Question 1

What global market entry strategy did Mary Kay use when it entered India?

Accepted Answer

A) direct importing 
B) licensing 
C) indirect exporting 
D) joint venture 
E) direct exporting 
A) direct importing 
B) licensing 
C) indirect exporting 
D) joint venture 
E) direct exporting

Question 2

Which of the following statements about bribery is most accurate?

Accepted Answer

A) Bribes, kickbacks, and payoffs offered to entice someone to commit an illegal or improper act are deemed corrupt in some cultures but not in others. 
B) The world's major exporting nations have agreed to treat bribery of foreign government officials as a violation of trade agreements. 
C) Bribes paid to foreign companies are in some cases a tax-deductible expense in the United States. 
D) It is a crime for U.S. corporations to bribe an official of a foreign government or political party unless preapproved by the Federal Trade Commission. 
E) It is illegal for a U.S. corporation to bribe an official of a foreign government or political party to obtain or retain business in a foreign country. 
A) Bribes, kickbacks, and payoffs offered to entice someone to commit an illegal or improper act are deemed corrupt in some cultures but not in others. 
B) The world's major exporting nations have agreed to treat bribery of foreign government officials as a violation of trade agreements. 
C) Bribes paid to foreign companies are in some cases a tax-deductible expense in the United States. 
D) It is a crime for U.S. corporations to bribe an official of a foreign government or political party unless preapproved by the Federal Trade Commission. 
E) It is illegal for a U.S. corporation to bribe an official of a foreign government or political party to obtain or retain business in a foreign country.

Question 3

A quota refers to

Accepted Answer

A) a government tax on products or services entering a country that primarily serves to raise prices on imports. 
B) government payments to companies or industries that serve to lower costs and provide a competitive advantage to domestic industries. 
C) a restriction placed on the amount of a product allowed to enter or leave a country. 
D) a minimum requirement for the purchase of specific products or services between two nations. 
E) a refusal to purchase or exchange products or services with another nation unless certain financial or ideological requirements have been satisfied. 
A) a government tax on products or services entering a country that primarily serves to raise prices on imports. 
B) government payments to companies or industries that serve to lower costs and provide a competitive advantage to domestic industries. 
C) a restriction placed on the amount of a product allowed to enter or leave a country. 
D) a minimum requirement for the purchase of specific products or services between two nations. 
E) a refusal to purchase or exchange products or services with another nation unless certain financial or ideological requirements have been satisfied.

Question 4

A form of low-risk and capital-free entry into international markets that includes local manufacturing is referred to as

Accepted Answer

A) indirect exporting. 
B) direct ownership. 
C) joint ventures. 
D) licensing. 
E) direct exporting. 
A) indirect exporting. 
B) direct ownership. 
C) joint ventures. 
D) licensing. 
E) direct exporting.

Question 5

Which of the following statements about the World Trade Organization (WTO) is most accurate?

Accepted Answer

A) The WTO is an institution that sets rules governing trade between its members. 
B) The WTO acts as an agent in trade negotiations between its members and the remainder of the world. 
C) The 183 member countries of the WTO account for approximately 55 percent of world trade. 
D) The WTO uses panels of trade experts who issue nonbinding recommendations. 
E) The WTO was formed by the United Nations. 
A) The WTO is an institution that sets rules governing trade between its members. 
B) The WTO acts as an agent in trade negotiations between its members and the remainder of the world. 
C) The 183 member countries of the WTO account for approximately 55 percent of world trade. 
D) The WTO uses panels of trade experts who issue nonbinding recommendations. 
E) The WTO was formed by the United Nations.

Question 6

Global consumers refers to

Accepted Answer

A) all potential consumers for any and all products or services regardless of cultural, ethnic, or national origins. 
B) customers within a nation who consider the entire world a single marketplace. 
C) consumer groups living in many countries or regions of the world who have similar needs or seek similar features and benefits from products or services. 
D) consumer groups living in many countries or regions of the world that have similar needs but seek customized features and benefits from products or services that reflect their individual cultures. 
E) multinational organizations whose products incorporate raw materials, assembly, and distribution contributions from multiple nations before they are marketed. 
A) all potential consumers for any and all products or services regardless of cultural, ethnic, or national origins. 
B) customers within a nation who consider the entire world a single marketplace. 
C) consumer groups living in many countries or regions of the world who have similar needs or seek similar features and benefits from products or services. 
D) consumer groups living in many countries or regions of the world that have similar needs but seek customized features and benefits from products or services that reflect their individual cultures. 
E) multinational organizations whose products incorporate raw materials, assembly, and distribution contributions from multiple nations before they are marketed.

