words that represent pictures or designs. 
A) ideas that can be protected by international copyrights. 
B) ideas that cannot be expressed by words or characters. 
C) things that represent values that exist solely within a nation. 
D) things that represent ideas and concepts. 
E) words that represent pictures or designs.

Question 19

A global brand refers to

Accepted Answer

A) two or more domestic products that coincidentally share the same brand name but represent two completely unrelated products. 
B) two or more international products that coincidentally share the same brand name but represent two completely unrelated products. 
C) a brand marketed under the same name in multiple countries with similar and centrally coordinated marketing programs. 
D) a brand that is essentially the same but that has minor adaptations made to meet the more specific needs of different nations. 
E) a brand marketed under different names in multiple countries with similar and centrally coordinated marketing programs. 
A) two or more domestic products that coincidentally share the same brand name but represent two completely unrelated products. 
B) two or more international products that coincidentally share the same brand name but represent two completely unrelated products. 
C) a brand marketed under the same name in multiple countries with similar and centrally coordinated marketing programs. 
D) a brand that is essentially the same but that has minor adaptations made to meet the more specific needs of different nations. 
E) a brand marketed under different names in multiple countries with similar and centrally coordinated marketing programs.

Question 20

Play devil's advocate. Select any American industry and argue persuasively why protectionism is not only patriotic, it is absolutely essential for survival.

Accepted Answer

A quality answer will provide at least t

Exam 7: Understanding and Reaching Global Consumers and Markets

A disadvantage of a joint venture arrangement when entering a new global market is that

An assessment of a country's or region's political-regulatory climate includes an analysis of its political stability and

Italy currently has a limit on the number of motorcycles that can be imported from Japan. This restriction would be considered a(n)

A Tokyo shopkeeper would have been wise to use __________ to verify the accuracy of the new sign in English he purchased for his dry cleaning business. The sign read, "Drop your pants here for best results," which he did not know had another suggestive meaning to native speakers.

Tiffany & Co. knows that Japanese are superstitious about the number four. As a result, Tiffany sells its fine glassware and china in sets of five, not four, in Japan. Tiffany uses its knowledge of __________ to avoid connecting its products with the number four.

Since 1963, the guiding principle of Mary Kay, Inc., has been based on

A global market entry strategy that entails a domestic firm actually investing in and owning a foreign subsidiary or division is referred to as

The U.S. Rice Millers' Association claims that if the Japanese rice market were opened to imports by lowering __________, lower prices would save Japanese consumers $6 billion annually and the United States would gain a large share of the Japanese rice market.

Once a company has decided to enter the global marketplace, it must select a means of market entry. Four general options exist: (1) __________, (2) licensing, (3) joint venture, and (4) direct investment.

A global brand is a brand marketed under the same name in multiple countries with similar and centrally coordinated marketing programs. However, adaptations of global brands are made

What type of exporting has the least amount of commitment and risk but will probably return the least profit?

Five trends in the past decade have significantly influenced the landscape of global marketing. One of them is

What is considered normal and expected about the way people do things in a specific country is referred to as

Explain the difference between joint venture and direct investment market entry strategies. What are the advantages and disadvantages of each approach?

Those in favor of protectionism argue that it

When a U.S. airplane manufacturer sells its airplanes to a company in Germany without using intermediaries, it is referred to as

Cultural symbols refers to

A global brand refers to

Play devil's advocate. Select any American industry and argue persuasively why protectionism is not only patriotic, it is absolutely essential for survival.

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 Multichannel Marketing

Pulling It All Together: the Strategic Marketing Process

Financial Aspects of Marketing

Building an Effective Marketing Plan

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