Question 1 1 out of 1 points

The process that involves the study of similarities and differences among consumers in two or more nations or societies is called:

Selected Answer: cross-cultural analysis.

Correct Answer: cross-cultural analysis.

Question 2

1 out of 1 points

The primary function of the General Agreement on Tariffs and Trade (GATT) has been to limit trade barriers and promote world trade through the:

Selected Answer: reduction of tariffs.

Correct Answer: reduction of tariffs.

Question 3

1 out of 1 points

Mattel successfully markets its best-selling Barbie®, Hot Wheels®, and Fisher-Price® brands in more than 150 countries. Today, Mattel markets as much as ______ percent of its product offerings to a global audience, with just ______ percent geared to individual country markets.

Selected Answer: 80, 20.

Correct Answer: 80, 20.

Question 4

1 out of 1 points

A country's communication, transportation, financial, and distribution systems are considered its:

Selected Answer: economic infrastructure.

Correct Answer: economic infrastructure.

Question 5

1 out of 1 points

The tendency to believe it is inappropriate, indeed immoral, to purchase a foreign-made product is called:

Selected Answer: consumer ethnocentrism.

Correct Answer: consumer ethnocentrism.

Question 6

1 out of 1 points

______ is the phenomenon in which a country's imports affect its exports and its exports affect its imports.

Selected Answer: Trade feedback effect

Correct Answer: Trade feedback effect

Question 7

1 out of 1 points

The Japanese manufacture tractors for rice paddies. They are smaller than most Canadian tractors and perfect for a weekend farmer who wants to tend to a small garden. The tractors are not sold in the Canadian through any authorized channels, yet they are available in Canada at prices below the manufacturer's suggested retail price. What is the term for how these tractors are being sold?

Selected Answer: on the gray market

Correct Answer: on the gray market

Question 8

1 out of 1 points

Nine out of every 10 diamonds sold in the world pass through India, making diamonds that country's largest export at $6.6 billion a year. One of the reasons for its success is the nation's 2,500 trading firms, its banks, airlines, customers' offices, and courier services that make sure the diamonds are safely delivered. Most of these are members of the diamond trading bourse in Bombay. According to Michael Porter's theory about national competitive advantage, India's success in the diamond industry is due in part to its:

Selected Answer: related and supporting industries.

Correct Answer: related and supporting industries.

Question 9

1 out of 1 points

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

Selected Answer: balance of trade.

Correct Answer: balance of trade.

Question 10

1 out of 1 points

A graphical representation of Michael Porter's elements which create a nation's competitive advantage looks like a:

Selected Answer: diamond.

Correct Answer: diamond.

Question 11

1 out of 1 points

Theodore Levitt wrote a book titled The Marketing Imagination. In the book, Levitt argues that consumers the world over are becoming very similar in their wants and behaviours. Levitt asserts marketers should standardize their marketing strategies and activities in order to benefit from economies of scale. Levitt is encouraging marketers to adopt a(n) _____ marketing strategy.

Selected Answer: global

Correct Answer: global

Question 12

1 out of 1 points

Direct eye contact is viewed positively in North and Latin America, but viewed negatively in Japan. This is an example of:

Selected Answer: customs.

Correct Answer: customs.

Question 13

1 out of 1 points

A country's economic infrastructure consists of all of the following EXCEPT:

Selected Answer: political system.

Correct Answer: political system.

Question 14

1 out of 1 points

A(n) _____ is the price of one country's currency expressed in terms of another country's currency.

Selected Answer: currency exchange rate

Correct Answer: currency exchange rate

Question 15

1 out of 1 points

When the Malaysian government exchanged 20,000 tons of rice for an equivalent amount of Philippine corn, this was an example of:

Selected Answer: a countertrade.

Correct Answer: a countertrade.

Question 16

1 out of 1 points

Thirteen to nineteen year olds in Europe, North and South America and the industrialized nations of Asia:

Selected Answer:

are more similar than different regarding their purchase behaviour.

Correct Answer:

are more similar than different regarding their purchase behaviour.

Question 17

1 out of 1 points

If you were responsible for marketing communications at a company that manufactures office supplies and had to provide product literature to be distributed in France, you would be wise to use ______, whereby you have someone to translate your literature from American English into French, and then have someone else in France translate the French into American English.

Selected Answer: back translation

Correct Answer: back translation

Question 18

1 out of 1 points

The _____ is an international treaty intended to limit trade barriers and promote world trade through the reduction of tariffs.

Selected Answer: General Agreement on Tariffs and Trade (GATT)

Correct Answer: General Agreement on Tariffs and Trade (GATT)

Question 19

1 out of 1 points

A joint venture in international marketing is:

Selected Answer:

when a foreign company and a local firm invest together to create a local business.

Correct Answer:

when a foreign company and a local firm invest together to create a local business.

Question 20

1 out of 1 points

McDonnell Douglas sold airplanes in Eastern Europe in exchange for canned hams and tools. This exchange was an example of:

Selected Answer: a countertrade.

Correct Answer: a countertrade.

Question 21

1 out of 1 points

Every country engages in some form of protectionism. However, protectionism has declined internationally over the past 50 years due in large part to the:

Selected Answer: General Agreement on Tariffs and Trade (GATT).

Correct Answer: General Agreement on Tariffs and Trade (GATT).

Question 22

1 out of 1 points

_____ in a country is directly affected by numerous factors including the government's orientation toward foreign companies and trade with other countries.

Selected Answer: Political stability

Correct Answer: Political stability

Question 23

1 out of 1 points

The trade feedback effect is one argument for:

Selected Answer: free trade agreements.

Correct Answer: free trade agreements.

Question 24

1 out of 1 points

Companies, which contract with a foreign firm to manufacture products according to stated specifications are using:

Selected Answer: contract manufacturing.

Correct Answer: contract manufacturing.

Question 25

1 out of 1 points

Four major trends affecting world trade in the early 21st century are a gradual decline in economic protectionism exercised by individual countries, global competition among global companies for global customers, the emergence of networked global marketspace, and:

Selected Answer: formal integration and free trade among nations.

Correct Answer: formal integration and free trade among nations.

Sumer 2009

Question 1 0 out of 1 points

Which of the following is a disadvantage associated with licensing?

Selected Answer: creates its own competition

Correct Answer:

lower wages and prices

Feedback: Lower wages and prices are not a disadvantage to licensing arrangements with foreign firms. Licensing decreases profit potential and gives the company no control over its product, which is why a poor choice in licensee can create a poor image for product.

Question 2

1 out of 1 points

Canada's ______, is valued at almost $1 trillion, which is the monetary value of all goods and services produced in a country during one year.

Selected Answer: gross domestic product (GDP)

Correct Answer:

gross domestic product (GDP)

Feedback: Key term definition - gross domestic product

Question 3

1 out of 1 points

The importation of cheap, short-barreled guns into the United States is prohibited, but the sale of those guns is legal. As a result Beretta, the Italian gun manufacturer and a maker of cheap, short-barreled guns, opened its own manufacturing plant in Maryland. Beretta engaged in:

Selected Answer: direct

investment.

Correct Answer:

direct investment.

Feedback: Beretta invested in and owns a foreign manufacturing plant.

Question 4

1 out of 1 points

KFC in Japan sells tempura crispy strips. In northern England, it stresses gravy and potatoes, while in Thailand it offers fresh rice. In Holland, instead of potatoes, KFC offers customers a potato and onion croquette. In France, KFC sells pastries alongside its chicken. KFC exhibits an understanding of and appreciation for the _____ of other societies.

Selected Answer: customs

Correct Answer:

customs

Feedback: KFC serves food that suits the tastes of its target markets in each of the countries listed.

Question 5

1 out of 1 points

The Japanese manufacture tractors for rice paddies. They are smaller than most Canadian tractors and perfect for a weekend farmer who wants to tend to a small garden. The tractors are not sold in the Canadian through any authorized channels, yet they are available in Canada at prices below the manufacturer's suggested retail price. What is the term for how these tractors are being sold?

Selected Answer: on the gray

market

Correct Answer:

on the gray market

Feedback: Gray marketing is a situation where products are bought in a lower-priced country from a manufacturer's authorized reseller, shipped to higher-priced countries, and sold through unauthorized channels of distribution below the manufacturer's suggested retail price.

Question 6

0 out of 1 points

Fran Wilson Creative Cosmetics sells its Moodmatcher lipstick through Japanese distributors that reach Japan's beauty salons. This is an example of:

Selected Answer: direct exporting.

Correct Answer:

indirect exporting.

Feedback: In international marketing the product strategy of selling virtually the same product in other countries is called product extension strategy.

Question 7

1 out of 1 points

Three types of companies populate and compete in the global marketplace: international firms, multinational firms, and _____ firms.

Selected Answer:

transnational

Correct Answer:

transnational

Feedback: An international firm engages in trade as an extension of the marketing strategy in its home country, a multinational firm markets to each part of the world differently, and a transnational firm emphasizes similarities across countries.

Question 8

1 out of 1 points

To become leaders in the world market, countries need related and supporting industries because:

Selected Answer: clusters of strong suppliers can accelerate innovation.

Correct Answer:

clusters of strong suppliers can accelerate innovation.

Feedback: Firms and industries seeking leadership in global markets need clusters of world-class suppliers that accelerate innovation.

Question 9

1 out of 1 points

A firm that views the world as consisting of unique parts and markets to each part differently is called a(n):

Selected Answer: multinational

firm.

Correct Answer:

multinational firm.

Feedback: Text term definition - multinational firm

Question 10

1 out of 1 points

If you were responsible for marketing communications at a company that manufactures office supplies and had to provide product literature to be distributed in France, you would be wise to use ______, whereby you have someone to translate your literature from American English into French, and then have someone else in France translate the French into American English.

Selected Answer: back translation

Correct Answer:

back translation

Feedback: Key term definition - back translation

Question 11

1 out of 1 points

Although there are many factors contributing to the success of major global marketers, a common theme seems to be that they:

Selected Answer: first succeeded in intense domestic competition.

