Question 1

One of the factors in the external environment that has become more evident in the past decade is the:
A)decrease in the importance of language in foreign trade.
B)shortage of natural resources.
C)abundance of export brokers for major industries.
D)decrease in the working-age population of developing countries.

Accepted Answer

The past decade has shown an increased awareness of the scarcity of natural resources such as fossil fuels, clean water, and certain minerals. This has led to a greater emphasis on sustainability and conservation efforts in both the private and public sectors.

Question 2

Aztic Inc. ,a manufacturer of sports goods,plans to expand its operations to a new country.As part of this expansion,it determines whether the population of the country is primarily rural or urban.In this case,Aztic Inc.is assessing the__________of the country.

Accepted Answer

The answer of Aztic Inc. ,a manufacturer of sports goods,plans...

Question 3

Once marketing managers have determined a global product and promotion strategy,they can select the remainder of the marketing mix.However,entry into many developing nations presents special pricing problems because:
A)the rate of capital accumulation exceeds the rate of population growth.
B)there is always an expectation of countertrade by developing countries.
C)the demand for low quality products is very less compared to developed countries.
D)there is a lack of mass purchasing power.

Accepted Answer

Developing nations often have a lack of mass purchasing power due to lower levels of income and higher levels of poverty. This can make it difficult for companies to price their products competitively while still making a profit. Additionally, there may be local competition that is able to offer lower prices due to lower operating costs. Therefore, pricing strategies must be carefully considered when entering developing markets. Countertrade (B) may be a consideration, but it is not always an expectation in developing nations. The demand for low quality products (C) may also exist in some developing nations, but it is not the primary pricing problem. Capital accumulation (A) is not directly related to pricing strategies.

Question 4

The__________is a trade agreement that has dramatically lowered trade barriers worldwide and also created the World Trade Organization.

Accepted Answer

The answer of The__________is a trade agreement that has dramatically...

Question 5

Melrow Inc. ,a U.S.firm,suffers heavy losses and lays off many of its employees.As a measure to reduce its manufacturing costs,it shifts its production units to another country where inexpensive labor is available.In this scenario,Melrow Inc.is engaged in__________.

Accepted Answer

The answer of Melrow Inc. ,a U.S.firm,suffers heavy losses and...

Question 6

Which of the following is true of franchising?
A)It is a form of contract manufacturing.
B)It has grown rapidly in recent years.
C)It is restricted to the market of fast-food restaurants.
D)It requires an export agent and an export broker to be successful.

Accepted Answer

Franchising has grown rapidly in recent years and is no longer restricted to just fast-food restaurants. It is a form of licensing where a franchisor grants a franchisee the right to use its trademark, products, and services for a fee. Franchisees benefit from an established business model and brand recognition, while franchisors benefit from expansion of their brand without having to invest in all the costs and risks associated with opening new locations themselves. Contract manufacturing (A) refers to outsourcing production to a third-party manufacturer, not franchising. Export agents and brokers (D) are not necessary for a successful franchise operation.

Question 7

Maria likes visiting different restaurants and trying out a variety of cuisines.She writes her experiences on a Web page,titled Maria's Experiences,which can be read by people all around the world.She also reviews restaurants,and members of her Web page are entitled to post their comments and suggestions.Based on this information,Maria's Experiences is an example of a(n)__________.

Accepted Answer

The answer of Maria likes visiting different restaurants and trying...

Question 8

Irving Inc. ,an apparel company,decides to expand operations to several countries around the world.However,it fails to take into account the various styles of clothing that are deemed acceptable in these countries.It sells the same clothes that it sells in its home country to the other countries.As a result,it suffers a major loss.In this scenario,Irving Inc.failed to be sensitive to the__________of the countries.

Accepted Answer

The answer of Irving Inc. ,an apparel company,decides to expand...

Question 9

D'Costas,an authentic Mexican restaurant,has many restaurants all over the world.The taste and authenticity of the food served is the same irrespective of the restaurant one visits.Based on this information,D'Costas follows the strategy of__________.

Accepted Answer

The answer of D'Costas,an authentic Mexican restaurant,has many restaurants all...

Question 10

Many people fear world trade because it:
A)closes the access to advanced technology for less developed countries.
B)slows down the rate at which people's living standards increase.
C)causes some people to lose their jobs due to production shifts abroad.
D)empowers governments to abuse the freedom and property of their citizens.

Accepted Answer

World trade can sometimes cause production shifts from developed countries to less developed countries where labor is cheaper, leading to job losses in the developed countries. This is a common fear among people who oppose world trade. However, overall trade can also bring benefits such as lower prices, increased competition, and higher economic growth, which can eventually lead to higher living standards for individuals. The other choices do not accurately describe the fears associated with world trade.

