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Q:
Who offers low-interest loans to developing nations?
a. World Bank
b. International Monetary Fund
c. Federal Reserve
d. International Reserve
e. United Nations
Q:
Which of the following statements about the European Union (EU) is true?
a. The EU creates a single Europroduct for a generic Euroconsumer.
b. The EU removes all internal trade barriers and standardizes regulations in European countries for easier trade.
c. The EU can correctly be called the "United States of Europe" because all European voters have agreed to these changes.
d. The existence of the EU eliminates protectionist movements by United Europe against the Japanese and the United States.
e. The European Union is the largest economy in the world.
Q:
The goal of the Central America Free Trade Agreement (CAFTA) is to:
a. create free-trade agreements between the United States and other industrialized nations
b. eliminate all protectionism
c. raise prosperity levels in all industrializing nations
d. establish a free trade agreement between the United States and certain Latin American countries
e. make sure all nations achieve the economic and technological development of a takeover economy or better
Q:
All of the following are countries included in the Central America Free Trade Agreement (CAFTA) EXCEPT:
a. United States
b. Nicaragua
c. El Salvador
d. Guatemala
e. Mexico
Q:
The North American Free Trade Agreement (NAFTA) did all of the following EXCEPT:
a. created the world's largest free-trade zone including Canada, the United States, and Mexico
b. substantially reduced economic growth in Mexico
c. allowed U.S. and Canadian financial-services companies to own subsidiaries in Mexico
d. removed many tariffs and duties so that Mexico, Canada, and the United States can trade more freely
e. expanded opportunities for U.S. businesses in Mexico
Q:
Which of the following is the latest round of World Trade Organization (WTO)?
a. Mercosur covenant
b. CAFTA Alliance
c. Doha Round
d. Uruguay Round
e. WTO Round
Q:
The _____ of trade negotiations created the _____, which replaces GATT. This trade agreement dramatically lowers trade barriers worldwide.
a. Uruguay Round; World Trade Organization
b. Doha Round; European Union
c. Doha Round; NAFTA
d. Paraguay Round; South American Free Trade Agreement
e. Mercosur; European Union
Q:
The _____ is the most ambitious global trade agreement ever negotiated; the agreement has reduced tariffs by one-third worldwide.
a. Uruguay Round
b. Mercosur
c. GATT
d. NAFTA
e. Maastricht Treaty
Q:
With respect to global business, MFN stands for:
a. multi-functional norm
b. multinational foreign network
c. main foreign network
d. most favored nation
e. multi-foreign nation
Q:
Negotiations (such as GATT or the Uruguay Round) between countries that are made to stimulate global exchange and remove barriers are called _____ agreements.
a. trade
b. joint venture
c. CRM
d. exchange
e. licensing
Q:
_____ is a trade agreement that includes Argentina, Bolivia, Brazil, Chile, Columbia, Ecuador, Paraguay, Peru, and Uruguay. This agreement eliminated the tariffs among these trading partners.
a. NAFTA
b. Maastricht
c. WTO
d. GATT
e. Mercosur
Q:
_____ are trade alliances in which several countries agree to work together to form a common trade area that enhances trade opportunities among those countries.
a. Boycotts
b. Regional unifications
c. Market groupings
d. Free trade nations
e. Expropriation members
Q:
A(n) _____ is a law that compels a company earning foreign currency from its exports to sell it to a central bank rather than sending the money out of the country.
a. tariff
b. quota
c. fiscal prerequisite
d. exchange control
e. transfer barrier
Q:
In 1764, the British Sugar and Currency Acts created such economic difficulty in the American colonies that soon-to-be Americans refused to buy British goods in protest. This refusal marked one of the first examples of the use of the:
a. transfer limit
b. quota
c. tariff
d. exchange control
e. boycott
Q:
An exclusion of all products from certain countries or companies by a government or group is called a(n):
a. expropriation
b. quota
c. tariff
d. exchange control
e. boycott
Q:
Since 1953, the United States has limited the amount of raw peanuts that can be imported to 1.7 million pounds a year. This is only about one-tenth of 1 percent of all domestic edible peanut consumption in the United States. This limitation is an example of a(n):
a. natural resource barrier
b. quota
c. tariff
d. exchange control
e. boycott
Q:
A(n) _____ is a limit on the amount of a specific product that can enter a country.
