Question 1

Under management contracting, a domestic firm .

Accepted Answer

A)   provides financial capital to a foreign company
B)   adopts management know-how from a foreign company
C)   manufactures the products of a foreign company
D)   exports management services to a foreign company
E)   exports its products to a foreign company D

Question 2

Which of the following is true about joint venturing?

Accepted Answer

A)   Contract manufacturing gives significant control to the domestic firm.
B)   Companies are required to invest in the construction of foreign-based facilities.
C)   Licensing is a highly complex method for entering global markets.
D)   A host country partner is necessary for selling or marketing products.
E)   Management contracting is highly risky for the domestic firm. D

Question 3

In considering whether to do business in a given country, a company should consider factors such as the country's attitudes toward international buying.

Accepted Answer

A) True 
 B)False  True

Question 4

Asiana, a fragrance manufacturer located in France, markets its products to the North American and Asian countries through independent distributors. In this case, Asiana has entered into international markets through .

Accepted Answer

A)   franchising
B)   joint venturing
C)   joint ownership
D)   direct investment
E)   indirect exporting

Question 5

Global branding and standardization result in reduced costs from economies of scale.

Accepted Answer

A) True 
 B)False

Question 6

The Bread Company promotes its brand in new international markets by providing rights to local bakeries and bistros to use its recipes and brand name. In this case, The Bread Company's market-entry strategy is referred to as .

Accepted Answer

A)   joint ownership
B)   contract manufacturing
C)   licensing
D)   management contracting
E)   exporting

Question 7

Walmart's decision to suspend its planned expansion into India's huge but fragmented retail market due to obstacles put in place by the host nation to protect its mom-and-pop retailers is an example of .

Accepted Answer

A)   excise duties
B)   quotas
C)   nontariff trade barriers
D)   tariffs
E)   exchange controls

Question 8

Management contracting is an unwise choice if a domestic firm can make greater profits by undertaking a whole venture.

Accepted Answer

A) True 
 B)False

Question 9

L'Oréal, the global cosmetics firm is evidence that global standardization is an all-or-nothing proposition.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following is most likely true about a global organization?

Accepted Answer

A)   Employees are recruited exclusively from the home country.
B)   Worldwide policies are planned by top corporate management.
C)   It considers itself a national marketer that sells abroad.
D)   Executive training is restricted to domestic operations.
E)   Global operating units report to international division chiefs.

Question 11

Which of the following is most likely a drawback of contract manufacturing?

Accepted Answer

A)   There is decreased control over the manufacturing process.
B)   There are low chances of quickly starting the process.
C)   There is little opportunity of later forming a partnership.
D)   There is no possibility of buying out the local manufacturer.
E)   There are significant political and economic risks involved.

Question 12

Toyota has manufacturing facilities in Cambridge and Woodstock Ontario. These are wholly-owned subsidiaries of the Japanese based company. Which of the following is an advantage of this direct investment?

Accepted Answer

A)   Direct investment allows a firm to keep full control over the investment.
B)   Direct investment involves minimal financial or time expenditures.
C)   Direct investment ensures that a firm is shielded from market changes.
D)   Direct investment protects the firm from currency devaluation.
E)   Direct investment involves fewer risks than joint ownership.

Question 13

Explain the whole-channel view of the distribution process.

Accepted Answer

The answer of Explain the whole-channel view of the distribution...

Question 14

means marketing a product in a foreign market without making any changes to the product.

Accepted Answer

A)   Communication extension
B)   Product invention
C)   Product adaptation
D)   Straight product extension
E)   Communication adaptation

Question 15

In managing their international marketing activities, most companies first .

Accepted Answer

A)   initiate foreign direct investment
B)   organize an export department
C)   create an international division
D)   organize an import department
E)   form a domestic subsidiary

Question 16

Which of the following is true of economic communities?

Accepted Answer

A)   They were formed to mediate global trade disputes.
B)   They tend to improve imports and hinder exports.
C)   They were formed to increase trade barriers between member nations.
D)   They require member countries to establish one currency.
E)   They are groups of nations organized to work toward common goals.

Question 17

What is the North American Free Trade Agreement (NAFTA)? In your answer make a reference to the updated agreement, which was ratified in 2020, renamed the CUSMA.

Accepted Answer

The answer of What is the North American Free Trade...

Question 18

Germany is an example of a(n) economy which is a major exporter of manufactured goods, services, and investment funds.

Accepted Answer

A)   Emerging
B)   Agricultural
C)   Industrial
D)   Subsistence
E)   Industrializing

Question 19

Tim Hortons has taken their iconic Canadian brand to Spain. They did so by . This is a method of entering a foreign market by associating with a host (one already established in Spain) company to produce or market products or services.

Accepted Answer

A)   importing
B)   joint venturing
C)   direct exporting
D)   indirect exporting
E)   direct investment

Question 20

Adapted global marketing is a global marketing approach that adjusts the marketing strategy and mix elements to each international target market.

Accepted Answer

A) True 
 B)False

Exam 15: The Global Marketplace

Under management contracting, a domestic firm .

Which of the following is true about joint venturing?

In considering whether to do business in a given country, a company should consider factors such as the country's attitudes toward international buying.

Asiana, a fragrance manufacturer located in France, markets its products to the North American and Asian countries through independent distributors. In this case, Asiana has entered into international markets through .

Global branding and standardization result in reduced costs from economies of scale.

The Bread Company promotes its brand in new international markets by providing rights to local bakeries and bistros to use its recipes and brand name. In this case, The Bread Company's market-entry strategy is referred to as .

Walmart's decision to suspend its planned expansion into India's huge but fragmented retail market due to obstacles put in place by the host nation to protect its mom-and-pop retailers is an example of .

Management contracting is an unwise choice if a domestic firm can make greater profits by undertaking a whole venture.

L'Oréal, the global cosmetics firm is evidence that global standardization is an all-or-nothing proposition.

Which of the following is most likely true about a global organization?

Which of the following is most likely a drawback of contract manufacturing?

Toyota has manufacturing facilities in Cambridge and Woodstock Ontario. These are wholly-owned subsidiaries of the Japanese based company. Which of the following is an advantage of this direct investment?

Explain the whole-channel view of the distribution process.

means marketing a product in a foreign market without making any changes to the product.

In managing their international marketing activities, most companies first .

Which of the following is true of economic communities?

What is the North American Free Trade Agreement (NAFTA)? In your answer make a reference to the updated agreement, which was ratified in 2020, renamed the CUSMA.

Germany is an example of a(n) economy which is a major exporter of manufactured goods, services, and investment funds.

Tim Hortons has taken their iconic Canadian brand to Spain. They did so by . This is a method of entering a foreign market by associating with a host (one already established in Spain) company to produce or market products or services.

Adapted global marketing is a global marketing approach that adjusts the marketing strategy and mix elements to each international target market.