Question 1

Since 1963, Mary Kay, Inc.'s guiding principle has been based on __________.

Accepted Answer

A)  the Consumer Bill of Rights
B)  the Golden Rule
C)  caveat emptor
D)  the American Marketing Association Statement of Ethics
E)  maximizing profits so long as the firm stays within the rulesF) All of the above
G) A) and C)

Question 2

In terms of the global marketplace, there are three primary types of companies: international firms, multinational firms, and __________ firms.

Accepted Answer

A)  multiethnic
B)  transnational
C)  multidomestic
D)  ethnocentric
E)  meganationalF) D) and E)
G) A) and B)

Question 3

The price of one country's currency expressed in terms of another country's currency is referred to as the

Accepted Answer

A)  balance of price.
B)  currency exchange rate.
C)  money conversion factor.
D)  balance of payments.
E)  transfer payment.F) A) and C)
G) A) and D)

Question 4

Semiotics refers to

Accepted Answer

A)  a field of study in marketing linguistics that identifies the connotative meanings behind words in order to create the most effective product or brand names.
B)  a field of study in marketing linguistics that identifies the connotative meanings behind words in order to create the most effective advertising messages.
C)  a field of study that examines the correspondence between symbols and their role in the assignment of meaning for people.
D)  a field of linguistics that translates words into internationally recognized symbols to help companies carry their product message across international boundaries.
E)  the practice where a translated word or phrase is retranslated into the original language by a different interpreter to catch errors.F) A) and C)
G) B) and E)

Question 5

U.S. appliance manufacturers find that different customs about shopping must be used to determine local product design. For instance, people in Northern Europe shop only once a week, so they need bigger refrigerators than Southern Europeans, who shop daily. Furthermore, Northern Europeans insist that freezers should be on the top just as firmly as Southern Europeans want them on the bottom. Based on this, U.S. appliance manufacturers would be more likely successful if they used a(n)  __________ marketing strategy.

Accepted Answer

A)  global
B)  multidomestic
C)  transnational
D)  meganational
E)  internationalF) C) and E)
G) A) and E)

Question 6

A disadvantage of a joint venture arrangement when entering a new global market is that

Accepted Answer

A)  intermediaries have the potential to harm the brand.
B)  the firm entering the foreign market must pay royalties to the other firm.
C)  one of the companies forgoes control over its product.
D)  the two companies may disagree about policies.
E)  this method is likely to provide the fewest subsidies from the host country's government.F) C) and E)
G) A) and E)

Question 7

The World Trade Organization (WTO)  refers to

Accepted Answer

A)  the world's largest banking institution responsible for establishing and maintaining equitable exchange rates for all member nations.
B)  the world's largest licensing institution responsible for the certification of products distributed to a global market.
C)  an institution that sets rules governing trade between its members through panels of trade experts who decide on trade disputes between members and issue binding decisions.
D)  a multinational trade organization composed of the world's wealthiest nations whose primary purpose is to aid in the economic growth of developing nations.
E)  a multinational trade organization comprised of the world's wealthiest nations whose primary purpose is to promote free trade economies.F) B) and E)
G) A) and B)

Question 8

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 exportingF) A) and D)
G) A) and C)

Question 9

The clandestine collection of trade secrets or proprietary information about a company's competitors is referred to as

Accepted Answer

A)  trade piracy.
B)  transnational fraud.
C)  economic espionage.
D)  competitive duplicity.
E)  transnational espionageF) None of the above
G) A) and B)

Question 10

To eliminate the need to continually monitor currency exchange rates, 16 of the countries in the European Union (EU)  have adopted a common currency, which is called the __________.

Accepted Answer

A)  pound
B)  franc
C)  euro
D)  mark
E)  dollarF) B) and C)
G) C) and D)

Question 11

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

Accepted Answer

Indirect exporting is when a firm sells ...

