Deck 1: Globalization Imperative

Question 1

____________________ consists of exports and imports between a country and the rest of the world.

A) Regional reach
B) Competition
C) International trade
D) International business
E) Regional investment

Answer 1

C

Question 2

In the consumption process, people around the world with per capita income of $20,000 and above have a pretty good _________________:

A) physical power.
B) political power.
C) purchasing power.
D) consumption power.
E) psychological power.

Answer 2

C

Question 3

According to the textbook, the process of globalization does not suffocate _________________, but rather liberates them from the ideological conformity of nationalism.

A) glocal cultures
B) regional cultures
C) Asian cultures
D) dynamic cultures
E) local cultures

Answer 3

E

Question 4

Marketing includes the entire company's:

A) quality orientation.
B) market orientation.
C) cost orientation.
D) production orientation.
E) demand orientation.

Question 5

In global business, products have been traded across borders throughout recorded civilizations, extending back beyond the ________________ that once connected East with West.

A) The Marco Polo Road
B) The Roman Road
C) The Pioneer Road
D) The International Road
E) The Silk Road

Question 6

Toyota's new strategy is to de-Japanize its business and make the ________ market its major corporate priority.

A) U.S.
B) Germany
C) England
D) Indonesia
E) none of the above

Question 7

B2B stands for:

A) bubble-to-business
B) business-to-business
C) buyer-to-business
D) best-to-business
E) Best Buy-to-business

Question 8

_____________________ consists of exports and imports between a country and the rest of the world and foreign production.

A) Regional reach
B) Competition
C) International trade
D) International business
E) Regional investment

Question 9

When a country's per capita income is below $10,000, consumers spend most of their income on:

A) food and other necessities.
B) higher education.
C) electronic appliances.
D) buying houses.
E) foreign travel.

Question 10

In today's global marketing, international trade and foreign production are increasingly managed on a __________________.

A) vertical basis
B) horizontal basis
C) global basis
D) regional basis
E) local basis

Question 11

Although it is not widely known, foreign production constitutes a much larger portion of international business than __________________________________.

A) international trade
B) regional business
C) local business
D) domestic business
E) transnational business

Question 12

Saturation of domestic markets in the industrialized parts of the world has forced many companies to look for marketing opportunities beyond their _______________.

A) local borders.
B) national borders.
C) regional borders.
D) Complex borders.
E) transnational borders.

Question 13

Multinational companies (MNCs) are increasingly managing the international trade flow within themselves. This phenomenon is called _________________.

A) intrafirm trade
B) interfirm trade
C) bi-national trade
D) poly-national
E) geo-national

Question 14

The Silk Road once helped connect:

A) Turkey to Rome.
B) Iran to Rome.
C) Bombay to Rome.
D) Beijing to Rome.
E) Xian to Rome.

Question 15

In global marketing, competitive pressure can also come from _____________ at home.

A) competitors
B) conglomerates
C) groups
D) locals
E) regionals

Question 16

The extensive international penetration of U.S. and other companies has been referred to as ____________________.

A) local reach
B) regional reach
C) political reach
D) social reach
E) global reach

Question 17

The term global epitomizes both the competitive pressure and expanding:

A) basic opportunities.
B) social opportunities.
C) physical opportunities
D) market opportunities.
E) bottom opportunities.

Question 18

According to the text, ____________________ of the world trade is managed one way or another by MNCs.

A) one-third
B) two-thirds
C) one-fourths
D) two-fourths
E) three-fourths

Question 19

_____________ is essentially a creative corporate activity involving the planning and execution of the conception, pricing, promotion, and distribution of ideas, products,
And services in an exchange that not only satisfy customers' present needs but also
Anticipates and creates their future needs at a profit.

A) Selling
B) Sourcing
C) Manufacturing
D) Human resources
E) Marketing

Question 20

____________ revolution has brought profound changes in the world.

A) Wal-Mart
B) CNN
C) MTV
D) Internet
E) Shipping

Question 21

Some companies progress from export marketing to a more involved stage of internationalization once:

A) managers can speak a foreign language.
B) management is willing to commit adequate resources to export activities.
C) the companies stock increases.
D) the metric system becomes standard.
E) new management has been hired.

Question 22

U.S. automobile and consumer electronics manufacturers in the 1960s and 1970s are examples of a(an):

A) multicentric orientation.
B) polycentric orientation.
C) ethnocentric orientation.
D) bicentric orientation.
E) egocentric orientation.

Question 23

When management of a company comes to realize the benefit of economies of scale in product development, manufacturing, and marketing by consolidating some of its
Activities on a regional basis, the company is ready to move into the _____________
Stage of marketing.

