Question 1

The monetary value of all products and services produced in a country during one year is referred to as the

Accepted Answer

A) balance of trade. 
B) gross domestic product. 
C) national monetary reserve. 
D) monetary national balance. 
E) annual national product.

Question 2

A field of study that examines the correspondence between symbols and their role in the assignment of meaning for people is referred to as

Accepted Answer

A) back translation. 
B) symbiotics. 
C) semiotics. 
D) symbolic linguistics. 
E) cross-cultural analysis.

Question 3

Russia currently has a limit on pork of 400,000 metric tons annually that can be imported from any country.This restriction would be considered a

Accepted Answer

A) tariff. 
B) trade imbalance. 
C) limit tax. 
D) quota. 
E) subsidy.

Question 4

A global brand is a brand marketed under the same name in multiple countries with similar and centrally coordinated marketing programs.However,adaptations of global brands are made

Accepted Answer

A) only if required by government regulations in the host market. 
B) only in its initial introduction into a market and only until the brand is recognized. 
C) by domestic competitors causing brand confusion. 
D) only when necessary to better connect the brand to consumers in different markets. 
E) when there is a serious drop in market share.

Question 5

Which of the following types of firms would be most likely to use a global marketing strategy?

Accepted Answer

A) multidomestic 
B) multinational 
C) multicountry 
D) transnational 
E) transborder

Question 6

A global marketer selling consumer products and services must also consider what the average per capita or ________ is among a country's consumers and how the income is distributed to determine a nation's purchasing power.

Accepted Answer

A) buying capacity 
B) currency exchange risk 
C) purchasing power 
D) household income 
E) cost of living

Question 7

Explain the difference between indirect exporting and direct exporting.What are the advantages and disadvantages of each approach?

Accepted Answer

The answer of Explain the difference between indirect exporting and...

Question 8

Two-thirds of the commercial transactions in Russia involve nonmonetary forms of payment due to limits in formal operating procedures among financial institutions and even limits on the notion of private property there.These would best be described as constraints in the country's

Accepted Answer

A) capital infrastructure. 
B) political infrastructure. 
C) economic infrastructure. 
D) geopolitical system. 
E) financial exchange system.

Question 9

Although Russia now has a free economy,there are still some problems with its financial and legal systems,as well as with the notion of

Accepted Answer

A) private property. 
B) product promotion. 
C) paid advertising. 
D) community services. 
E) foreign exchange rates.

Question 10

Mary Kay,Inc. ,can be classified as which type of company when marketing its products around the world?

Accepted Answer

A) multinational firm 
B) transnational firm 
C) international firm 
D) global marketing firm 
E) multidomestic firm

Question 11

One global perspective on world trade views exports and imports as complementary economic flows.Explain this concept.

Accepted Answer

The answer of One global perspective on world trade views...

Question 12

Which form of entry into a global market makes a firm the most vulnerable to harm regarding its brand name or reputation?

Accepted Answer

A) direct exporting 
B) indirect exporting 
C) licensing 
D) direct investment 
E) joint venture

Question 13

In terms of the global marketplace,there are three primary types of companies: international firms,multinational firms,and transnational firms.The key factor that distinguishes one from another is

Accepted Answer

A) the firm's financial capacity to take risks. 
B) the willingness and ability to embrace diversity and cultural differences. 
C) the firm's orientation toward and strategy for global markets and marketing. 
D) the relative position of the product or service in terms of its life cycle. 
E) the relative size of the firm both in financial terms and in production capacity.

Question 14

Recently,the United States imposed a 35 percent tariff on Chinese tire imports in the hopes of sustaining U.S.jobs in tire manufacturing.This addition of tariffs is an example of

Accepted Answer

A) imposing the rule of eminent domain. 
B) increasing ethnocentrism. 
C) enhancing domestic imperialism. 
D) increasing protectionism. 
E) slowing countertrade.

Question 15

Consider the distribution channels through which a product manufactured in one country must travel to reach its destination in another country.The step that is the channel between two nations,moving the product from one country to another,is the

Accepted Answer

A) seller. 
B) seller's international marketing headquarters. 
C) channels within foreign nations. 
D) final consumer. 
E) channels between nations.

Question 16

A global market-entry strategy in which a foreign company and a local firm invest together to create a local business in order to share ownership,control,and profits of the new company is referred to as

Accepted Answer

A) licensing. 
B) a joint venture. 
C) direct exporting. 
D) contract assembly. 
E) dual adaptation.

Question 17

Generally,as the proportion of middle-income households in a country increases,the nation's purchasing power

Accepted Answer

A) levels off. 
B) decreases. 
C) increases. 
D) becomes less of an economic priority. 
E) becomes progressively unstable.

Question 18

U.S.citizens pay $5 billion more annually for shoes and Japanese citizens pay $6 billion more for rice than the actual cost of the products because

Accepted Answer

A) both countries have suffered major financial crises due a severe trade imbalance. 
B) both countries have imposed tariffs on imported goods to protect their domestic markets. 
C) both countries have imposed limits on the quantity of these goods that can leave their respective domestic markets. 
D) both products are considered essentials and as a result are more heavily taxed. 
E) these products were purchased at a lower price from nations that currently are under governmental sanctions.

Question 19

CAFTA-DR is a comprehensive free trade agreement between Costa Rica,the Dominican Republic,El Salvador,Guatemala,Honduras,Nicaragua,and

Accepted Answer

A) the United States. 
B) Panama. 
C) Belize. 
D) Cuba. 
E) Mexico.

Question 20

Figure 7-5
 
-Global companies have five strategies for matching products and their promotion efforts to global markets.According to Figure 7-5 above,B refers to which type of strategy?

Accepted Answer

A) product extension strategy 
B) communication adaptation strategy 
C) product adaptation strategy 
D) dual adaptation strategy 
E) product invention strategy

Exam 7: Understanding and Reaching Global Consumers and Markets