a. quota
b. tariff
c. boycott
d. exchange control
e. transfer limit
Q:
Consumers purchasing an automobile in Hong Kong must pay a 100% tax on it. This tax is imposed by the government on all automobiles entering the country and is called a(n):
a. tariff
b. quota
c. license
d. boycott
e. exchange control
Q:
A tax levied on the goods entering a country is called a(n):
a. license
b. quota
c. boycott
d. exchange control
e. tariff
Q:
When a company or industry is taken over by the government, it has been:
a. unionized
b. boycotted
c. exchanged
d. patronized
e. nationalized
Q:
Which of the following statements about the political environment is true?
a. A recession is part of the political environment.
b. A country is either socialistic or capitalistic, but never both.
c. The countries with the least across-the-board regulations and political structures foster the strongest economies.
d. The European Union is purely an economic arrangement and has no political impact on marketing.
e. All of these statements about the political environment are true.
Q:
The fact that Russia's inflation rate has increased 15.1% since May of 2007 would be an important _____ factor for a company that wanted to do business in that country.
a. legal
b. economic
c. culture
d. technological
e. natural
Q:
Who are the richest people in the world?
a. Americans
b. Chinese
c. British
d. French
e. Luxembourgers
Q:
A U.S. executive had no idea the Japanese go through a very elaborate ritual when exchanging business cards. When he arrived at a meeting in Tokyo, he sat down and tossed some of his business cards across the table at a group of stunned Japanese businesspeople. Due to the U.S. executive's rudeness, the multimillion dollar deal failed. The U.S. executive overlooked the importance of which environmental factor?
a. culture
b. demographics
c. natural resources
d. economic development
e. political structure
Q:
When IKEA, the Swedish home furnishings retailer, first entered the Japanese market, it failed. It was more successful in its second try because it was aware of the need to adapt its furnishings to fit the smaller Japanese homes. The _____ environment had the greatest influence on IKEA's first failure in Japan.
a. demographic
b. economic
c. cultural
d. political
e. technological
Q:
In China, August 15 is "the Chinese Saint Valentine's Day" in memory of two ancient lovers who were separated by a goddess and only allowed to meet once a year on that date. Flower and candy sales typically increase that day as they do on February 14 in the United States. This would be an important part of the international _____ environment for a flower wholesaler or a confectionery company.
a. cultural
b. legal
c. economic
d. technological
e. natural
Q:
Which of the following is an important cultural factor that should be considered by global marketers?
a. competitive synergy
b. language
c. natural resources
d. technology sensitivity
e. level of economic development
Q:
Muslim countries are receptive to most Disney products, but they have asked Disney not to include Piglet when it sells its Winnie the Pooh characters because Muslims (as a part of their religious beliefs) contend that pork in any form is unclean. This is an example of a _____ factor that directly affects Disney's global operation.
a. political structure
b. cultural
c. technological
d. competitive
e. natural resource
Q:
A soft drink manufacturer who was thinking of investing in a bottling plant in the Czech Republic should know the nation is proud of the fact it is among the world's biggest beer drinkers. Czechs consume an average of one-half liter of beer a day for every man, woman, and child in the country. The _____ environment of this country could very easily prevent the soft drink bottling company from succeeding.
a. demographic
b. economic
c. cultural
d. political
e. technological
Q:
Central to any society is a common set of values shared by its citizens that determines what is socially acceptable. Marketers refer to these values collectively as a country's:
a. ethical system
b. culture
c. ethnocentrism
d. national personality
e. socialization
Q:
A business thinking of expanding into global markets needs to examine all of the following external environments EXCEPT:
a. culture
b. political structure and actions
c. its marketing mix
d. natural resources
e. demographic makeup
Q:
Cardiac Science, a U.S. manufacturer of defibrillators, heart monitoring devices, and other medical related devices, sells 85 percent of its products outside the United States. It sells basically the same product to a hospital in London, Tokyo, Pretoria, or Sydney. It uses the same promotional tactics in all of its markets. Cardiac Science:
a. is not concerned about media and messages used for international promotional efforts
b. uses global marketing standardization
c. assumes cultural uniformity and lifestyle differences occur across cultural settings
d. desires technological receptivity from country to country
e. assumes language acceptance in each country
Q:
The Victorinox Swiss Army Knife is found all over the world. It is manufactured and marketed similarly to all consumers. Victorinox uses a(n) _____.
a. ethnocentric strategy
b. global marketing standardization approach
c. synergistic approach to globalization
d. cultural marketing strategy
e. traditional approach to marketing
Q:
Global marketing standardization:
a. is becoming less popular with the large multinationals
b. encourages product, packaging, and advertising variations for each nation or local market
c. actually raises production costs
d. presumes markets throughout the world are becoming more alike
e. is more popular with consumer products than with industrial goods
Q:
With a _____, a firm produces standardized products to be sold the same way all over the world.
a. traditional marketing strategy
b. global marketing standardization approach
c. product extension approach
d. culturally based marketing strategy
e. synergistic approach to marketing
Q:
A company that is capital-intensive:
a. has an altered fiscal strategy for overseas operations
b. spends more on equipment than on labor
c. makes better use of benchmarking than other types of business
d. creates employment monopolies
e. must engage in countertrading due to restrictive foreign legislature
Q:
Which of the following is a criticism of multinational corporations?
a. multinationals sometimes support reactionary and oppressive regimes
b. multinationals require excessive employment information
c. countertrading
d. the transference of labor-intensive technology
e. multinationals do not do enough to standardize their marketing mixes
Q:
Cooley Manufacturing is a multinational company selling plumbing components around the world. This company has progressed to the point that it operates an entire of line of business in several other countries. Which stage of multinational business does this represent?
a. Stage one
b. Stage two
c. Stage three
d. Stage four
e. Stage five
Q:
In which stage do multicultural companies operate when they set up foreign subsidiaries to handle sales in one country?a. Stage oneb. Stage twoc. Stage threed. Stage foure. Stage five
Q:
Defeet International creates its apparel in North Carolina and sells it domestically and abroad. The company is in which stage of global business?a. Stage oneb. Stage twoc. Stage threed. Stage foure. Stage five
Q:
Claiborne Inc. produces leather accessories for motorcycle riders and is in stage one of creating their global business. This means that they:
a. operate in one country and sell to others
b. have set up a foreign subsidiary
c. operate an entire line of business in another country
d. have top executives and core corporate functions in different countries
e. they operate in every country in the world
Q:
Otis Elevators has entered into a strategic alliance with a company in France from which it gets its elevator door systems. It has a similar agreement with a manufacturer in Japan that provides it with special motor drives. A manufacturer in Spain has worked closely with Otis to create small geared parts necessary for the manufacture of elevators. The component parts are assembled at its plant in the United States. Otis elevators can be found in buildings all over the world. Otis Elevators is an example of a(n):
a. cultural marketer
b. global trader
c. multinational corporation
d. exporting company
e. global enterprise
Q:
Apple Inc. has partnerships with wireless carriers in Japan, Spain and a handful of other European countries. Apple Inc works with suppliers and retailers worldwide. This means that Apple is a _____.
a. multinational corporation
b. worldwide competitor
c. marketplace competitor
d. domestic corporation
e. foreign investor
Q:
When European demand for a certain solvent declined, Dow Chemical instructed its German plant to switch to manufacturing a chemical that had been imported from Louisiana and Texas. Dow Chemical would be best described as a(n):
a. global enterprise
b. global trader
c. cultural marketer
d. exporting company
e. multinational corporation
Q:
Which of the following statements about multinational firms is true?
a. Multinationals typically do not change their methods of reaching their global markets if they are successful with their initial strategy.
b. Multinationals are defined as companies heavily engaged in exporting and importing.
c. All multinationals must enter the fourth stage of globalization before they are fully internationalized.
d. Multinationals often develop their global businesses in stages.
e. The five stages of globalization closely mirror the five stages of the product life cycle.
Q:
A(n) _____ is a company that is heavily engaged in global trade and moves its resources, goods, services, and skills across national boundaries.
a. international facilitator
b. global trader
c. multinational corporation
d. exporting company
e. international merchant
Q:
Many people fear world trade because it:
a. will inevitably lead to inflation
b. will cause living standards to increase at a slower rate
c. causes some people to lose their jobs as production shifts abroad
d. has brought entire nations out of poverty
e. has increased per capita income for some countries
Q:
Forty million jobs may be shipped out of the country in the next decade or two according to Alan Blinder, former Federal Reserve Chairman. The key factor in this phenomenon is _____.
a. cultural changes
b. the adoption of English worldwide
c. communications technology
d. competition
e. more global flights
Q:
The primary reason large U.S. companies send U.S. jobs abroad is because labor costs are higher here in the United States. They are engaging in _____.
a. outsourcing
b. global trade
c. multinational employee searches
d. employee export
e. global employment
Q:
All of the following statements about global marketing are true EXCEPT:
a. Marketing to target markets throughout the world has become an imperative for business.
b. Often a U.S. firm's toughest domestic competition comes from foreign companies.
c. Marketing managers must develop a global vision not only to recognize and react to international marketing opportunities but also to remain competitive at home.
d. Adopting a global vision can be lucrative for a company, and global marketing can offset weak domestic performance.
e. Foreign competitors have not gained significant market share in the U.S.
Q:
Gillette gets about two-thirds of its revenue from its international divisions. This shows that:
a. U.S. citizens are shaving less
b. their market share should increase
c. more men and women need to shave
d. sales need to be increased domestically
e. adopting a global vision can pay off
Q:
Sawyer Components manufactures high-cost, customized roller parts for paper mills and is expanding into China because of the opportunity for significant growth in this developing country. The owner uses effective global strategies and is aware of threats from foreign competitors. This illustrates that the owner has a global:
a. advantage
b. imperative
c. vision
d. outsource
e. introspection
Q:
Basketball is played nearly everywhere in the world and is an easily understood sport. The National Basketball Association (NBA) finals reached more than 600 million televisions in 195 countries. From this information, you should be able to infer that the NBA is:a. developing international selling schemesb. implementing standard international marketingc. implementing global marketing standardizationd. supplementing its foreign visione. practicing global marketing
Q:
Individuals and organizations utilizing a global vision to effectively market goods and services across the world are engaged in:
a. international selling schemes
b. borderless commerce
c. global marketing standardization
d. global logistics
e. global marketing
Q:
The rules, regulations, and habits used for bricks-and-mortar stores tend to restrain and limit the success of those retailers engaged in e-commerce.
Q:
If a country's currency appreciates, more of that currency will be needed to buy another country's currency.
Q:
Global marketing research is not any more difficult than domestic marketing research.
Q:
The form of global organization that provides the highest potential for return on investment as well as the highest level of risk is contract manufacturing.
Q:
U.S.-based Procter & Gamble and Italian-based Fater agreed to produce and market diapers for the European market. This is an example of a joint franchise.
Q:
The major disadvantage of licensing agreements is that international companies cannot maintain control over their licensees.
Q:
Licensing agreements reduce the risk for manufacturers and sometimes even remove the requirement for a manufacturer to produce its own product.
Q:
Even though it is not actively involved in global marketing, Hennessey Enterprises, a U.S.-based business, agreed to sell two thousand of its stress-reducing products to a distribution company in Norway. This would be an example of direct investment.
Q:
Vast differences in natural resources created international dependence and huge shifts of wealth.
Q:
GATT, NAFTA, and the EU are all examples of market groupings.
Q:
NAFTA is the New American Foreign Trade Amendment, which allows for balanced trade with the European Union (EU).
Q:
The Uruguay Round of trade negotiations dramatically increased trade barriers worldwide.
Q:
To protect its local vodka industry, Russia allows foreign manufacturers to have only one percent of the Russian vodka market. This is an example of using tariffs to control foreign competition.
Q:
The U.S. government prohibits the importation of Havana cigars because of political differences with Cuba. This is an example of an import exchange control.
Q:
The U.S. government limits the amount of sugar cane that is imported into the country. This is an example of a quota.
Q:
According to research done by the World Bank, countries with the greatest amount of business regulation foster the strongest economies.
Q:
While some countries have elements of both capitalism and socialism, most nations are at one political extreme or the other.
Q:
Even if all parties to a global business transaction are fluent in a common language, other cultural factors could interfere with the communication process.
Q:
The same environmental factors that operate in the domestic market also exist internationally. These factors (culture, economic development, political and legal structure, demographics, and natural resources) should be examined regardless of the country.
Q:
Global marketing standardization assumes markets throughout the world are becoming more alike.
Q:
Multinational companies typically begin the development of their global business with direct investment and continue using this strategy throughout the company's life span.
Q:
The falling U.S. dollar makes the possibility of manufacturing in the United States more attractive than in the past.
Q:
About 85 percent of U.S. companies export their products to other countries on a regular basis.
Q:
Global trade has reached about $11 trillion a year.
Q:
Having a global vision means management recognizes and reacts to international marketing opportunities, is aware of threats from foreign competitors in all markets.
Q:
The main product for Zamperla Industries is gondola cars for amusement park rides and ski lifts. Its marketing department constantly monitors trends in the external environment that might affect the firm. Which economic factor may pose a major threat to this company?
a. few competitors in this industry
b. technological improvements that are automating production of cars
c. a recession
d. increasing interest in the environment and recycling
e. existing legislation requiring licensing of all amusement park rides