A) multinational
B) customization
C) global
D) international
E) polycentric

Question 24

The ________________ stage begins with unsolicited orders from foreign customers.

A) export marketing
B) domestic marketing
C) indirect marketing
D) international marketing
E) multinational marketing

Question 25

Domestic marketing strategy is characterized as a strategy that is developed based on information about domestic customer needs and wants, economic, technological, and
Political environments at home, and ____________________.

A) taxes
B) customer habits
C) geography
D) culture
E) industry trends

Question 26

Five types of marketing that have led to the evolution of global marketing are domestic marketing, export marketing, international marketing, _________________, and global marketing.

A) multinational marketing
B) consumer marketing
C) gray marketing
D) expansion marketing
E) import marketing

Question 27

Domestic marketers tend to be ________________.

A) ethnocentric
B) biocentric
C) polycentric
D) geocentric
E) localcentric

Question 28

If a company were to standardize its product groups within a region (for instance, Western Europe), the company would be characterized as taking a ___________
Orientation to its planning activities.

A) bicentric
B) polycentric
C) geocentric
D) concentric
E) regiocentric

Question 29

Responding to changes in the market and competitive environments by moving forward in a ________________ manner anticipates changes and then formulates
Strategies.

A) proactive
B) deductive
C) constructive
D) reactive
E) participative

Question 30

There are five identifiable stages in the evolution of marketing across national boundaries. The first stage is:

A) global marketing.
B) international marketing.
C) export marketing.
D) direct marketing.
E) domestic marketing.

Question 31

Responding to changes in the market and competitive environments by moving forward in a ______________ manner waits for others to formulate strategies before
Making decisions.

A) proactive
B) deductive
C) constructive
D) reactive
E) participative

Question 32

In a polycentric orientation, marketers begin to _________________ products to local conditions.

A) standardize
B) regulate
C) adapt
D) centralize
E) subsidize

Question 33

Companies often develop different marketing strategies depending on the degree of experience and:

A) the cost of capital in international markets.
B) the span of control of management.
C) their consumer concept.
D) the nature of operations in international markets.
E) the corporate focus.

Question 34

Export marketing consists of:

A) indirect and direct exporting.
B) indirect and longitudinal exporting.
C) indirect and passive exporting.
D) indirect and active exporting.
E) indirect and aggressive exporting.

Question 35

A unique feature of international marketing is its ________________ orientation with emphasis on product and promotional adaptation in foreign markets.

A) geocentric
B) regiocentric
C) ethnocentric
D) polycentric
E) egocentric

Question 36

Once export marketing becomes an integral part of a company's marketing activity, it will begin to seek new directions for growth and international expansion. This stage is called
________________________.

A) exporting.
B) green marketing.
C) multinational marketing.
D) global marketing.
E) international marketing.

Question 37

If international marketing is taken to the extreme, a company may establish an independent foreign subsidiary in each and every foreign market and have each of
The subsidiaries operate independently of each other without any measurable
Headquarters control. This special case is called:

A) multinational marketing.
B) export marketing.
C) international marketing.
D) multidomestic marketing.
E) resource-based marketing.

Question 38

Export marketers still tend to take a(n) ____________ approach to foreign markets.

A) geocentric
B) polycentric
C) ethnocentric
D) dualcentric
E) regiocentric

Question 39

As a company's market share in a number of countries reaches a certain point, it becomes important for the company to defend its position vis-à-vis local
Competition. This is an example of _____________________ orientation.

A) geocentric
B) regiocentric
C) ethnocentric
D) egocentric
E) polycentric

Question 40

When a company focuses solely on its domestic market, this strategy is characterized as one employing:

A) global marketing.
B) international marketing.
C) domestic marketing.
D) indirect marketing.
E) direct marketing.

Question 41

Black & Decker, a U.S. hand tool manufacturer, adopted a(n) __________________ perspective by standardizing and streamlining components such as motors and rotors
While maintaining a wide range of product lines creating a universal image for its
Products.

A) international marketing
B) global marketing
C) multinational marketing
D) export marketing
E) concentric marketing

Question 42

___________________ theory states that a country can gain from engaging in trade even if it has an absolute advantage or disadvantage.

A) Constructive advantage
B) Comparative advantage
C) Concentric advantage
D) Supply and demand
E) Relative cost advantage

Question 43

Global marketing refers to all of the marketing activities except:

A) bi-national efforts.
B) standardization efforts.
C) coordination across markets.
D) global integration.
E) none of the above.

Question 44

An actual exchange rate between two countries is affected by consumer demands and _______________________ in the two countries.

A) money supply situations
B) political alliances
C) the deficit
D) the Federal Reserve
E) the factor formula

Question 45

Which of the following is a principle of international trade?

A) German workers will not work without Union representation.
B) International trade hurts many countries since it is basically unfair to developing nations.
C) International trade increases worldwide production by specialization.
D) Exchange rates are determined by the Hague Convention.
E) Bribery drives up prices in world trade.

Question 46

The _________________ argument says that two countries cannot engage in trade if one country has a(an) ___________________ over the other country. Note: the phrase
Will fit in both blanks.

A) absolute advantage
B) regional advantage
C) supply chain advantage
D) comparative advantage
E) global advantage

Question 47

Global marketing strategy realizes that ___________________ leads to higher costs.

A) operational fragmentation
B) standardization
C) production ISO standards
D) market promotion
E) high technology robots

Question 48

Comparative advantage theory was first presented by:

A) David Ricardo.
B) John Stuart Mill.
C) Michael Porter.
D) Milton Friedman.
E) Adam Smith.

Question 49

In general, a capital-abundant country (such as the United States) tends to specialize in capital-intensive industry and export capital-intensive products, and import labor-
Intensive products. This statement is an illustration of the ____________________
Of comparative advantage.

A) commodity terms of trade theory
B) supply and demand theory
C) diminishing returns theory
D) factor-sourcing theory
E) factor endowment theory

Question 50

Which of the following is a principle of international trade?

A) United States workers rebel against productivity programs.
B) Outsourcing must be used to succeed in international trade.
C) The United Nations will settle all trade disputes.
D) Exchange rates are determined primarily by traded goods.
E) Gray markets make third world countries more efficient.

Question 51

Suppose that you are a strategic planner for Nike. You observe that shoe manufacturing is extremely labor-intensive, while shoe designing is becoming
Increasingly skill-intensive. If you advise to open a manufacturing-assembly plant
In Vietnam, your decision is an illustration of _____________________ thinking.

A) relative advantage
B) absolute advantage
C) comparative advantage
D) production advantage
E) exploitation advantage

Question 52

Which of the following geography or climate issues affects global marketing?

A) geothermal power in Iceland
B) tropical heat in Bangalore , India
C) sugar cane crops in Brazil
D) wet snow in Scandinavia
E) none of the above

Question 53

General Motors has a regional subsidiary, Opel headquartered in Germany, to market both GM and Opel cars with a strong European distinction. This would be an
Example of ________________ marketing.

A) multinational
B) global
C) transnational
D) international
E) domestic

Question 54

To encourage improved standards of living among workers, governments should encourage investment in ______________________ industries.

A) high value added per worker
B) capital intensive
C) labor intensive
D) skill-intensive
E) strength-intensive

Question 55

Marketing executives should have a thorough understanding of not only the availability of various resources but also emerging consumer and societal needs on a ____________________.

A) cluster basis
B) local basis
C) global basis
D) regional basis
E) none of the above

Question 56

The term that describes a price of one good in terms of another is called:

A) comparative terms of trade.
B) regional terms of trade.
C) factor endowment theory.
D) global terms of trade.
E) commodity terms of trade.

Question 57

When a company such as Nike has product designing and development and special material development conducted in the United States and has manufacturing
Operations in labor-abundant countries like China, the company is using
______________________ strategy.

A) relative advantage
B) absolute advantage
C) production advantage
D) comparative advantage
E) geometric advantage

Question 58

In general, a labor-abundant country (such as China) tends to specialize in labor- intensive industry and export labor-intensive products, and imports capital-intensive
Products. This statement is an illustration of the ____________________________
Of comparative advantage.

A) commodity terms of trade theory
B) supply and demand theory
C) factor-sourcing theory
D) factor endowment theory
E) relative advantage theory

Question 59

Even if the United States is more efficient in the production of everything than China, both countries will benefit from their bilateral trade by specializing in what each
Country can produce relatively more efficiently. This statement is an example of
Which economic theory?

A) relative cost advantage
B) supply and demand
C) concentric advantage
D) comparative advantage
E) constructive advantage

Question 60

Which of the following is a principle of international trade?

A) Japanese workers are more productive than any other workers in the world.
B) Countries benefit from international trade.
C) Manufacturers must be forced into international trade.
D) Specialization is bad for international trade.
E) Exchange rates are determined by the World Bank.

Question 61

The following statement characterizes which country's orientation to introducing products to their mass market: Developing and marketing products that not only
Conserve material and capital but also space to address their consumer's acute
Concern about space limitation.

