Question 1

According to Michael Porter's diamond of national competitive advantage,both the number and sophistication of domestic customers for an industry's product are examples of

Accepted Answer

A)  structural conditions.
B)  demand conditions.
C)  socio-cultural conditions.
D)  competitive conditions.
E)  factor conditions.F) A) and D)
G) B) and C)

Question 2

According to Figure 7-5 above,point "D" would most likely represent what option for entering the global marketplace?

Accepted Answer

A)  exporting
B)  joint venture
C)  direct investment
D)  franchising
E)  licensingF) B) and D)
G) D) and E)

Question 3

Which of the following statements regarding global brands is most accurate?

Accepted Answer

A)  A global brand has dispersed marketing centers,each of which is responsible for a specific region.
B)  A global brand is marketed under the same name in multiple countries.
C)  A global brand alters the brand name for each dialect in a geographical region.
D)  A global brand delivers multiple benefits to the GDP of each country.
E)  A global brand is a collaborative effort among several different transnational firms.F) A) and E)
G) C) and D)

Question 4

Global companies have five strategies for matching products and their promotion efforts to global markets.According to Figure 7-6 above,"B" 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) C) and E)
G) A) and E)

Question 5

Competitive advantage for global firms grows out of continuous improvement,__________,and change.

Accepted Answer

A)  product quality
B)  employment of a multicultural or multinational staff
C)  membership in a formalized trade organization
D)  market research
E)  innovationF) A) and B)
G) C) and E)

Question 6

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,Europe,and China.
E)  England,Canada,Australia,and New Zealand.F) D) and E)
G) A) and D)

Question 7

Which of the following statements about bribery is most accurate?

Accepted Answer

A)  Bribes,kickbacks,and payoffs offered to entice someone to commit an illegal or improper act are deemed corrupt in some cultures but not in others.
B)  The world's major exporting nations have agreed to treat bribery of foreign government officials as a violation of trade agreements.
C)  Bribes paid to foreign companies is in some cases a tax-deductible expense in the U.S.
D)  It is a crime for U.S.corporations to bribe an official of a foreign government or political party unless pre-approved by the Federal Trade Commission.
E)  It is illegal for a U.S.corporation to bribe an official of a foreign government or political party to obtain or retain business in a foreign country.F) B) and E)
G) A) and B)

Question 8

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 D)
G) A) and E) C

Question 9

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 D)
G) A) and E)

Question 10

Why is it a wise idea for global marketers use back translation? Provide an example to support your answer.

Accepted Answer

Back translation is where a translated w...

Question 11

What global market-entry strategy did Mary Kay use when it entered India?

Accepted Answer

A)  direct importing
B)  licensing
C)  indirect exporting
D)  joint venture
E)  direct exportingF) B) and C)
G) B) and E) E

Question 12

Contract manufacturing 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 stated specifications.
C)  contracting between a foreign country and a local firm to invest together to create a local business.
D)  having a company handle its own exports directly,without intermediaries.
E)  exporting through an intermediary,which has the knowledge and the means to succeed in selling a firm's product abroad.F) All of the above
G) B) and C)

Question 13

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.F) None of the above
G) C) and E)

Question 14

Countries moving from an agricultural to an industrial economy are referred to as __________ countries.

Accepted Answer

A)  primitive
B)  emerging
C)  agrarian
D)  developing
E)  evolvingF) B) and C)
G) A) and E)

Question 15

Someone who wanted to study the fact that in some nations,black is a sign of mourning while in other nations,white is a sign of mourning would be studying

Accepted Answer

A)  semiotics.
B)  semantics.
C)  semaphorics.
D)  cultural symbolism.
E)  cultural linguistics.F) A) and D)
G) A) and C)

Question 16

The prescribed penalty for individuals found guilty of the theft of trade secrets is

Accepted Answer

A)  up to 25 years in prison and fines up to $10 million.
B)  life in prison with chance of parole after 25 years.
C)  expulsion from the United States and/or revocation of citizenship.
D)  30 years in prison and fines to be determined by the courts.
E)  up to 15 years in prison and fines up to $500,000.F) A) and B)
G) B) and E)

Question 17

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 D)
G) C) and D)

Question 18

One disadvantage 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 must pay royalties to the government.
C)  the company forgoes control over its product.
D)  the financial commitments involved.
E)  this method is likely to provide the fewest cost savings relative to the other global market-entry options.F) A) and B)
G) B) and D)

Question 19

Once a company has decided to enter the global marketplace,it must select a means of market entry.Four general options exist: (1) __________; (2) licensing; (3) joint venture;and (4) direct investment.

Accepted Answer

A)  exporting
B)  accreditation
C)  countertrading
D)  cooperative
E)  franchisingF) B) and E)
G) A) and D)

Question 20

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) B) and C)
G) B) and D) D

Exam 7: Understanding and Reaching Global Consumers and Markets

According to Michael Porter's diamond of national competitive advantage,both the number and sophistication of domestic customers for an industry's product are examples of

Correct AnswerverifiedShow Answer

According to Figure 7-5 above,point "D" would most likely represent what option for entering the global marketplace?

Correct AnswerverifiedShow Answer

Which of the following statements regarding global brands is most accurate?

Correct AnswerverifiedShow Answer

Global companies have five strategies for matching products and their promotion efforts to global markets.According to Figure 7-6 above,"B" refers to which type of strategy?

Correct AnswerverifiedShow Answer

Competitive advantage for global firms grows out of continuous improvement,__________,and change.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following statements about bribery is most accurate?

Correct AnswerverifiedShow Answer

Pan-European marketing strategies are possible because:

Correct AnswerverifiedC

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

Correct AnswerverifiedShow Answer

Why is it a wise idea for global marketers use back translation? Provide an example to support your answer.

Correct AnswerverifiedBack translation is where a translated w...View AnswerShow Answer

What global market-entry strategy did Mary Kay use when it entered India?

Correct AnswerverifiedE

Contract manufacturing refers to

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Countries moving from an agricultural to an industrial economy are referred to as __________ countries.

Correct AnswerverifiedShow Answer

Someone who wanted to study the fact that in some nations,black is a sign of mourning while in other nations,white is a sign of mourning would be studying

Correct AnswerverifiedShow Answer

The prescribed penalty for individuals found guilty of the theft of trade secrets is

Correct AnswerverifiedShow Answer

A currency exchange rate refers to

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Once a company has decided to enter the global marketplace,it must select a means of market entry.Four general options exist: (1) __________; (2) licensing; (3) joint venture;and (4) direct investment.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedD

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