Question 7

Select Service Partner (SSP) Group has operations in 30 countries involving food and beverage establishments, often in transit hubs such as airports and railway stations. SSP also operates Starbucks locations in airports in Finland, Sweden, and Norway. SSP pays Starbucks a royalty based on sales, as well as a fee for each store. In these instances, Starbucks is engaged in

Accepted Answer

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

Question 8

What option would allow a company to make the least number of changes in terms of its product, its organization, and even its corporate goals when entering the global marketplace?

Accepted Answer

A) joint venture 
B) licensing 
C) exporting 
D) direct investment 
E) franchise 
A) joint venture 
B) licensing 
C) exporting 
D) direct investment 
E) franchise

Question 9

Kit Kat bars are marketed by Nestlé worldwide. Kit Kat is pronounced "kitto katsu" in Japanese, which roughly translates to "surely win." Japanese teens eat Kit Kat bars for good luck, particularly when taking crucial school exams. This positive result might have been missed had the company used __________ and felt it necessary to use a name without an additional meaning.

Accepted Answer

A) intentional transliteration 
B) semantic symbolism 
C) back translation 
D) semantic analysis 
E) linguistic exchange 
A) intentional transliteration 
B) semantic symbolism 
C) back translation 
D) semantic analysis 
E) linguistic exchange

Question 10

Global companies have five strategies for matching products and their promotion efforts to global markets. A create new product emphasis refers to which type of strategy?

Accepted Answer

A) product extension strategy 
B) product adaptation strategy 
C) dual adaptation strategy 
D) product invention strategy 
E) communication adaptation strategy 
A) product extension strategy 
B) product adaptation strategy 
C) dual adaptation strategy 
D) product invention strategy 
E) communication adaptation strategy

Question 11

Even though there are hundreds of different languages and dialects, the three major languages used in global diplomacy and commerce are

Accepted Answer

A) English, Japanese, and Chinese. 
B) English, French, and Spanish. 
C) Japanese, Spanish, and French. 
D) Japanese, Spanish, and English. 
E) Spanish, English, and Chinese. 
A) English, Japanese, and Chinese. 
B) English, French, and Spanish. 
C) Japanese, Spanish, and French. 
D) Japanese, Spanish, and English. 
E) Spanish, English, and Chinese.

Question 12

In Europe, North America, South America, and the industrialized nations of Asia, those 13 to 19 years old

Accepted Answer

A) are more similar than different regarding their purchase behaviors. 
B) are becoming more similar, but still differ significantly in terms of fashion and design. 
C) are rebelling against the Americanization of fashion and culture. 
D) have very different tastes in fashions and music. 
E) are more influenced by Asian culture than European culture. 
A) are more similar than different regarding their purchase behaviors. 
B) are becoming more similar, but still differ significantly in terms of fashion and design. 
C) are rebelling against the Americanization of fashion and culture. 
D) have very different tastes in fashions and music. 
E) are more influenced by Asian culture than European culture.

Question 13

The EU has benefited firms in its member nations because

Accepted Answer

A) it provides a safe haven in times of world economic crises. 
B) there is a common language advantage among EU consumers. 
C) most companies within the EU are engaging in strategic global partnerships. 
D) there is now a legally binding code of economic conduct. 
E) firms do not need to market their products and services on a nation-by-nation basis. 
A) it provides a safe haven in times of world economic crises. 
B) there is a common language advantage among EU consumers. 
C) most companies within the EU are engaging in strategic global partnerships. 
D) there is now a legally binding code of economic conduct. 
E) firms do not need to market their products and services on a nation-by-nation basis.

Question 14

A New York car wash owner wanted to open a car wash in Quebec, Canada. He hired a U.S. translator to create signage for the new venture and to design some simple advertising. It was not until the business was opened that he realized he should have used __________. His French signs actually said "car bath" instead of "car wash."

