Question 1

As a firm changes its global market-entry strategy from exporting to direct investment, all of the following increase EXCEPT:

Accepted Answer

A)  marketing control.
B)  risk.
C)  divestiture.
D)  profit potential.
E)  financial commitment.F) B) and D)
G) B) and E)

Question 2

Global consumers refer to

Accepted Answer

A)  all potential consumers for any and all products or services regardless of cultural, ethnic, or national origins.
B)  customers within a nation who consider the entire world a single marketplace.
C)  consumer groups living in many countries or regions of the world who have similar needs or seek similar features and benefits from products or services.
D)  consumer groups living in many countries or regions of the world that have similar needs but seek customized features and benefits from products or services that reflect their individual cultures.
E)  multinational organizations whose products incorporate raw materials, assembly, and distribution contributions from multiple nations before they are marketed.F) None of the above
G) A) and B)

Question 3

Based on a study of 6,500 teens in 26 countries, when asked what country had the most influence on their attitudes and purchase behavior, 54 percent of teens from the United States, 87 percent of those from Latin America, 80 percent of the Europeans, and 80 percent of those from Asia named

Accepted Answer

A)  the United States.
B)  Japan.
C)  the United Kingdom.
D)  France.
E)  China.F) B) and C)
G) B) and E)

Question 4

One variation of licensing is referred to as

Accepted Answer

A)  direct investment.
B)  joint ventures.
C)  direct exporting.
D)  franchising.
E)  dual adaptation.F) D) and E)
G) All of the above

Question 5

A global brand refers to

Accepted Answer

A)  two or more domestic products that coincidentally share the same brand name but represent two completely unrelated products.
B)  two or more international products that coincidentally share the same brand name but represent two completely unrelated products.
C)  a brand marketed under the same name in multiple countries with similar and centrally coordinated marketing programs.
D)  a brand that is essentially the same but that has had minor adaptations made to meet the more specific needs of different nations.
E)  a brand marketed under different names in multiple countries with similar and centrally coordinated marketing programs.F) A) and B)
G) A) and C)

Question 6

-Global companies have five strategies for matching products and their promotion efforts to global markets. According to Figure 6-4 above, A 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 strategyF) None of the above
G) A) and B)

Question 7

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 unstableF) B) and E)
G) A) and B)

Question 8

Three types of companies populate and compete in the global marketplace. Identify and describe each type.

Accepted Answer

All three types of global companies empl...

Question 9

Eastman Kodak accused Japanese rival Fuji Photo Film of selling photographic paper in the United States for 25 percent below what it charges in Japan. In other words, Eastman Kodak accused Fuji of __________.

Accepted Answer

A)  tariff avoidance
B)  countertrade
C)  surplus marketing
D)  dumping
E)  underbiddingF) None of the above
G) A) and D)

Question 10

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.F) A) and B)
G) C) and D)

Question 11

In international trade, dumping refers to

Accepted Answer

A)  illegally disposing of unusable or damaged goods to avoid paying removal fees and/or taxes.
B)  a firm selling damaged or unsalable goods below their original production cost.
C)  a firm selling quality goods at significantly lower prices for the primary purpose of reducing inventory to make room for seasonal goods.
D)  a firm selling quality goods at significantly lower prices for the primary purpose of reducing inventory to make room for newer or more expensive models.
E)  a firm selling a product in a foreign country below its domestic price or below its actual cost.F) A) and E)
G) A) and D)

Question 12

A currency exchange rate refers to

Accepted Answer

A)  the unit equivalency of all international currency.
B)  the ratio of a nation's basic unit of currency relative to the price of silver.
C)  the ratio of a nation's basic unit of currency relative to the price of gold.
D)  the price of one country's currency expressed in terms of another country's currency.
E)  the unit of wealth (gold, oil, diamonds, etc.)  upon which a nation bases its national currency.F) B) and C)
G) A) and D)

Question 13

CAFTA-DR, 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)  MexicoF) A) and D)
G) None of the above

Question 14

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

Accepted Answer

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

Question 15

Personally or socially preferable modes of conduct or states of existence that tend to persist over time are referred to as __________.

Accepted Answer

A)  customs
B)  ethics
C)  values
D)  culture
E)  beliefsF) B) and C)
G) A) and E)

Question 16

The appreciation of fashion, music, and a desire for novelty and trendier designs and images

Accepted Answer

A)  are preferences found more in American teenagers than in most other cultures around the world.
B)  actually begin at age 10, but begin to decline significantly as students enter high school.
C)  ironically are found more for teenagers who cannot afford to make those purchases than for those who can.
D)  are preferences of teenagers around the world regardless of whether they live.
E)  are often established early among European teens and they typically linger well into adulthood.F) A) and E)
G) C) and E)

Question 17

Around the world, middle-class, youth, and elite markets that consume similar assortments of products and services, regardless of geographic location, are referred to as

Accepted Answer

A)  transnational consumers.
B)  meganational consumers.
C)  international consumers.
D)  multinational consumers.
E)  global consumers.F) C) and E)
G) D) and E)

Question 18

Give at least one argument for and one argument against protectionism.

Accepted Answer

People who favor protectionism believe t...

Question 19

The study of similarities and differences among consumers in two or more nations or societies is referred to as __________.

Accepted Answer

A)  market synthesis
B)  cross-cultural analysis
C)  international sociographics
D)  transnational anthropology
E)  multicultural ethnocentrismF) All of the above
G) C) and E)

Question 20

One advantage of direct investment 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 does not have to pay royalties to the government.
C)  the company forgoes control over its product.
D)  the firm gains and uses a better understanding of local market conditions.
E)  this method is likely to provide the fewest subsidies from the host country's government.F) B) and D)
G) B) and C)

Exam 6: Understanding and Reaching Global Consumers and Markets

In international trade, dumping refers to

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Around the world, middle-class, youth, and elite markets that consume similar assortments of products and services, regardless of geographic location, are referred to as

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A currency exchange rate refers to

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As a firm changes its global market-entry strategy from exporting to direct investment, all of the following increase EXCEPT:

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One advantage of direct investment when entering a new global market is that

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Personally or socially preferable modes of conduct or states of existence that tend to persist over time are referred to as __________.

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

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A global brand refers to

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Eastman Kodak accused Japanese rival Fuji Photo Film of selling photographic paper in the United States for 25 percent below what it charges in Japan. In other words, Eastman Kodak accused Fuji of __________.

Correct AnswerverifiedShow Answer

Give at least one argument for and one argument against protectionism.

Correct AnswerverifiedPeople who favor protectionism believe t...View AnswerShow Answer

Based on a study of 6,500 teens in 26 countries, when asked what country had the most influence on their attitudes and purchase behavior, 54 percent of teens from the United States, 87 percent of those from Latin America, 80 percent of the Europeans, and 80 percent of those from Asia named

Correct AnswerverifiedShow Answer

The study of similarities and differences among consumers in two or more nations or societies is referred to as __________.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

One variation of licensing is referred to as

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Three types of companies populate and compete in the global marketplace. Identify and describe each type.

Correct AnswerverifiedAll three types of global companies empl...View AnswerShow Answer

Global consumers refer to

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

-Global companies have five strategies for matching products and their promotion efforts to global markets. According to Figure 6-4 above, A refers to which type of strategy?

Correct AnswerverifiedShow Answer

The appreciation of fashion, music, and a desire for novelty and trendier designs and images

Correct AnswerverifiedShow Answer

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People who favor protectionism believe t...
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All three types of global companies empl...
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