Question 1

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

Accepted Answer

A) The World Trade Organization is a temporary institution. 
B) The 168 member countries of the WTO account for less than 25 percent of world trade. 
C) The WTO sets rules governing trade between its members and the rest of the world. 
D) The WTO uses panels of trade experts who can issue nonbinding recommendations. 
E) The WTO was formed by the major industrialized nations of the world. 
A) The World Trade Organization is a temporary institution. 
B) The 168 member countries of the WTO account for less than 25 percent of world trade. 
C) The WTO sets rules governing trade between its members and the rest of the world. 
D) The WTO uses panels of trade experts who can issue nonbinding recommendations. 
E) The WTO was formed by the major industrialized nations of the world.

Question 2

A small Canadian winery located in British Columbia has developed a superior wine. It has no overseas contacts but wants to get its wine on the shelves in selected Asian and European markets where growth has been substantial in the past two years. What type of exporting option would best suit this company?

Accepted Answer

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

Question 3

The world's largest manufacturer of peppermint candy canes was located in Albany, Georgia, until it could no longer afford to buy the sugar needed for its operation. It moved its manufacturing business to Mexico where there are no restrictions (like those that exist in the United States) on the amount of sugar that can be brought into the nation. The business moved to Mexico because of __________ established by the U.S. government.

Accepted Answer

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

Question 4

Indirect exporting refers to

Accepted Answer

A) offering the right to a trademark, patent, trade secret, or similarly valued item of intellectual property in return for a royalty or fee. 
B) selling a firm's domestically produced products in a foreign country without interference by that government. 
C) contracting with a foreign firm to manufacture products according to stated specifications. 
D) avoiding the use of additional parties when a firm sells its domestically produced products in another country. 
E) selling a firm's domestically produced products in a foreign country through an intermediary. 
A) offering the right to a trademark, patent, trade secret, or similarly valued item of intellectual property in return for a royalty or fee. 
B) selling a firm's domestically produced products in a foreign country without interference by that government. 
C) contracting with a foreign firm to manufacture products according to stated specifications. 
D) avoiding the use of additional parties when a firm sells its domestically produced products in another country. 
E) selling a firm's domestically produced products in a foreign country through an intermediary.

Question 5

Offering the right to a trademark, patent, trade secret, or similarly valued items of intellectual property in return for a royalty or fee is referred to as

Accepted Answer

A) direct exporting. 
B) indirect exporting. 
C) licensing. 
D) contract manufacturing. 
E) outside branding. 
A) direct exporting. 
B) indirect exporting. 
C) licensing. 
D) contract manufacturing. 
E) outside branding.

Question 6

Both Honda and Toyota have plants in the United States that use American labor. This illustrates Honda's and Toyota's use of

Accepted Answer

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

Question 7

For the marketer, a thorough __________ involves an understanding of and an appreciation for the values, customs, symbols, and language of other societies.

Accepted Answer

A) market synthesis 
B) international sociographic study 
C) anthropological examination 
D) cross-cultural analysis 
E) ethnocentrism assessment 
A) market synthesis 
B) international sociographic study 
C) anthropological examination 
D) cross-cultural analysis 
E) ethnocentrism assessment

Question 8

Which of the following statements about the emergence of a networked global marketspace is most accurate?

Accepted Answer

A) Marketspace creates an unfair competitive environment for emerging nations. 
B) More business-to-consumer marketing is done on the Internet than business-to-business marketing. 
C) The most active participants in the networked global marketspace are companies in developing nations. 
D) All business in the networked global marketspace is conducted in English. 
E) A networked global marketspace enables the exchange of products, services, and information from sellers anywhere to buyers anywhere at any time and at a lower cost. 
A) Marketspace creates an unfair competitive environment for emerging nations. 
B) More business-to-consumer marketing is done on the Internet than business-to-business marketing. 
C) The most active participants in the networked global marketspace are companies in developing nations. 
D) All business in the networked global marketspace is conducted in English. 
E) A networked global marketspace enables the exchange of products, services, and information from sellers anywhere to buyers anywhere at any time and at a lower cost.