Accepted Answer

A) Esperanto 
B) back translation 
C) semiotics 
D) semantic symbolism 
E) linguistic exchange 
A) Esperanto 
B) back translation 
C) semiotics 
D) semantic symbolism 
E) linguistic exchange

Question 15

A global market entry strategy in which a company produces goods in one country and sells them in another country is referred to as

Accepted Answer

A) exporting. 
B) direct investment. 
C) countertrade. 
D) licensing. 
E) multinational marketing. 
A) exporting. 
B) direct investment. 
C) countertrade. 
D) licensing. 
E) multinational marketing.

Question 16

A firm's profit potential and control over marketing activities increases as it moves from exporting to direct investment as a global market entry strategy. But so does the firm's

Accepted Answer

A) likelihood of long-term success. 
B) financial commitment and risk. 
C) vulnerability to political changes and doctrines. 
D) need for a more educated workforce. 
E) need for a larger workforce. 
A) likelihood of long-term success. 
B) financial commitment and risk. 
C) vulnerability to political changes and doctrines. 
D) need for a more educated workforce. 
E) need for a larger workforce.

Question 17

"A signal that the world's trading nations are committed to open markets-and will resist protectionism-would inject confidence and energy into our markets," says the Office of the U.S. Trade Representative. Discuss this statement.

Accepted Answer

This statement indicates that the U.S. T

Question 18

Values refers to

Accepted Answer

A) personally or socially held core beliefs that are consistent within a given culture. 
B) the beliefs that dictate a person's behavior, which are often derived from a religious code of conduct. 
C) personally or socially preferable modes of conduct or states of existence that tend to persist over time. 
D) the innate sense of what a person considers to be right or wrong in terms of his or her own conduct when dealing with others. 
E) those personality traits regarding honesty and integrity that have been passed down from generation to generation. 
A) personally or socially held core beliefs that are consistent within a given culture. 
B) the beliefs that dictate a person's behavior, which are often derived from a religious code of conduct. 
C) personally or socially preferable modes of conduct or states of existence that tend to persist over time. 
D) the innate sense of what a person considers to be right or wrong in terms of his or her own conduct when dealing with others. 
E) those personality traits regarding honesty and integrity that have been passed down from generation to generation.

Question 19

____________ is the tendency to believe that it is inappropriate, indeed immoral, to purchase foreign-made products.

Accepted Answer

A) Country partisanship 
B) Cultural ethnocentrism 
C) Economic ethnocentrism 
D) Consumer ethnocentrism 
E) Nationalism 
A) Country partisanship 
B) Cultural ethnocentrism 
C) Economic ethnocentrism 
D) Consumer ethnocentrism 
E) Nationalism

Question 20

Fran Wilson Creative Cosmetics attributes its success to a top-quality product, effective advertising, and a novel __________ strategy.

Accepted Answer

A) joint venture 
B) licensing 
C) franchising 
D) indirect export 
E) direct investment 
A) joint venture 
B) licensing 
C) franchising 
D) indirect export 
E) direct investment

Exam 7: Understanding and Reaching Global Consumers and Markets

What global market entry strategy did Mary Kay use when it entered India?

Which of the following statements about bribery is most accurate?

A quota refers to

A form of low-risk and capital-free entry into international markets that includes local manufacturing is referred to as

Which of the following statements about the World Trade Organization (WTO) is most accurate?

Global consumers refers to

What option would allow a company to make the least number of changes in terms of its product, its organization, and even its corporate goals when entering the global marketplace?

Global companies have five strategies for matching products and their promotion efforts to global markets. A create new product emphasis refers to which type of strategy?

Even though there are hundreds of different languages and dialects, the three major languages used in global diplomacy and commerce are

In Europe, North America, South America, and the industrialized nations of Asia, those 13 to 19 years old

The EU has benefited firms in its member nations because

A global market entry strategy in which a company produces goods in one country and sells them in another country is referred to as

A firm's profit potential and control over marketing activities increases as it moves from exporting to direct investment as a global market entry strategy. But so does the firm's

"A signal that the world's trading nations are committed to open markets-and will resist protectionism-would inject confidence and energy into our markets," says the Office of the U.S. Trade Representative. Discuss this statement.

Values refers to

____________ is the tendency to believe that it is inappropriate, indeed immoral, to purchase foreign-made products.

Fran Wilson Creative Cosmetics attributes its success to a top-quality product, effective advertising, and a novel __________ strategy.

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

Filters