Question 1

An institution that sets rules governing trade between its members through a panel of trade experts who decide on trade disputes between members and issue binding decisions is referred to as the

Accepted Answer

A) League of Nations (LoN). 
B) World Trade Organization (WTO). 
C) Association for Commerce Equity (AC
E) . 
D) United Nations Board of Trade (UNBT). 
E) Global Better Business Bureau (BBB-G).

Question 2

When a country's exports exceed its imports,

Accepted Answer

A) it incurs a deficit in its balance of trade. 
B) the result is the trade feedback effect. 
C) it will try to rebalance its overall economy. 
D) it will attempt to engage in a trade war. 
E) it incurs a surplus in its balance of trade.

Question 3

The balance of trade is the

Accepted Answer

A) difference between the monetary value of a nation's exports and imports. 
B) sum of the monetary value of a nation's exports and imports. 
C) monetary value of a nation's exports divided by its imports. 
D) surplus that occurs when nations engage in exporting. 
E) state of equilibrium when two neighboring nations participate in countertrade.

Question 4

A situation where products are bought in a lower-priced country from a manufacturer's authorized reseller,shipped to higher-priced countries,and then sold through unauthorized retailers below the manufacturer's suggested retail price is referred to as

Accepted Answer

A) the black market. 
B) a gray market. 
C) dumping. 
D) a globalized market. 
E) parallel exporting.

Question 5

When a U.S.airplane manufacturer sells its airplanes to a company in Germany without using intermediaries,it is referred to as

Accepted Answer

A) direct exporting. 
B) indirect exporting. 
C) licensing. 
D) foreign manufacturing. 
E) foreign assembly.

Question 6

The Malaysian government exchanged 20,000 tons of rice for an equivalent amount of Philippine corn.This transaction is an example of a(n)

Accepted Answer

A) countertrade. 
B) competitive advantage. 
C) balance of trade. 
D) quota. 
E) trade feedback.

Question 7

A country's imports

Accepted Answer

A) stimulate the imports of other countries. 
B) have no effect on its exports. 
C) have no relationship with its balance of payments. 
D) affect its exports and exports affect its imports. 
E) over time will decrease its overall economic activity.

Question 8

Recently,the Japanese government,under pressure from its domestic farm lobby,slapped government taxes on mushrooms,leeks,and the reeds used in tatami mats that were being imported from China.These taxes Japan levied are referred to as

Accepted Answer

A) WTO taxes. 
B) quotas. 
C) tariffs. 
D) excise taxes. 
E) subsidies.

Question 9

The PRS Group maintains a website that can be used to determine

Accepted Answer

A) changing demographic and psychographic data for each country in the registry. 
B) a country's political risk ratings that are useful in comparing global marketing locations. 
C) the tariffs of each country and their relative effect on product and services sales. 
D) the rankings of American products relative to domestic equivalents in each country. 
E) changing social trends within different segments of the economy.

Question 10

Define a currency exchange rate and discuss its importance to global companies.

Accepted Answer

The answer of Define a currency exchange rate and discuss...

Question 11

Disney employed a(n)________ marketing strategy for its Disneyland Paris,particularly when it came to the eateries in the park.These restaurants featured recipes that were revised for local tastes,alcoholic beverages (not permitted in previous parks),and increased outdoor seating.

Accepted Answer

A) global 
B) transnational 
C) multidomestic 
D) meganational 
E) international

Question 12

The four largest importers of U.S.products and services are

Accepted Answer

A) Japan,Germany,China,and Canada. 
B) Canada,Mexico,China,and Japan. 
C) China,Brazil,Japan,and Germany. 
D) Mexico,Canada,Brazil,and China. 
E) England,Canada,Australia,and New Zealand.

Question 13

Explain the difference between joint venture and direct investment market entry strategies.What are the advantages and disadvantages of each approach?

Accepted Answer

The answer of Explain the difference between joint venture and...

Question 14

Yum! Brands,the parent company of KFC,has pursued an aggressive growth strategy in China.There are now more than 3,700 restaurants in 650 Chinese cities,and KFC has a 40 percent market share of the entire fast-food industry there.Yum! Brands China owns and directly manages about 90 percent of its Chinese stores,so it appears that the company prefers ________ in this market.

Accepted Answer

A) licensing 
B) local assembly 
C) a joint venture 
D) direct investment 
E) local manufacturing

Question 15

Figure 7-4
 
-A firm's profit potential and control over marketing activities ________ as it moves from exporting to direct investment as a global market entry strategy.

Accepted Answer

A) becomes more stable 
B) increase 
C) levels off 
D) decreases 
E) becomes more unpredictable

Question 16

Coca-Cola has operations in all but three nations in the world and Pepsi-Cola is now available in more than 160 countries and territories,making the soft drink industry an example of

Accepted Answer

A) global competition. 
B) acculturation. 
C) free trade. 
D) global branding. 
E) transactional exchange.

Question 17

Tiffany & Company knows that Japanese are superstitious about the number four.As a result,Tiffany sells its fine glassware and china in sets of five,not four,in Japan.Tiffany uses its knowledge of ________ to avoid connecting its products with the number four.

Accepted Answer

A) trademarks 
B) visual icons 
C) cultural symbols 
D) brand names 
E) ethnic emblems

Question 18

A trade war is initiated when

Accepted Answer

A) the World Trade Organization issues fines to two or more corporations in a country. 
B) two or more companies attempt to undercut one another's pricing strategy. 
C) a country begins to accept imports for a new product category or class. 
D) a country reduces tariffs for a particular product category or class. 
E) countries attempt to damage each other's trade with excessive tariffs and quotas.

Question 19

Why has Amazon been aggressively pursuing the Indian market since 2013?

Accepted Answer

A) U)S.sales have begun to decrease. 
B) Amazon believed it would be inexpensive to begin operations in India. 
C) There was no competition to speak of for Amazon's e-commerce channel in India. 
D) There were fewer restrictions in retailing in India. 
E) The India market offered significant growth potential.

Question 20

Describe the elements in a global channel of distribution.

Accepted Answer

The answer of Describe the elements in a global channel...

Exam 7: Understanding and Reaching Global Consumers and Markets