Question 9

All nations and regions of the world do not participate equally in world trade. World trade flows reflect

Accepted Answer

A) the influences of culture and language. 
B) the differences among industries, countries, and regions. 
C) interdependencies among industries, countries, and regions. 
D) the challenges of currency and exchange imbalances. 
E) the increasing importance of services verses products. 
A) the influences of culture and language. 
B) the differences among industries, countries, and regions. 
C) interdependencies among industries, countries, and regions. 
D) the challenges of currency and exchange imbalances. 
E) the increasing importance of services verses products.

Question 10

In which option would two companies share the ownership, control, and profits of a new company designed to enter a foreign market?

Accepted Answer

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

Question 11

The practice of shielding one or more sectors of a country's economy from foreign competition through the use of tariffs or quotas is referred to as

Accepted Answer

A) domestic imperialism. 
B) protectionism. 
C) blocked competition. 
D) import taxation. 
E) trade restriction. 
A) domestic imperialism. 
B) protectionism. 
C) blocked competition. 
D) import taxation. 
E) trade restriction.

Question 12

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

Accepted Answer

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

Question 13

Generally, as the proportion of middle-income households in a country __________, the __________ a nation's purchasing power.

Accepted Answer

A) increases; greater 
B) increases; lesser 
C) decreases; greater 
D) levels off; greater 
E) There is no relationship between middle-income households and a nation's purchasing power. 
A) increases; greater 
B) increases; lesser 
C) decreases; greater 
D) levels off; greater 
E) There is no relationship between middle-income households and a nation's purchasing power.

Question 14

Eastman Kodak accused Japanese rival Fuji Photo Film of selling photographic paper in the United States for 25 percent below what it charges in Japan. In other words, Eastman Kodak accused Fuji of

Accepted Answer

A) tariff avoidance. 
B) countertrade. 
C) surplus marketing. 
D) dumping. 
E) underbidding. 
A) tariff avoidance. 
B) countertrade. 
C) surplus marketing. 
D) dumping. 
E) underbidding.

Question 15

Semiotics refers to

Accepted Answer

A) a field of study in marketing linguistics that identifies the connotative meanings behind words in order to create the most effective product or brand names. 
B) a field of study in marketing linguistics that identifies the connotative meanings behind words in order to create the most effective advertising messages. 
C) a field of study that examines the correspondence between symbols and their role in the assignment of meaning for people. 
D) a field of linguistics that translates words into internationally recognized symbols to help companies carry their product message across international boundaries. 
E) the practice where a translated word or phrase is retranslated into the original language by a different interpreter to catch errors. 
A) a field of study in marketing linguistics that identifies the connotative meanings behind words in order to create the most effective product or brand names. 
B) a field of study in marketing linguistics that identifies the connotative meanings behind words in order to create the most effective advertising messages. 
C) a field of study that examines the correspondence between symbols and their role in the assignment of meaning for people. 
D) a field of linguistics that translates words into internationally recognized symbols to help companies carry their product message across international boundaries. 
E) the practice where a translated word or phrase is retranslated into the original language by a different interpreter to catch errors.

Question 16

A researcher studying the fact that in some nations black is a sign of mourning while in others white is a sign of mourning would be studying

Accepted Answer

A) semiotics. 
B) semantics. 
C) semaphorics. 
D) cultural symbolism. 
E) cultural linguistics. 
A) semiotics. 
B) semantics. 
C) semaphorics. 
D) cultural symbolism. 
E) cultural linguistics.

Question 17

When foreign currencies can buy more U.S. dollars,

Accepted Answer

A) U.S. products are more expensive to foreign customers. 
B) U.S. products are more expensive to U.S. customers. 
C) U.S. products are less expensive to foreign customers. 
D) economists consider it an indicator of an impending long-term economic upturn. 
E) American consumers will buy in large quantities and stockpile in fear of an impending economic crisis. 
A) U.S. products are more expensive to foreign customers. 
B) U.S. products are more expensive to U.S. customers. 
C) U.S. products are less expensive to foreign customers. 
D) economists consider it an indicator of an impending long-term economic upturn. 
E) American consumers will buy in large quantities and stockpile in fear of an impending economic crisis.

Question 18

Most companies become involved in direct exporting when

Accepted Answer

A) foreign governments believe that they will benefit the most from allowing the entry of direct exports. 
B) emerging markets in foreign countries become economically viable. 
C) they believe their volume of sales will be sufficiently large and easy to obtain so that they do not require intermediaries. 
D) the domestic market becomes saturated with competing products and services. 
E) evolving technologies in foreign countries come online. 
A) foreign governments believe that they will benefit the most from allowing the entry of direct exports. 
B) emerging markets in foreign countries become economically viable. 
C) they believe their volume of sales will be sufficiently large and easy to obtain so that they do not require intermediaries. 
D) the domestic market becomes saturated with competing products and services. 
E) evolving technologies in foreign countries come online.

Question 19

Consider the distribution channels through which a product manufactured in one country must travel to reach its destination in another country. The distribution channels can be considered to have been successful when the product reaches the

Accepted Answer

A) seller. 
B) channels between nations. 
C) seller's international marketing headquarters. 
D) final consumer. 
E) channels within foreign nations. 
A) seller. 
B) channels between nations. 
C) seller's international marketing headquarters. 
D) final consumer. 
E) channels within foreign nations.

Question 20

Two-thirds of the commercial transactions in Russia involve nonmonetary forms of payment due to limits in formal operating procedures among financial institutions and even limits on the notion of private property there. These would best be described as constraints in the country's

Accepted Answer

A) capital infrastructure. 
B) political infrastructure. 
C) economic infrastructure. 
D) geopolitical system. 
E) financial exchange system. 
A) capital infrastructure. 
B) political infrastructure. 
C) economic infrastructure. 
D) geopolitical system. 
E) financial exchange system.

Exam 7: Understanding and Reaching Global Consumers and Markets

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

Indirect exporting refers to

Offering the right to a trademark, patent, trade secret, or similarly valued items of intellectual property in return for a royalty or fee is referred to as

Both Honda and Toyota have plants in the United States that use American labor. This illustrates Honda's and Toyota's use of

For the marketer, a thorough __________ involves an understanding of and an appreciation for the values, customs, symbols, and language of other societies.

Which of the following statements about the emergence of a networked global marketspace is most accurate?

All nations and regions of the world do not participate equally in world trade. World trade flows reflect

In which option would two companies share the ownership, control, and profits of a new company designed to enter a foreign market?

The practice of shielding one or more sectors of a country's economy from foreign competition through the use of tariffs or quotas is referred to as

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

Generally, as the proportion of middle-income households in a country __________, the __________ a nation's purchasing power.

Eastman Kodak accused Japanese rival Fuji Photo Film of selling photographic paper in the United States for 25 percent below what it charges in Japan. In other words, Eastman Kodak accused Fuji of

Semiotics refers to

A researcher studying the fact that in some nations black is a sign of mourning while in others white is a sign of mourning would be studying

When foreign currencies can buy more U.S. dollars,

Most companies become involved in direct exporting when

Consider the distribution channels through which a product manufactured in one country must travel to reach its destination in another country. The distribution channels can be considered to have been successful when the product reaches the

Two-thirds of the commercial transactions in Russia involve nonmonetary forms of payment due to limits in formal operating procedures among financial institutions and even limits on the notion of private property there. These would best be described as constraints in the country's

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

Generally, as the proportion of middle-income households in a country , the a nation's purchasing power.