Question 1

While NAFTA eliminates many tariffs immediately,the tariffs on more sensitive goods,such as glassware,footwear,and some fruits and vegetables,will be phased out over a 15-year period.

Accepted Answer

A) True 
 B)False

Question 2

Two-thirds of the world's total purchasing power is outside the United States.

Accepted Answer

A) True 
 B)False

Question 3

A special form of licensing in which one company grants another company the right to market its product in accordance with its standards in exchange for a financial commitment is called

Accepted Answer

A) a joint venture. 
B) contract manufacturing. 
C) direct licensing. 
D) franchising. 
E) a strategic alliance.

Question 4

Special interest groups and regulatory bodies are ____ forces that must be taken into account in international marketing.

Accepted Answer

A) socioeconomic 
B) technological 
C) economic 
D) social and ethical 
E) political and legal

Question 5

Exporting,licensing and franchising,trading companies,contract manufacturing,and joint ventures are preferred modes of international market entry for firms with an export department structure.

Accepted Answer

A) True 
 B)False

Question 6

When products are introduced into one nation from another,acceptance is far more likely

Accepted Answer

A) if prices are set very low. 
B) when bribes are paid to local officials to aid distribution. 
C) if there are similarities between the two cultures. 
D) if packaging is adjusted to match local preferences. 
E) when retailers are given incentives to push the products.

Question 7

Selling products that are not in demand in all world markets,such as hand-powered washing machines for use in countries where electricity is not universally available,represents an international marketing strategy focusing on

Accepted Answer

A) internationalization. 
B) culturalization. 
C) nationalization. 
D) globalization. 
E) customization.

Question 8

GATT is based on negotiations between member countries to reduce worldwide tariffs and increase international trade.

Accepted Answer

A) True 
 B)False

Question 9

If Tasmania levied a duty on all goods purchased from the United States and other countries outside its borders that were brought into Tasmania,its businesses and citizens would be paying a(n)

Accepted Answer

A) embargo. 
B) import tariff. 
C) travelers' tax. 
D) export tax. 
E) foreign duty.

Question 10

The Ford Motor Company has entered into an alliance with Yves Saint Laurent,a maker of clothing and one of the most successful fashion houses in the world.Yves Saint Laurent is headquartered in France.Ford will use Yves Saint Laurent designs and color traditions in its production of luxury models of the company's Expedition SUV and Lincoln vehicles.The Yves Saint Laurent elements will appear in the interior and body paint color.This alliance would most likely be classified as

Accepted Answer

A) a strategic alliance. 
B) a joint venture. 
C) a global direct ownership. 
D) a multinational enterprise. 
E) contract manufacturing.

Question 11

When asked where Laser Tools,Inc. ,markets its products,company president and founder Roger Helms says that "the world is just one big market." He feels anyone not taking this stance is systematically passing up profitable business.Helms's international marketing strategy is best described as

Accepted Answer

A) customization of marketing. 
B) globalization of marketing. 
C) limited exporting. 
D) full-scale international marketing. 
E) export agenting.

Question 12

If a certain country considered handshakes in business transactions to be taboo and preferred to use nodding,this would be an example of differences in ____ forces.

Accepted Answer

A) cultural 
B) political 
C) sales 
D) sociological 
E) regulatory

Question 13

Scenario 9.2
Use the following to answer the questions.
KFC opened its first franchised restaurant outside of North America in England in 1964.Now,over a billion KFC chicken dinners are sold annually at more than 80 countries and territories around the world.KFC has established its own processing plants in these countries to ensure the quality of its chickens and other food items.In the U.S. ,the menu at KFC is usually the same in all restaurants,with only a very few additional items available in different regions.However,when KFC first franchised into Asian countries,it added many unusual local delicacies to the menu-items such as fried octopus and squid.Additionally,the franchised stores in Asian countries display cooked food in "plates" near windows at the front of the store.This is a tradition for many restaurants in these countries-to offer the customer passing by a preliminary view of their product.
-Refer to Scenario 9.2.KFC's establishment of international production/processing facilities is an example of

Accepted Answer

A) direct ownership. 
B) franchising. 
C) strategic alliance. 
D) outsourcing. 
E) a trading company.

Question 14

In determining the size of the market for consumer products,the international marketer will probably be very interested in per capita GDP figures.

Accepted Answer

A) True 
 B)False

Question 15

Domestic marketing involves marketing strategies aimed at markets within the home country.

Accepted Answer

A) True 
 B)False

Question 16

Approximately ____ of the world's purchasing power is outside of the United States.

Accepted Answer

A) 1/10 
B) 1/3 
C) 2/3 
D) 1/2 
E) 9/10

Question 17

Japan's Sony Corporation is a prime example of a multinational enterprise.With this in mind,which of the following would most accurately characterize Sony's operations?

Accepted Answer

A) It follows a strategy of market globalization. 
B) It has operations or subsidiaries in many different countries. 
C) It places most of its emphasis on profits generated in foreign countries. 
D) It would not expect its foreign operations to share the same goals as the parent firm. 
E) It does not concern itself with differences in markets around the world.

Question 18

Which of the following lists the levels of involvement in global marketing from the lowest to the highest?

Accepted Answer

A) International marketing,limited exporting,domestic marketing,globalized marketing 
B) Limited exporting,domestic marketing,globalized marketing,international marketing 
C) Globalized marketing,international marketing,limited exporting,domestic marketing 
D) Domestic marketing,globalized marketing,international marketing,limited exporting 
E) Domestic marketing,limited exporting,international marketing,globalized marketing

Question 19

The Foreign Corrupt Practices Act of 1977 makes it illegal for U.S.firms to

Accepted Answer

A) attempt to make large payments or bribes to influence policy decisions of foreign governments. 
B) offer foreign businesses any type of incentive for purchasing their company's products and services. 
C) change their ethical standards when dealing with foreign firms. 
D) give even small tips or gifts in countries where such gifts are customary business practices. 
E) introduce any type of corruption into foreign businesses that have higher ethical standards than those of the U.S.firm.

Question 20

At the heart of the ____ are agreements that provide legal ground rules for international commerce and trade policy.

Accepted Answer

A) United Nations 
B) GATT 
C) MERCOSUR 
D) WTO 
E) APEC

Exam 9: Reaching Global Markets

While NAFTA eliminates many tariffs immediately,the tariffs on more sensitive goods,such as glassware,footwear,and some fruits and vegetables,will be phased out over a 15-year period.

Two-thirds of the world's total purchasing power is outside the United States.

A special form of licensing in which one company grants another company the right to market its product in accordance with its standards in exchange for a financial commitment is called

Special interest groups and regulatory bodies are ____ forces that must be taken into account in international marketing.

Exporting,licensing and franchising,trading companies,contract manufacturing,and joint ventures are preferred modes of international market entry for firms with an export department structure.

When products are introduced into one nation from another,acceptance is far more likely

Selling products that are not in demand in all world markets,such as hand-powered washing machines for use in countries where electricity is not universally available,represents an international marketing strategy focusing on

GATT is based on negotiations between member countries to reduce worldwide tariffs and increase international trade.

If Tasmania levied a duty on all goods purchased from the United States and other countries outside its borders that were brought into Tasmania,its businesses and citizens would be paying a(n)

When asked where Laser Tools,Inc. ,markets its products,company president and founder Roger Helms says that "the world is just one big market." He feels anyone not taking this stance is systematically passing up profitable business.Helms's international marketing strategy is best described as

If a certain country considered handshakes in business transactions to be taboo and preferred to use nodding,this would be an example of differences in ____ forces.

In determining the size of the market for consumer products,the international marketer will probably be very interested in per capita GDP figures.

Domestic marketing involves marketing strategies aimed at markets within the home country.

Approximately ____ of the world's purchasing power is outside of the United States.

Japan's Sony Corporation is a prime example of a multinational enterprise.With this in mind,which of the following would most accurately characterize Sony's operations?

Which of the following lists the levels of involvement in global marketing from the lowest to the highest?

The Foreign Corrupt Practices Act of 1977 makes it illegal for U.S.firms to

At the heart of the ____ are agreements that provide legal ground rules for international commerce and trade policy.