A) Japan.
B) Western Europe.
C) Mexico.
D) Canada.
E) United States.

Question 62

Appropriability regime helps companies retain their _______________ advantage:

A) dynamic
B) external
C) internal
D) social
E) technological

Question 63

When Nestle`, a Swiss food company, enjoys economies of scale by considering European, U.S., and Japanese markets together as its primary market it is using the
_________________________ argument.

A) economies of scale
B) market expansion
C) market contraction
D) technology power
E) economies of scope

Question 64

In the ________________ stage of the international product cycle theory, U.S. companies which have carved out market share in Europe and Japan by exporting
Decide to make a direct investment in production in those markets to protect their
Market position there.

A) introduction
B) saturation
C) growth
D) decline
E) maturity

Question 65

With respect to the international product cycle theory, which stage's orientation is primarily domestic in nature?

A) Growth.
B) Maturity.
C) Saturation.
D) Introduction.
E) Decline.

Question 66

Preference similarity explains why:

A) monopoly power has grown tremendously.
B) low cost producers can still enjoy economies of scale.
C) profits are at an all time high in the industrialized world.
D) intra-industry trade has grown tremendously among the industrialized countries with similar income levels.
E) comparative advantage theory works best in third world countries.

Question 67

One of the key underlying assumptions in the international product cycle theory is that:

A) "What goes around, comes around."
B) "Necessity is the mother of invention."
C) "If it ain't broke, don't fix it."
D) "You get what you pay for."
E) "If something can go wrong, it usually will."

Question 68

A large domestic market such as in the United States makes it possible for U.S. companies to enjoy _________________ in mass production and mass marketing,
Enabling them to become lower cost producers than their competition in foreign
Countries.

A) monopoly power
B) preference similarity
C) economies of scale
D) competitive advantage
E) duopoly power

Question 69

Technological innovation can provide an innovative company a competitive advantage, or _____________________ over its competitors both at home and
Abroad.

A) power gap
B) preference gap
C) technological gap
D) economic gap
E) life cycle gap

Question 70

A company's proprietary expertise that makes it different its competitors and helps to maintain its competitive advantage can be discussed under the following theory:

A) internalization or technological theory.
B) Internalization or transaction cost theory.
C) Internalization or regional cost theory.
D) Internalization or transnational theory.
E) Internalization or traditional cost theory.

Question 71

The comparative advantage theory is useful in explaining _____________________ between countries that have very different factor endowments.

A) cost advantages
B) resource allocations
C) promotional expenses
D) intra-industry trade
E) inter-industry trade

Question 72

Historically, _______________ companies developed and introduced many products that were labor- and time-saving or responded to high-income consumer needs,
Including dishwashers, microwave owens, automatic washers, and dryers, PCs, and so
On:

A) Indian
B) Turkish
C) Irish
D) U.S.
E) Mexican

Question 73

When a company such as Nike wishes to pursue a comparative advantage strategy, it would have product designing and development and special material development
Conducted in the United States and _________________ operations conducted in
Labor-abundant countries like China or Brazil.

A) manufacturing
B) custom painting
C) testing
D) inventory
E) promotion

Question 74

In the _________________ stage of the international product cycle theory , the United States eventually begins to import what was once a U.S. innovation.

A) introduction
B) saturation
C) growth
D) decline
E) maturity

Question 75

In the __________________ stage of the international product cycle theory, U.S. companies typically increase exports to Europe and Japan as those foreign markets expand.

A) introduction
B) saturation
C) growth
D) maturity
E) decline

Question 76

Dominant design is synonymous with ________________________.

A) dynamic design.
B) external design.
C) internal design.
D) complex design.
E) standard design.

Question 77

The Silk Road once connected Shanghai (China) to Istanbul (Turkey) on land.

Question 78

The following statement characterizes which country's orientation to introducing products to their mass market: Innovate on material- and capital-saving products
And processes to meet their local consumer's needs and lifestyle orientation (such
As small and no-frill automobiles and recyclable products).

A) Japan.
B) Western Europe.
C) Canada.
D) Mexico.
E) United States.

Question 79

An example of ____________________ competition is when BMW exports its sports cars to Japan, while Honda exports its competing models to Germany.

A) inter-industry
B) between-industry
C) intra-industry
D) superficial
E) conglomerate

Question 80

The __________________________ addresses the following questions: Why and how does competition tend to evolve over time and across national boundaries in the
Same industry? How does a company develop its marketing strategy in the presence
Of competitors at home and abroad?

A) international complexity theory
B) international technology theory
C) international chaos theory
D) international game theory
E) international product cycle theory