Question 1

A situation in which 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.F) B) and C)
G) C) and D)

Question 2

Describe the World Trade Organization (WTO) and its purpose.

Accepted Answer

The World Trade Organization (WTO) was f...

Question 3

A global market entry strategy in which a company produces goods in one country and sells them in another country is referred to as

Accepted Answer

A)   exporting.
B)   direct investment.
C)   countertrade.
D)   licensing.
E)   multinational marketing.F) All of the above
G) B) and C)

Question 4

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

Accepted Answer

People who favor protectionism believe t...

Question 5

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

Accepted Answer

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

Question 6

What is considered normal and expected about the way people do things in a specific country is referred to as

Accepted Answer

A)   morals.
B)   ethics.
C)   values.
D)   customs.
E)   beliefs.F) B) and C)
G) All of the above

Question 7

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

Accepted Answer

A)   an increase in most countries' GDP coupled with an increased degree of consumer ethnocentrism.
B)   a significant increase in economic protectionism and a decline in tariffs and quotas.
C)   a more aggressive attitude toward regulating international banking.
D)   a decrease in most countries' GDP and a renewal of nationalism.
E)   a growth in economic integration among countries.F) None of the above
G) A) and E)

Question 8

Which of the following examples best demonstrates a company's appreciation for another country's values?

Accepted Answer

A)   A German company allows customers to make large purchases using layaway (paying small amounts until the item is paid for and delivered) .
B)   In Brazil, an appliance maintenance firm schedules service appointments allowing only 15 minutes of leeway for missed calls or no shows.
C)   In Japan, a spa owner created special exercise classes for husbands and wives.
D)   In India, a popular hamburger chain separated its dining area by color for people who wanted to eat beef and those who did not.
E)   In predominantly Muslim countries, a clothing company eliminated outdoor advertising placements showing scantily clad models.F) A) and B)
G) D) and E)

Question 9

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

Accepted Answer

A)   As the largest international importer and exporter, the United States accounts for 65 percent of world trade.
B)   World trade is calculated to include only the exchange of money for products or services.
C)   An estimated 35 percent of world trade involves countertrade.
D)   China, the United States, and Germany far outpace other countries in terms of imports and exports.
E)   Because of NAFTA, North American intratrade is no longer counted in calculations of world trade.F) B) and D)
G) A) and B)

Question 10

A gray market is

Accepted Answer

A)   the segment of products specifically designed for the need of older buyers.
B)   a once active and powerful market that is rapidly becoming the bottom of the barrel.
C)   a situation where products are sold through unauthorized channels of distribution.
D)   a pricing structure that is based upon haggling that is considered acceptable in some countries but not others.
E)   the willingness of one party to accept gifts in exchange for better prices or price allowances.F) A) and D)
G) B) and D)

Question 11

Direct exporting 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)   a foreign country and a local firm investing together to create a local business.
D)   using additional parties when a firm sells its domestically produced goods in another country.
E)   a firm selling its domestically produced goods in a foreign country without intermediaries.F) D) and E)
G) C) and E)

Question 12

Consumer ethnocentrism refers to

Accepted Answer

A)   the belief that all products that are foreign made are cheap and of poor quality.
B)   the belief that one should only purchase made by indigenous people in developing countries.
C)   the belief that all corporations are corrupt and consumers must look out for themselves.
D)   the tendency to believe that the only products that are of true quality are those that are manufactured in one's own country.
E)   the tendency to believe it is inappropriate, even immoral, to purchase foreign-made products.F) B) and C)
G) A) and E)

Question 13

Trade among nations or regions depends on political stability. In recent times, billions of dollars have been lost in ________ and ________ as a result of internal political strife, terrorism, and war.

Accepted Answer

A)   Russia; Poland
B)   France; Spain
C)   China; Japan
D)   the Middle East; Africa
E)   Germany; the United KingdomF) B) and D)
G) A) and D)

Question 14

Almost all countries have some division of social class (upper, middle, and lower) . The determining factor for the assignment to one of these classes may differ from country to country. For example, in the United States, the primary determining factor is occupation; in India, it is birthright; in China, it is geographical region and education; and in Singapore, it is income. These differences are best explained in terms of a country's

Accepted Answer

A)   semiotics.
B)   legal system.
C)   ethnocentricity.
D)   religion.
E)   values.F) C) and D)
G) None of the above

Question 15

Figure 6-4
-According to Figure 6-4, point C would most likely represent what option for entering the global marketplace?