Question 11

A(n)__________is an intermediary who brings a buyer and a seller together.

Accepted Answer

The answer of A(n)__________is an intermediary who brings a buyer...

Question 12

Which of the following is a similarity between export brokers and export agents?
A)Both act as hired purchasing agents for foreign customers operating in the exporter's home market.
B)Both live in foreign countries and assist in international trade.
C)Both assume all risks associated with selling a manufacturer's product in the international market.
D)Both allow manufacturers to retain title for products.

Accepted Answer

Both export brokers and export agents allow manufacturers to retain title for their products. While export brokers act as intermediaries between the manufacturer and the foreign customer, export agents work on behalf of the manufacturer to find foreign customers. However, neither of them assumes all the risks associated with selling the product in the international market.

Question 13

In the context of global marketing,when a domestic firm buys part of a foreign company or joins with a foreign company to create a new entity,it is known as a__________.

Accepted Answer

The answer of In the context of global marketing,when a...

Question 14

Which of the following is true of globalization?
A)It expands economic freedom and increases the living standards of people.
B)It relies on strong government regulations to keep down prices.
C)It fails to offer access to advanced technology in less developed countries.
D)It makes it easier for governments to abuse the freedom and property of their citizens.

Accepted Answer

Globalization allows for greater access to international markets, which can lead to increased economic growth and higher living standards for people. This is often achieved through the reduction of trade barriers and the promotion of free trade.

Option B is incorrect as globalization often promotes market competition, which may result in lower prices, but not necessarily through government regulation.

Option C is incorrect as globalization enables countries to access technology and knowledge from other countries, which can help to reduce technological disparities.

Option D is incorrect as globalization can promote greater transparency and accountability, which can help to curb government abuses of power.

Question 15

A(n)__________is a limit on the amount of a specific product that can enter a country.

Accepted Answer

The answer of A(n)__________is a limit on the amount of...

Question 16

A company is said to be a direct foreign investor in another country if it:
A)outsources a part of its production to the country due to the availability of cheaper labor.
B)exports finished products to that country.
C)manufactures products for that country based on contract manufacturing.
D)acquires an active ownership of marketing facilities in that country.

Accepted Answer

Direct foreign investment occurs when a company establishes an active ownership presence in a foreign country, such as through a subsidiary or joint venture. Option A refers to outsourcing, not direct investment. Option B refers to exporting, not direct investment. Option C refers to contract manufacturing, which may or may not involve direct foreign investment depending on the ownership structure of the manufacturing facility.

Question 17

__________is a fast-growing way to conduct global business in which all or part of the payment for goods or services is in the form of other goods and services.

Accepted Answer

The answer of __________is a fast-growing way to conduct global...

Question 18

__________is the largest Latin American trade agreement and includes Argentina,Bolivia,Brazil,Chile,Colombia,Ecuador,Paraguay,Peru,Uruguay,and Venezuela.

Accepted Answer

The answer of __________is the largest Latin American trade agreement...

Question 19

The primary reason large U.S.companies send U.S.jobs abroad is because labor costs are higher in the United States.Such companies are said to be engaging in__________.

Accepted Answer

The answer of The primary reason large U.S.companies send U.S.jobs...

Question 20

A company is most likely doomed to failure in a foreign country if it__________.

Accepted Answer

The answer of A company is most likely doomed to...

Quiz 5: Developing a Global Vision

One of the factors in the external environment that has become more evident in the past decade is the:

Aztic Inc. ,a manufacturer of sports goods,plans to expand its operations to a new country.As part of this expansion,it determines whether the population of the country is primarily rural or urban.In this case,Aztic Inc.is assessing the__________of the country.

Once marketing managers have determined a global product and promotion strategy,they can select the remainder of the marketing mix.However,entry into many developing nations presents special pricing problems because:

The__________is a trade agreement that has dramatically lowered trade barriers worldwide and also created the World Trade Organization.

Melrow Inc. ,a U.S.firm,suffers heavy losses and lays off many of its employees.As a measure to reduce its manufacturing costs,it shifts its production units to another country where inexpensive labor is available.In this scenario,Melrow Inc.is engaged in__________.

Which of the following is true of franchising?

D'Costas,an authentic Mexican restaurant,has many restaurants all over the world.The taste and authenticity of the food served is the same irrespective of the restaurant one visits.Based on this information,D'Costas follows the strategy of__________.

Many people fear world trade because it: