Question 1

Private-label manufacturing by a foreign country is called franchising.

Accepted Answer

A) True 
 B)False

Question 2

Suppose three months ago the dollar price of a yen was $0.012.Today the dollar price of one yen is $0.018.If you are in the market for a brand new Honda automobile today,you will find that:

Accepted Answer

A)  the price of the auto will be much less than it was three months ago 
B)  you will have trouble purchasing an auto because the dealership cannot keep up with the high demand 
C)  it will be impossible to obtain financing for the new auto 
D)  you will have to pay more for the auto than you would have paid three months ago 
E)  the trade-in value of your old vehicle will be much less than it would have been three months ago

Question 3

According to the text,which of the following is an example of a product strategy that would be appropriate for a global marketing company to implement?

Accepted Answer

A)  Product adaptation 
B)  Product divestment 
C)  Product penetration 
D)  Market substitution 
E)  Product licensing

Question 4

The form of global organization that provides the highest potential for return on investment as well as the highest level of risk is contract manufacturing.

Accepted Answer

A) True 
 B)False

Question 5

Describe the four stages of business globalization.Why do most companies stop when they reach the third stage?

Accepted Answer

The answer of Describe the four stages of business globalization.Why...

Question 6

Which method of entering the global marketplace would be most risky?

Accepted Answer

A)  licensing 
B)  direct investment 
C)  contract manufacturing 
D)  joint ventures 
E)  exporting

Question 7

Which of the following is a criticism of multinational corporations?

Accepted Answer

A)  Multinationals sometimes support reactionary and oppressive regimes. 
B)  Multinationals require excessive employment information. 
C)  Multinationals often engage in countertrading. 
D)  Multinationalism is responsible for the transference of labor-intensive technology. 
E)  Multinationals do not do enough to standardize their marketing mixes.

Question 8

Globalization:

Accepted Answer

A)  relies on strong government regulations to keep down prices 
B)  promotes economic freedom and increases living standards 
C)  tends to dry up the flow of foreign capital in less developed countries 
D)  has made it easier for governments to abuse the freedom and property of their citizens 
E)  has kept wages low in developing countries around the world

Question 9

When European demand for a certain solvent declined,Dow Chemical instructed its German plant to switch to manufacturing a chemical that had been imported from Louisiana and Texas.Dow Chemical would be best described as a(n):

Accepted Answer

A)  global enterprise 
B)  global trader 
C)  cultural marketer 
D)  exporting company 
E)  multinational corporation

Question 10

DeLouis owns an agency that specializes in bringing international buyers in contact with U.S.companies to facilitate global trade.What type of intermediary is DeLouis?

Accepted Answer

A)  Buyer for export 
B)  Export broker 
C)  License agent 
D)  Import agent 
E)  Export agent

Question 11

In the wake of the global recession of 2008-2009,many countries have:

Accepted Answer

A)  aggressively sought new trade agreements 
B)  all but eliminated tariffs and quotas 
C)  tightened environmental regulations and improved working conditions for low-income employees 
D)  moved toward protectionism 
E)  drastically reduced imports and exports

Question 12

A tax levied on the goods entering a country is called a(n):

Accepted Answer

A)  license 
B)  quota 
C)  boycott 
D)  exchange control 
E)  tariff

Question 13

Patch Products is an Australian company that has given permission to several Latin American companies to manufacture and market its patented Spanish/English children's frame tray puzzles.Because Patch uses licensing as its global marketing strategy,it:

Accepted Answer

A)  must only pay a minimal royalty to the licensed companies 
B)  cannot control how the puzzles are manufactured 
C)  has involved itself in the global marketing strategy that gives it the greatest amount of control 
D)  cannot have any control over how the puzzles are promoted or distributed 
E)  chose a method of global marketing that created minimal risk

Question 14

A U.S.executive had no idea the Germans tend to be very risk-averse.When he arrived at a meeting in Berlin,he simply stressed the price of his firm's products without emphasizing their bottom-line benefits,promoting the company's strong service support,or guaranteeing their effectiveness.As a result,the multimillion dollar deal failed.The U.S.executive overlooked the importance of which environmental factor?