Question 12

Pan-European marketing strategies are possible because

Accepted Answer

A)  there is a legally binding code of economic conduct.
B)  there are effective countermeasures for protectionism.
C)  there are fewer regulatory restrictions on transportation, advertising, and promotion.
D)  there is a common language advantage among EU consumers.
E)  most companies within the EU are engaging in strategic global partnerships.F) B) and C)
G) A) and B)

Question 13

Five trends in the past decade have significantly influenced the landscape of global marketing. One of them is

Accepted Answer

A)  the rise of economic integration and free trade among nations.
B)  an increase in economic protectionism and a decline in free trade.
C)  a more aggressive attitude towards initiating international tariffs and quota systems.
D)  a decrease in most countries' GDPs and a renewal of nationalism.
E)  an increase in most countries' GDPs coupled with an increased degree of consumer ethnocentrism.F) All of the above
G) A) and D)

Question 14

The Foreign Corrupt Practices Act

Accepted Answer

A)  makes it a crime for U.S. corporations to bribe an official of a foreign government or political party to obtain or retain business in a foreign country.
B)  has different levels of punishment based upon the wealth of the host nation.
C)  regulates only the behavior of U.S. businesses conducting business within the United States.
D)  makes the theft of trade secrets by foreign entities a federal crime in the United States.
E)  is a unilateral agreement the United States made with several developing nations.F) A) and C)
G) A) and E)

Question 15

Both Honda and Toyota have plants in the United States that use American labor. This illustrates Honda's and Toyota's use of

Accepted Answer

A)  direct exporting.
B)  direct investment.
C)  joint venture.
D)  licensing.
E)  indirect exporting.F) All of the above
G) A) and B)

Question 16

A thorough cross-cultural analysis involves an understanding of and an appreciation of all of the following EXCEPT:

Accepted Answer

A)  economics.
B)  symbols.
C)  values.
D)  languages.
E)  customs.F) A) and D)
G) A) and C)

Question 17

A(n)  __________ firm views the world as one market and emphasizes cultural similarities across countries or universal consumer needs and wants more than differences.

Accepted Answer

A)  transcontinental
B)  multidomestic
C)  international
D)  multinational
E)  transnationalF) B) and E)
G) B) and D)

Question 18

Which of the following statements about the World Trade Organization (WTO)  is most accurate?

Accepted Answer

A)  The World Trade Organization is a temporary institution.
B)  The 168 member countries of the WTO account for less than 25 percent of world trade.
C)  The WTO sets rules governing trade between its members and the rest of the world.
D)  The WTO uses panels of trade experts who can issue non-binding recommendations.
E)  The WTO was formed by the major industrialized nations of the world.F) B) and C)
G) B) and D)

Question 19

Protectionism refers to

Accepted Answer

A)  the practice of purchasing products exclusively from a domestic market in order to shore up a nation's economy.
B)  the use of tariffs, quotas, and boycotts with the express intention of putting foreign competitors out of business.
C)  the practice of shielding one or more sectors of a country's economy from foreign competition through the use of tariffs or quotas.
D)  a form of domestic imperialism that holds that only those products manufactured within one's home nation are of sufficient quality to warrant purchase.
E)  the practice of purchasing products exclusively from a foreign developing country in order to develop its industries and economic infrastructureF) A) and E)
G) B) and E)

Question 20

The law, amended by the International Anti-Dumping and Fair Competition Act, that makes it a crime for U.S. corporations to bribe an official of a foreign government or political party to obtain or retain business in a foreign country, is referred to as the

Accepted Answer

A)  International Law for Egalitarian Ethics Act.
B)  International Fair Practices Act.
C)  Law of International Equity Act.
D)  International Law of Ethical Business Practices Act.
E)  Foreign Corrupt Practices Act.F) A) and B)
G) C) and D)

Exam 6: Understanding and Reaching Global Consumers and Markets

The law, amended by the International Anti-Dumping and Fair Competition Act, that makes it a crime for U.S. corporations to bribe an official of a foreign government or political party to obtain or retain business in a foreign country, is referred to as the

Correct Answer
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The clandestine collection of trade secrets or proprietary information about a company's competitors is referred to as

Correct Answer
verified

Correct Answer
verified

A thorough cross-cultural analysis involves an understanding of and an appreciation of all of the following EXCEPT:

Correct Answer
verified

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

Correct Answer
verified
Indirect exporting is when a firm sells ...
View Answer

Since 1963, Mary Kay, Inc.'s guiding principle has been based on __________.

