Question 1

Coca-Cola and Pepsi-Cola are both now available in about 200 countries and territories across the world, making the soft drink industry an example of

Accepted Answer

A)  global competition. 
B)  acculturation. 
C)  free trade. 
D)  global branding. 
E)  transactional exchange.

Question 2

All of the following are disadvantages of licensing except which?

Accepted Answer

A)  The licensor has reduced potential profits compared to direct investment. 
B)  The foreign country does not benefit from increases in local employment for product manufacturing. 
C)  The licensor forgoes control of its product. 
D)  Should the licensee prove to be a poor choice, the name or reputation of the company may be harmed. 
E)  The licensor may be creating its own competition.

Question 3

A country's imports

Accepted Answer

A)  stimulate the imports of other countries. 
B)  have no effect on its exports. 
C)  have no relationship with its balance of payments. 
D)  affect its exports and exports affect its imports. 
E)  over time will decrease its overall economic activity.

Question 4

Which of the following types of firms would be most likely to use a global marketing strategy?

Accepted Answer

A)  multidomestic 
B)  multinational 
C)  international 
D)  transnational 
E)  open border

Question 5

In Japan, Japanese women give Japanese men chocolates on Valentine's Day. This is an example of

Accepted Answer

A)  custom. 
B)  value. 
C)  demographic pattern. 
D)  belief. 
E)  psychographics.

Question 6

As a general rule, ________ seems to work best when the consumer target market for the product is alike across countries and cultures-that is, consumers share the same desires, needs, and use for the product.

Accepted Answer

A)  product adaptation 
B)  product extension 
C)  product integration 
D)  product invention 
E)  product customization

Question 7

Which of the following statements regarding global brands is most accurate?

Accepted Answer

A)  A global brand has centrally coordinated marketing programs. 
B)  A global brand is marketed under different names but uses identical ads for all markets. 
C)  A global brand alters the product formulation or service for each geographical region. 
D)  A global brand delivers varying benefits based on the GDP of each country. 
E)  A global brand is a collaborative effort among several different transnational firms.

Question 8

Three types of companies populate and compete in the global marketplace. Identify and describe each type.

Accepted Answer

The answer of Three types of companies populate and compete...

Question 9

Semiotics is

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.

Question 10

Figure 7-4
-According to Figure 7-4 above, point D would most likely represent which option for entering the global marketplace?

Accepted Answer

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

Question 11

Figure 7-5
-Global companies have five strategies for matching products and their promotion efforts to global markets. According to Figure 7-5 above, Box E 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

Question 12

Define a currency exchange rate and discuss its importance to global companies.

Accepted Answer

The answer of Define a currency exchange rate and discuss...

Question 13

Global companies have five strategies for matching products and their promotion efforts to global markets. The strategy of selling virtually the same product in other countries is referred to as

Accepted Answer

A)  product adaptation. 
B)  product invention. 
C)  brand adaptation. 
D)  product extension. 
E)  product integration.

Question 14

If you wanted to set up a business importing amber jewelry from Latvia to the United States, you would have to plan on paying the U.S. Customs Service a government tax of roughly 11 percent of the value of the product as

Accepted Answer

A)  a bribe. 
B)  a tariff. 
C)  a subsidy. 
D)  an excise tax. 
E)  a quota.

Question 15

When a country's exports exceed its imports,

Accepted Answer

A)  it incurs a deficit in its balance of trade. 
B)  the result is the trade feedback effect. 
C)  it will try to rebalance its overall economy. 
D)  it will attempt to engage in a trade war. 
E)  it incurs a surplus in its balance of trade.

Question 16

Identify and describe the factors a company should consider in order to do a thorough cross-cultural analysis. In your answer, define cross-cultural analysis.

Accepted Answer

The answer of Identify and describe the factors a company...

Question 17

When a firm sells a product in a foreign country below its domestic price or below its actual cost, the practice is referred to as

Accepted Answer

A)  loss-leader pricing. 
B)  surplus marketing. 
C)  dumping. 
D)  second-market pricing. 
E)  entrepreneurial pricing.

Question 18

The North American Free Trade Agreement was designed to encourage free trade between

Accepted Answer

A)  North America, Central America, and South America. 
B)  the United States and the European Union. 
C)  member countries originally from NATO (North Atlantic Treaty Organization). 
D)  the United States, Canada, and Mexico. 
E)  the United States, Canada, and the United Kingdom.

Question 19

Government taxes on products or services entering a country that primarily serve to raise prices on imports are referred to as

Accepted Answer

A)  tariffs. 
B)  quotas. 
C)  WTO taxes. 
D)  foreign excise taxes. 
E)  trade subsidies.

Question 20

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.

Exam 7: Understanding and Reaching Global Consumers and Markets