Correct Answer:

first succeeded in intense domestic competition.

Feedback: While the strategies employed by the most successful global competitors have been different in many respects, a common theme has emerged - a firm that succeeds in global markets has first succeeded in intense domestic competition.

Question 12

0 out of 1 points

Which of the following is an element of company strategy, structure, and rivalry?

Selected Answer: intensity of competition

Correct Answer:

all of these answers are correct

Feedback: See Figure 7-2.

Question 13

1 out of 1 points

The U.S. motorcycle manufacturer Harley-Davidson uses intermediaries to sell its motorcycles in numerous nations outside the U.S. Harley-Davidson uses:

Selected Answer: indirect exporting.

Correct Answer:

indirect exporting.

Feedback: Indirect exporting occurs when a firm sells its domestically produced goods in a foreign country through an intermediary.

Question 14

1 out of 1 points

Two variations on licensing are:

Selected Answer: contract manufacturing and contract assembly.

Correct Answer:

contract manufacturing and contract assembly.

Feedback: Two variations on licensing, local manufacturing and local assembly represent alternative ways to produce a product within the foreign country.

Question 15

1 out of 1 points

In international marketing, a restriction placed on the amount of a product allowed to enter or leave a country is called a:

Selected Answer: quota.

Correct Answer:

quota.

Feedback: Key term definition - quota

Question 16

1 out of 1 points

Mattel successfully markets its best-selling Barbie®, Hot Wheels®, and Fisher-Price® brands in more than 150 countries. Mattel sells one Barbie every _________ somewhere in the world.

Selected Answer: 3 seconds

Correct Answer:

3 seconds

Feedback: Mattel sells one Barbie every 3 seconds somewhere in the world.

Question 17

1 out of 1 points

Which of the following issues raises a question about the ethics of protectionism?

Selected Answer: Regional trade agreements provide preferential treatment for

member nations.

Correct Answer: Regional trade agreements provide preferential treatment for

member nations.

Feedback: Protectionism, in its many forms, raises an interesting global ethical question: is protectionism, no matter how applied, an ethical practice? Of the statements above, the possibility of preferential treatment is most likely to suggest an ethical consideration.

Question 18

1 out of 1 points

Companies that use a(n) ______ marketing strategy have as many different product variations, brand names, and advertising programs as countries in which they do business.

Selected Answer: multidomestic

Correct Answer:

multidomestic

Feedback: Key term definition - multidomestic marketing strategy

Question 19

1 out of 1 points

Even though there are hundreds of different languages and dialects, the three major languages used in global diplomacy and commerce are:

Selected Answer: English, French, and Spanish.

Correct Answer:

English, French, and Spanish.

Feedback: English, French, and Spanish are the principal languages used in global diplomacy and commerce. However, the best language to communicate with consumers is their own.

Question 20

1 out of 1 points

Michael Porter has identified four key elements in a nation's competitive advantage. They are factor conditions; demand conditions; company strategy, structure, and rivalry; and:

Selected Answer: related and supporting industries.

Correct Answer:

related and supporting industries.

Feedback: Harvard Business School Professor Michael Porter suggests a “diamond” of four elements (factor conditions, related industries, demand conditions, and company strategy) to explain a nation's competitive advantage.

Question 21

1 out of 1 points

Theodore Levitt wrote a book titled The Marketing Imagination. In the book, Levitt argues that consumers the world over are becoming very similar in their wants and behaviours. Levitt asserts marketers should standardize their marketing strategies and activities in order to benefit from economies of scale. Levitt is encouraging marketers to adopt a(n) _____ marketing strategy.

Selected Answer:

global

Correct Answer:

global

Feedback: Levitt encourages marketers to standardize their marketing activities in order maximize efficiency - in other words, to adopt a global marketing strategy.

Question 22

1 out of 1 points

A nation's ability to turn its natural resources, education, and infrastructure into a competitive advantage is reflected in:

Selected Answer: factor conditions.

Correct Answer:

factor conditions.

Feedback: Text term definition - factor conditions

Question 23

1 out of 1 points

KFC in Japan altered the sweetness of its coleslaw to appeal to Japanese tastes. This is an example of which type of international product strategy?

Selected Answer: product

adaptation

Correct Answer:

product adaptation

Feedback: Changing a product in some way to make it more appropriate for a country's climate or preferences is an example of adaptation.

Question 24

1 out of 1 points

The three largest importers of Canadian goods and services are:

Selected Answer: The United States, Japan, and the European Union.

Correct Answer:

The United States, Japan, and the European Union.

Feedback: These countries are the largest importers of Canadian goods.

Question 25

1 out of 1 points

Which of the following statements about Michael Porter's theory about national competitive advantage is true?

Selected Answer: All of these statements about Michael Porter's theory about

national competitive advantage are true.

Correct Answer: All of these statements about Michael Porter's theory about

national competitive advantage are true.

Feedback: All of the statements about Porter's theory are true and discussed in the section, “Competitive Advantage of Nations.”