Accepted Answer

A)  Culture 
B)  Demographics 
C)  Natural resources 
D)  Economic development 
E)  Political structure

Question 15

Sawyer Components manufactures high-cost,customized roller parts for paper mills and is expanding into China because of the opportunity for significant growth in this developing country.The owner uses effective global strategies and is aware of threats from foreign competitors.This illustrates that the owner has a global:

Accepted Answer

A)  advantage 
B)  imperative 
C)  vision 
D)  outsource 
E)  introspection

Question 16

In a newspaper release,Corning,Inc.announced it had received a favorable ruling from China's Ministry of Commerce on allegations that it was selling its fiber more cheaply in China than in other countries.Corning was falsely accused of:

Accepted Answer

A)  dumping 
B)  offloading 
C)  boycotting 
D)  repatriating 
E)  crossdocking

Question 17

A multinational company that makes a labor-intensive product would be interested in the _____ makeup of countries.Factors such as median age,gender,and literacy rates would determine the success of its global expansion.

Accepted Answer

A)  demographic 
B)  lifestyle 
C)  natural 
D)  cultural 
E)  economic

Question 18

The European Union Commission and the courts have come under widespread criticism for "rubber-stamping" or approving most business deals involving U.S.multinationals.

Accepted Answer

A) True 
 B)False

Question 19

Individuals and organizations utilizing a global vision to effectively market goods and services across the world are engaged in:

Accepted Answer

A)  international selling schemes 
B)  borderless commerce 
C)  global marketing standardization 
D)  global logistics 
E)  global marketing

Question 20

A soft drink manufacturer who was thinking of investing in a bottling plant in the Czech Republic should know the nation is proud of the fact it is among the world's biggest beer drinkers.Czechs consume an average of one-half liter of beer a day for every man,woman,and child in the country.The _____ environment of this country could very easily prevent the soft drink bottling company from succeeding.

Accepted Answer

A)  demographic 
B)  economic 
C)  cultural 
D)  political 
E)  technological

Exam 5: Developing a Global Vision

Private-label manufacturing by a foreign country is called franchising.

Suppose three months ago the dollar price of a yen was $0.012.Today the dollar price of one yen is $0.018.If you are in the market for a brand new Honda automobile today,you will find that:

According to the text,which of the following is an example of a product strategy that would be appropriate for a global marketing company to implement?

The form of global organization that provides the highest potential for return on investment as well as the highest level of risk is contract manufacturing.

Describe the four stages of business globalization.Why do most companies stop when they reach the third stage?

Which method of entering the global marketplace would be most risky?

Which of the following is a criticism of multinational corporations?

Globalization:

When European demand for a certain solvent declined,Dow Chemical instructed its German plant to switch to manufacturing a chemical that had been imported from Louisiana and Texas.Dow Chemical would be best described as a(n) :

DeLouis owns an agency that specializes in bringing international buyers in contact with U.S.companies to facilitate global trade.What type of intermediary is DeLouis?

In the wake of the global recession of 2008-2009,many countries have:

A tax levied on the goods entering a country is called a(n) :

Patch Products is an Australian company that has given permission to several Latin American companies to manufacture and market its patented Spanish/English children's frame tray puzzles.Because Patch uses licensing as its global marketing strategy,it:

In a newspaper release,Corning,Inc.announced it had received a favorable ruling from China's Ministry of Commerce on allegations that it was selling its fiber more cheaply in China than in other countries.Corning was falsely accused of:

A multinational company that makes a labor-intensive product would be interested in the _____ makeup of countries.Factors such as median age,gender,and literacy rates would determine the success of its global expansion.

The European Union Commission and the courts have come under widespread criticism for "rubber-stamping" or approving most business deals involving U.S.multinationals.

Individuals and organizations utilizing a global vision to effectively market goods and services across the world are engaged in: