Question 1

According to your text, ____ are small technology-based firms operating in international markets within two years of their establishment and realizing as much as 70 percent of their sales outside the domestic home market.

Accepted Answer

A) "natural globals" 
B) "multinational corporations" 
C) "born globals" 
D) "born multinationals" 
E) "multinational enterprises"

Question 2

How does using an exporting intermediary limit the risk involved with global marketing?

Accepted Answer

A) Most exporting intermediaries assume all financial risks on behalf of their clients. 
B) Exporting intermediaries are not subject to the same laws as companies, and therefore limit the legal risk involved. 
C) Using an exporting intermediary restricts a company to being involved with joint ventures and not direct ownership. 
D) Exporting intermediaries guarantee that the products a company is selling will be a good fit for the foreign markets they are entering. 
E) This approach involves limited risk because the company has no direct investment in the foreign country.

Question 3

Cultural differences do not affect marketing negotiations and decision-making behavior.

Accepted Answer

A) True 
 B)False

Question 4

Scenario 9.1
Use the following to answer the questions.
Harley-Davidson Motors manufactures all of its motorcycles in the U.S. at one of four sites. With a large number of its bikes sold in markets all around the world, it still retains the manufacturing close to the headquarters for several reasons, one being that its management wants to keep close watch on the quality of its products. However, for all the accessories, apparel, and other riding gear, Harley-Davidson contracts out to other manufacturers to produce the items with the Harley name and logo. Some of these items, particularly the apparel, are made in China. Lately, some members of the Harley Owners' Group (HOG) have been complaining to the company about this practice, citing that "everything Harley should be made in America".
-Refer to Scenario 9.1. At what level of involvement in international marketing is Harley-Davidson with regard to its bikes?

Accepted Answer

A) Full-scale 
B) Globalization 
C) Joint venture 
D) Direct ownership 
E) Exporting

Question 5

Questor Corporation owns the Spalding brand name but does not produce a single golf club or tennis ball. This arrangement is an example of what type of involvement level for international marketing?

Accepted Answer

A) Exporting 
B) Trading 
C) Joint venture 
D) Strategic alliance 
E) Licensing

Question 6

The World Trade Organization was an important outcome of the unification of Europe.

Accepted Answer

A) True 
 B)False

Question 7

____ refers to the idea that morality varies from one culture to another and that business practices are therefore differentially defined as right or wrong by particular cultures.

Accepted Answer

A) The self-reference criterion 
B) Global ethics 
C) Economic relativism 
D) Cultural relativism 
E) Moral relativism

Question 8

Government restrictions on the amount of a particular currency that can be bought or sold are known as import controls.

Accepted Answer

A) True 
 B)False

Question 9

Marketers of computer software, music CDs, and books are particularly affected by cultural differences in

Accepted Answer

A) socioeconomic status of citizens. 
B) advances in technology. 
C) differences in cross-cultural exchange behavior. 
D) ethical codes of conduct for businesses. 
E) standards regarding intellectual property.

Question 10

The country with the highest GDP is

Accepted Answer

A) Japan. 
B) the United Kingdom. 
C) Brazil. 
D) the United States. 
E) China.

Question 11

The passage of NAFTA was agreeable to all parties.

Accepted Answer

A) True 
 B)False

Question 12

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 13

Globalization of marketing involves developing marketing strategies as though the entire world (or major regions of it) were a single entity.

Accepted Answer

A) True 
 B)False

Question 14

Firms that have operations or subsidiaries located in many countries are referred to as

Accepted Answer

A) multinational enterprises. 
B) strategic alliances. 
C) joint ventures. 
D) international marketers. 
E) export alliances.

Question 15

The Mont Blanc Company plans to export expensive consumer gift items to Germany. The best overall economic measure of market potential would be Germany's

Accepted Answer

A) gross domestic product. 
B) gross domestic product per capita. 
C) gross national product. 
D) balance of trade. 
E) unemployment rate.

Question 16

All of the following European countries use a common currency, the _____, except for _____, which uses its own currency.

Accepted Answer

A) euro; France 
B) euro; England 
C) dollar; England 
D) euro; Germany 
E) euro; Austria

Question 17

Customers that travel the globe expect to be able to buy the same product in most of the world's more than 200 countries.

Accepted Answer

A) True 
 B)False

Question 18

Toshiba Electronics is very interested in taking advantage of business opportunities in India but does not have access to India's market. Toshiba has the patent on a low-cost, quality computer system that could assist small businesses in India. Sony Computer, Toshiba's competitor, is experienced in India's small business market but does not have a computer comparable to Toshiba's. If Toshiba and Sony work together to utilize these strengths to seize this opportunity in India, what type of business structure would they likely use?

Accepted Answer

A) Trading company 
B) Strategic alliance 
C) Licensing 
D) Direct ownership 
E) Exporting

Question 19

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 20

The joint venture approach has little appeal to industries involved in extraction of natural resources.

Accepted Answer

A) True 
 B)False

Exam 9: Reaching Global Markets

According to your text, ____ are small technology-based firms operating in international markets within two years of their establishment and realizing as much as 70 percent of their sales outside the domestic home market.

How does using an exporting intermediary limit the risk involved with global marketing?

Cultural differences do not affect marketing negotiations and decision-making behavior.

Questor Corporation owns the Spalding brand name but does not produce a single golf club or tennis ball. This arrangement is an example of what type of involvement level for international marketing?

The World Trade Organization was an important outcome of the unification of Europe.

____ refers to the idea that morality varies from one culture to another and that business practices are therefore differentially defined as right or wrong by particular cultures.

Government restrictions on the amount of a particular currency that can be bought or sold are known as import controls.

Marketers of computer software, music CDs, and books are particularly affected by cultural differences in

The country with the highest GDP is

The passage of NAFTA was agreeable to all parties.

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

Globalization of marketing involves developing marketing strategies as though the entire world (or major regions of it) were a single entity.

Firms that have operations or subsidiaries located in many countries are referred to as

The Mont Blanc Company plans to export expensive consumer gift items to Germany. The best overall economic measure of market potential would be Germany's

All of the following European countries use a common currency, the _, except for _, which uses its own currency.

Customers that travel the globe expect to be able to buy the same product in most of the world's more than 200 countries.

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

The joint venture approach has little appeal to industries involved in extraction of natural resources.