Correct Answer
verified

Pan-European marketing strategies are possible because

Correct Answer
verified

In terms of the global marketplace, there are three primary types of companies: international firms, multinational firms, and __________ firms.

Correct Answer
verified

The price of one country's currency expressed in terms of another country's currency is referred to as the

Correct Answer
verified

The Foreign Corrupt Practices Act

Correct Answer
verified

Five trends in the past decade have significantly influenced the landscape of global marketing. One of them is

Correct Answer
verified

Which of the following statements about the World Trade Organization (WTO) is most accurate?

Correct Answer
verified

The World Trade Organization (WTO) refers to

Correct Answer
verified

To eliminate the need to continually monitor currency exchange rates, 16 of the countries in the European Union (EU) have adopted a common currency, which is called the __________.

Correct Answer
verified

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 __________.

Correct Answer
verified

Semiotics refers to

Correct Answer
verified

Both Honda and Toyota have plants in the United States that use American labor. This illustrates Honda's and Toyota's use of

Correct Answer
verified

A disadvantage of a joint venture arrangement when entering a new global market is that

Correct Answer
verified

A(n) __________ firm views the world as one market and emphasizes cultural similarities across countries or universal consumer needs and wants more than differences.

Correct Answer
verified

Protectionism refers to

Correct Answer
verified

Exam 6: Understanding and Reaching Global Consumers and Markets

The law, amended by the International Anti-Dumping and Fair Competition Act, that makes it a crime for U.S. corporations to bribe an official of a foreign government or political party to obtain or retain business in a foreign country, is referred to as the

Correct AnswerverifiedShow Answer

The clandestine collection of trade secrets or proprietary information about a company's competitors is referred to as

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

A thorough cross-cultural analysis involves an understanding of and an appreciation of all of the following EXCEPT:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedIndirect exporting is when a firm sells ...View AnswerShow Answer

Since 1963, Mary Kay, Inc.'s guiding principle has been based on __________.

Correct AnswerverifiedShow Answer

Pan-European marketing strategies are possible because

Correct AnswerverifiedShow Answer

In terms of the global marketplace, there are three primary types of companies: international firms, multinational firms, and __________ firms.

Correct AnswerverifiedShow Answer

The price of one country's currency expressed in terms of another country's currency is referred to as the

Correct AnswerverifiedShow Answer

The Foreign Corrupt Practices Act

Correct AnswerverifiedShow Answer

Five trends in the past decade have significantly influenced the landscape of global marketing. One of them is

Correct AnswerverifiedShow Answer

Which of the following statements about the World Trade Organization (WTO) is most accurate?

Correct AnswerverifiedShow Answer

The World Trade Organization (WTO) refers to

Correct AnswerverifiedShow Answer

To eliminate the need to continually monitor currency exchange rates, 16 of the countries in the European Union (EU) have adopted a common currency, which is called the __________.

Correct AnswerverifiedShow Answer

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 __________.

Correct AnswerverifiedShow Answer

Semiotics refers to

Correct AnswerverifiedShow Answer

Both Honda and Toyota have plants in the United States that use American labor. This illustrates Honda's and Toyota's use of

Correct AnswerverifiedShow Answer

A disadvantage of a joint venture arrangement when entering a new global market is that

Correct AnswerverifiedShow Answer

A(n) __________ firm views the world as one market and emphasizes cultural similarities across countries or universal consumer needs and wants more than differences.

Correct AnswerverifiedShow Answer

Protectionism refers to

Correct AnswerverifiedShow Answer

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Indirect exporting is when a firm sells ...
View Answer

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