Accepted Answer

A)   exporting
B)   joint venture
C)   direct investment
D)   licensing
E)   franchisingF) C) and E)
G) B) and E)

Question 16

A multidomestic marketing strategy refers to

Accepted Answer

A)   the strategy of transnational firms that employ the practice of standardizing marketing activities when there are cultural similarities and adapting them when cultures differ.
B)   the strategy used by firms that use the same product variations, brand names, and advertising programs for every country in which they do business.
C)   the strategy used by firms that have as many different product variations, brand names, and advertising programs as countries in which they do business.
D)   the strategy of seeking out already established firms in other nations and selling them the rights to manufacture and distribute the firm's products.
E)   the strategy currently used by most U.S. domestic firms that when entering a new international market, these firms offer only those products that require the least amount of product adaptation.F) A) and B)
G) B) and D)

Question 17

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

Accepted Answer

A country's imports affect its exports a...

Question 18

In recent decades, a number of countries with similar economic goals have formed transnational trade groups or signed trade agreements for the purpose of promoting free trade. Describe the two discussed in the textbook.

Accepted Answer

(1) In 2015 the European Union (EU) cons...

Question 19

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

Question 20

A firm that views the world as consisting of unique parts and markets to each part differently is referred to as

Accepted Answer

A)   a supernational firm.
B)   an extranational firm.
C)   an international firm.
D)   a multinational firm.
E)   a transnational firm.F) B) and D)
G) B) and E)

Exam 6: Understanding and Reaching Global Consumers and Markets

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

Correct Answer
verified
People who favor protectionism believe t...
View Answer

Consumer ethnocentrism refers to

Correct Answer
verified

A firm that views the world as consisting of unique parts and markets to each part differently is referred to as

Correct Answer
verified

In recent decades, a number of countries with similar economic goals have formed transnational trade groups or signed trade agreements for the purpose of promoting free trade. Describe the two discussed in the textbook.

Correct Answer
verified
(1) In 2015 the European Union (EU) cons...
View Answer

Correct Answer
verified

A gray market is

Correct Answer
verified

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

Correct Answer
verified

Describe the World Trade Organization (WTO) and its purpose.

Correct Answer
verified
The World Trade Organization (WTO) was f...
View Answer

What is considered normal and expected about the way people do things in a specific country is referred to as

Correct Answer
verified

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

Correct Answer
verified

Trade among nations or regions depends on political stability. In recent times, billions of dollars have been lost in and as a result of internal political strife, terrorism, and war.

Correct Answer
verified

A situation in which 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

Which of the following examples best demonstrates a company's appreciation for another country's values?

Correct Answer
verified

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

Correct Answer
verified
A country's imports affect its exports a...
View Answer

A global market entry strategy in which a company produces goods in one country and sells them in another country is referred to as

Correct Answer
verified

Direct exporting refers to

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

Figure 6-4 -According to Figure 6-4, point C would most likely represent what option for entering the global marketplace?

Correct Answer
verified

A multidomestic marketing strategy refers to

Correct Answer
verified

Exam 6: Understanding and Reaching Global Consumers and Markets

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

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

Consumer ethnocentrism refers to

Correct AnswerverifiedShow Answer

A firm that views the world as consisting of unique parts and markets to each part differently is referred to as

Correct AnswerverifiedShow Answer

In recent decades, a number of countries with similar economic goals have formed transnational trade groups or signed trade agreements for the purpose of promoting free trade. Describe the two discussed in the textbook.

Correct Answerverified(1) In 2015 the European Union (EU) cons...View AnswerShow Answer

Correct AnswerverifiedShow Answer

A gray market is

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Describe the World Trade Organization (WTO) and its purpose.

Correct AnswerverifiedThe World Trade Organization (WTO) was f...View AnswerShow Answer

What is considered normal and expected about the way people do things in a specific country is referred to as

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Trade among nations or regions depends on political stability. In recent times, billions of dollars have been lost in ________ and ________ as a result of internal political strife, terrorism, and war.

Correct AnswerverifiedShow Answer

A situation in which 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

Which of the following examples best demonstrates a company's appreciation for another country's values?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedA country's imports affect its exports a...View AnswerShow Answer

A global market entry strategy in which a company produces goods in one country and sells them in another country is referred to as

Correct AnswerverifiedShow Answer

Direct exporting refers to

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Figure 6-4 -According to Figure 6-4, point C would most likely represent what option for entering the global marketplace?

Correct AnswerverifiedShow Answer

A multidomestic marketing strategy refers to

Correct AnswerverifiedShow Answer

Correct Answer
verified
People who favor protectionism believe t...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
(1) In 2015 the European Union (EU) cons...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The World Trade Organization (WTO) was f...
View Answer

Correct Answer
verified

Correct Answer
verified

Trade among nations or regions depends on political stability. In recent times, billions of dollars have been lost in and as a result of internal political strife, terrorism, and war.

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
A country's imports affect its exports a...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified