Question 1

Which of the following statements about world trade flows is most accurate?

Accepted Answer

A)  China is the world leader in terms of GDP (gross domestic product) .
B)  The relative position of the United States as a supplier to the world has increased because of an absolute growth in exports.
C)  The relative position of the U.S.as a supplier to the world has diminished despite an absolute growth in exports.
D)  The United States' relative role as an exporter has decreased in the area of aerospace during the past five years.
E)  It is impossible to compare GDPs of different nations since it is an internal measurement of economic activity.F) A) and D)
G) C) and E)

Question 2

A global market-entry strategy that entails a domestic firm actually investing in and owning a foreign subsidiary or division is referred to as

Accepted Answer

A)  licensing.
B)  local assembly.
C)  a joint venture.
D)  direct investment.
E)  local manufacturing.F) A) and E)
G) A) and D)

Question 3

Changing a product in some way to make it more appropriate for a country's climate or preferences is an example of which type of global marketing product/promotion strategy?

Accepted Answer

A)  product extension
B)  product customization
C)  product invention
D)  product integration
E)  product adaptationF) B) and D)
G) A) and D)

Question 4

Foreign countries with very low per capita incomes may still be attractive markets for some goods.To get a more reliable picture of a country's purchasing power,a country's __________ must also be considered.

Accepted Answer

A)  total income
B)  total area
C)  geographical location
D)  culture
E)  income distributionF) A) and B)
G) A) and C)

Question 5

Economic infrastructure refers to

Accepted Answer

A)  a nation's military-industrial complex.
B)  a country's governmental services.
C)  the people and the wealth of a nation.
D)  a country's communications,transportation,financial,and distribution systems.
E)  all of a country's natural resources,whether or not they are currently being exploited.F) A) and D)
G) A) and E)

Question 6

Fran Wilson Creative Cosmetics attributes its success to a top-quality product,effective advertising,and a novel __________ marketing program.

Accepted Answer

A)  joint venture
B)  licensing
C)  franchising
D)  indirect export
E)  direct investmentF) A) and E)
G) A) and D)

Question 7

All of the following are disadvantages of licensing EXCEPT:

Accepted Answer

A)  the licensor reduces it potential profits gained from it.
B)  the foreign country gains employment by having the product manufactured locally.
C)  the licensor forgoes control of its product.
D)  should the licensee prove to be a poor choice,the name or reputation of the company may be harmed.
E)  the licensor may be creating its own competition.F) B) and C)
G) B) and D)

Question 8

Licensing refers to

Accepted Answer

A)  offering the right to a trademark,patent,trade secret,or similarly valued items of intellectual property in return for a royalty or fee.
B)  contracting with a foreign firm to manufacture products according to certain specifications.
C)  when a foreign country and a local firm invest together to create a local business.
D)  having a company handle its own exports directly without intermediaries.
E)  exporting through an intermediary,which often has the knowledge and means to succeed in selling a firm's product abroad.F) All of the above
G) A) and C)

Question 9

Most companies become involved in direct exporting when

Accepted Answer

A)  foreign governments believe that they will benefit the most from allowing the entry of direct exports.
B)  emerging markets in foreign countries become economically viable.
C)  they believe their volume of sales will be sufficiently large and easy to obtain so that they do not require intermediaries.
D)  the domestic market becomes saturated with competing products and services.
E)  evolving technologies in foreign countries come online.F) A) and E)
G) A) and B)

Question 10

Which of the following is an example of a demand condition?

Accepted Answer

A)  available natural resources
B)  existence of supplier clusters
C)  sophistication of consumers
D)  intensity of competition
E)  competitive wage ratesF) All of the above
G) A) and B)

Question 11

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) B) and C)
G) A) and E)

Question 12

Figure 7-7 above outlines the distribution channels through which a product manufactured in one country must travel to reach its destination in another country.Which letter in the figure ("A," "B," "C," "D," or "E") would identify intermediaries used to move the product from one country to another?

Accepted Answer

A)  "A"
B)  "B"
C)  "C"
D)  "D"
E)  "E"F) A) and C)
G) A) and B)

Question 13

Offering the right to a trademark,patent,trade secret,or similarly valued items of intellectual property in return for a royalty or fee is referred to as

Accepted Answer

A)  direct exporting.
B)  indirect exporting.
C)  licensing.
D)  contract manufacturing.
E)  outside branding.F) A) and B)
G) A) and C)

Question 14

When a nation's imports exceed its exports,it incurs a __________ in its balance of trade.

Accepted Answer

A)  countertrade
B)  trade feedback effect
C)  deficit
D)  surplus
E)  tariffF) C) and D)
G) C) and E)

Question 15

Around the world,middle-class,youth,and elite markets 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 D)
G) B) and C)

Question 16

Daimler AG agreed to sell 30 trucks to Romania and accept in exchange 150 Romanian-made Jeeps,which it sold in Ecuador in exchange for bananas,which it brought back to Germany and sold to a German supermarket chain in exchange for cash.This complex transaction is an example of (a)

Accepted Answer

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

Question 17

Which of the following statements about world trade flows is most accurate?

Accepted Answer

A)  The EU (European Union) is the world leader in terms of GDP (gross domestic product) .
B)  The relative position of the United States as a supplier to the world has increased despite an absolute growth in exports.
C)  The U.S.role as a marketplace for the world has increased,especially for automobiles,oil,textiles,and consumer electronics.
D)  The United States' relative role as an exporter has decreased in the area of aerospace during the past five years.
E)  The United States' relative role as an exporter changed dramatically when it became a service-oriented economy.F) None of the above
G) A) and E)

Question 18

When a firm sells a product in a foreign country below its domestic price or below its actual cost,it is referred to as

Accepted Answer

A)  loss-leader pricing.
B)  surplus marketing.
C)  dumping.
D)  second-market pricing.
E)  entrepreneurial pricing.F) A) and D)
G) B) and E)

Question 19

The difference between the monetary value of a nation's exports and imports is called its

Accepted Answer

A)  countertrade.
B)  trade feedback effect.
C)  balance of trade.
D)  gross domestic product.
E)  tariffs.F) None of the above
G) A) and D)

Question 20

Not so many years ago,many U.S.consumers thought Americans who purchased Japanese-made radios,televisions,and other electronic equipment were not only behaving inappropriately but also immorally.U.S.consumers who thought buying Japanese products was wrong were exhibiting

Accepted Answer

A)  back translation.
B)  consumer ethnocentrism.
C)  the trade feedback effect.
D)  consumer bias.
E)  cultural ethnocentricity.F) A) and B)
G) C) and E)

Exam 7: Understanding and Reaching Global Consumers and Markets

Foreign countries with very low per capita incomes may still be attractive markets for some goods.To get a more reliable picture of a country's purchasing power,a country's __________ must also be considered.

Correct AnswerverifiedShow Answer

When a nation's imports exceed its exports,it incurs a __________ in its balance of trade.

Correct AnswerverifiedShow Answer

Which of the following statements about world trade flows is most accurate?

Correct AnswerverifiedShow Answer

Economic infrastructure refers to

Correct AnswerverifiedShow Answer

Which of the following statements about world trade flows is most accurate?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Figure 7-7 above outlines the distribution channels through which a product manufactured in one country must travel to reach its destination in another country.Which letter in the figure ("A," "B," "C," "D," or "E") would identify intermediaries used to move the product from one country to another?

Correct AnswerverifiedShow Answer

Which of the following is an example of a demand condition?

Correct AnswerverifiedShow Answer

Offering the right to a trademark,patent,trade secret,or similarly valued items of intellectual property in return for a royalty or fee is referred to as

Correct AnswerverifiedShow Answer

Licensing refers to

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Fran Wilson Creative Cosmetics attributes its success to a top-quality product,effective advertising,and a novel __________ marketing program.

Correct AnswerverifiedShow Answer

Daimler AG agreed to sell 30 trucks to Romania and accept in exchange 150 Romanian-made Jeeps,which it sold in Ecuador in exchange for bananas,which it brought back to Germany and sold to a German supermarket chain in exchange for cash.This complex transaction is an example of (a)

Correct AnswerverifiedShow Answer

A global market-entry strategy that entails a domestic firm actually investing in and owning a foreign subsidiary or division is referred to as

Correct AnswerverifiedShow Answer

All of the following are disadvantages of licensing EXCEPT:

Correct AnswerverifiedShow Answer

When a firm sells a product in a foreign country below its domestic price or below its actual cost,it is referred to as

Correct AnswerverifiedShow Answer

Changing a product in some way to make it more appropriate for a country's climate or preferences is an example of which type of global marketing product/promotion strategy?

Correct AnswerverifiedShow Answer

Not so many years ago,many U.S.consumers thought Americans who purchased Japanese-made radios,televisions,and other electronic equipment were not only behaving inappropriately but also immorally.U.S.consumers who thought buying Japanese products was wrong were exhibiting

Correct AnswerverifiedShow Answer

The difference between the monetary value of a nation's exports and imports is called its

Correct AnswerverifiedShow Answer

Most companies become involved in direct exporting when

Correct AnswerverifiedShow Answer

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