Question 1

A manufacturer retains more control over the export process when it deals with an export-management company than if it were to sell the goods outright to an export-trading company.

Accepted Answer

A) True 
 B)False

Question 2

In addition to natural resources, what exports are equally as important to Canada's economy?

Accepted Answer

A)  processed and packaged foods 
B)  machinery and automotive products 
C)  low-technology trade goods 
D)  melons and other wet fruits

Question 3

What organization was established as a result of the General Agreement on Tariffs and Trade?

Accepted Answer

A)  North American Free Trade Agreement 
B)  European Union 
C)  World Trade Organization 
D)  Free Trade Area of the Americas

Question 4

Which statement best describes the North American Free Trade Agreement (NAFTA)?

Accepted Answer

A)  The member nations of the NAFTA have agreed to create a trade bloc similar to that of the European Union. 
B)  The major aim of the NAFTA is to increase the level of literacy among the United States, Mexico, and Canada. 
C)  NAFTA has been successful in creating the Free Trade Area of the Americas, the world's largest free trade zone. 
D)  The member nations of NAFTA focus mainly on economic cooperation rather than on political integration.

Question 5

Dumping is the practice of selling a large volume of product into a foreign market at prices lower than the company's own domestic market.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following is the world's most frequently spoken language?

Accepted Answer

A)  Spanish 
B)  English 
C)  Mandarin 
D)  Arabic

Question 7

Joint ventures might be a reasonable alternative to direct investment for a company that is restricted by the host nation from direct ownership of facilities within the country.

Accepted Answer

A) True 
 B)False

Question 8

What would be included in the Free Trade Area of the Americas when goals are completed?

Accepted Answer

A)  Existing nations will become members of the World Trade Organization. 
B)  The World Trade Organization would be the largest free-trade zone in the world. 
C)  It would include nations from Central, North and South America. 
D)  More intensive customs procedures via General agreement on Trades and Tariffs.

Question 9

Product invention is an international marketing strategy that involves creating an entirely new product, or reinventing a product that is obsolete in the domestic market, to take advantage of unique foreign marketing opportunities.

Accepted Answer

A) True 
 B)False

Question 10

Before entering a country, what is the underlying foundation marketers need to determine it has?

Accepted Answer

A)  moral code 
B)  legal system 
C)  infrastructure 
D)  trade organization

Question 11

Who provides advice and assistance to Canadian businesses that want to enter foreign markets?

Accepted Answer

A)  World Trade Organization 
B)  Trade Commissioner Service 
C)  Canadian Tourism Commission 
D)  International Monetary Fund

Question 12

Nearly all trade officials of member countries are in agreement as to the direction the WTO should follow in pursuing its major policy initiatives.

Accepted Answer

A) True 
 B)False

Question 13

What do ISO 9000 standards set requirements for?

Accepted Answer

A)  quality in goods and services 
B)  prices 
C)  worker compensation 
D)  environmental protection

Question 14

What is the basic purpose of protective tariffs?

Accepted Answer

A)  to raise money for the country into which the products are being imported 
B)  to raise the retail prices of imported products to match or exceed those of similar domestic products 
C)  to counter the effects of tariffs on the domestic market 
D)  to stabilize the prices of imported goods

Question 15

Pizza Hut franchises stores in areas with Arab and Indian populations. To accommodate dietary restrictions, the traditional North American recipes are modified. Consequently, the advertising, packaging, and promotional message will change. Marketers refer to these changes as dual adaptation.

Accepted Answer

A) True 
 B)False

Question 16

Tariffs designed to protect domestic industries can often end up penalizing domestic consumers.

Accepted Answer

A) True 
 B)False

Question 17

Compare a free trade area, an economic union, and a customs market.

Accepted Answer

The answer of Compare a free trade area, an economic...

Question 18

Match each item to the statement or sentence listed below.
a.exporting
b.World Trade Organization
c.infrastructure
d.exchange rate
e.tariff
f.import quota
g.dumping
h.ISO certification
i.foreign licensing
j.multinational corporation
k.global marketing strategy
l.multi-domestic marketing strategy
m.countertrade
n.joint venture
o.exchange control
p.customs union
q.Free Trade Area of the Americas
r.European Union
s.importer
t.embargo
u.franchise
-A(n) _____ is an application of market segmentation to foreign markets by tailoring the firm's marketing mix to match specific target markets in each nation.

Accepted Answer

The answer of Match each item to the statement or...

Question 19

Match each item to the statement or sentence listed below.
a.exporting
b.World Trade Organization
c.infrastructure
d.exchange rate
e.tariff
f.import quota
g.dumping
h.ISO certification
i.foreign licensing
j.multinational corporation
k.global marketing strategy
l.multi-domestic marketing strategy
m.countertrade
n.joint venture
o.exchange control
p.customs union
q.Free Trade Area of the Americas
r.European Union
s.importer
t.embargo
u.franchise
-A(n) _____ is a form of trade restriction that imposes a complete ban on the import of specified products.

Accepted Answer

The answer of Match each item to the statement or...

Question 20

Which agreement has created opportunities for financial, legal, and accounting firms by including services under international trading rules?

Accepted Answer

A)  Treaty of Commerce and Navigation 
B)  Central American Free Trade Agreement-DR 
C)  General Agreement on Tariffs and Trade 
D)  North American Free Trade Agreement

Exam 7: Serving Global Markets

A manufacturer retains more control over the export process when it deals with an export-management company than if it were to sell the goods outright to an export-trading company.

In addition to natural resources, what exports are equally as important to Canada's economy?

What organization was established as a result of the General Agreement on Tariffs and Trade?

Which statement best describes the North American Free Trade Agreement (NAFTA) ?

Dumping is the practice of selling a large volume of product into a foreign market at prices lower than the company's own domestic market.

Which of the following is the world's most frequently spoken language?

Joint ventures might be a reasonable alternative to direct investment for a company that is restricted by the host nation from direct ownership of facilities within the country.

What would be included in the Free Trade Area of the Americas when goals are completed?

Product invention is an international marketing strategy that involves creating an entirely new product, or reinventing a product that is obsolete in the domestic market, to take advantage of unique foreign marketing opportunities.

Before entering a country, what is the underlying foundation marketers need to determine it has?

Who provides advice and assistance to Canadian businesses that want to enter foreign markets?

Nearly all trade officials of member countries are in agreement as to the direction the WTO should follow in pursuing its major policy initiatives.

What do ISO 9000 standards set requirements for?

What is the basic purpose of protective tariffs?

Pizza Hut franchises stores in areas with Arab and Indian populations. To accommodate dietary restrictions, the traditional North American recipes are modified. Consequently, the advertising, packaging, and promotional message will change. Marketers refer to these changes as dual adaptation.

Tariffs designed to protect domestic industries can often end up penalizing domestic consumers.

Compare a free trade area, an economic union, and a customs market.

Which agreement has created opportunities for financial, legal, and accounting firms by including services under international trading rules?