Question 1

A company selling fashionable clothing in country X is very successful in its home country,but it wants to start selling its products worldwide.The COO thinks that the company should adopt a standardized marketing approach throughout the world.Which of the following would support the COO's position?
A) Long production runs of the same items would allow the company to save money.
B) Different cultures vary in how they perceive clothing made in country X.
C) The company has had problems achieving a consistent marketing strategy in country X.
D) The company will be facing strong competition from other brands in various countries throughout the world.
E) The company has a big marketing budget to support advertising.

Accepted Answer

Long production runs of the same items would allow the company to save money.

Question 2

Which of the following social or cultural differences would a Canadian exporter of refrigerators to Europe have to deal with?
A) Consumers shop on a daily basis.
B) The average age of the population is younger.
C) The average age of the population is older.
D) Adjusted menus,ingredients,and hours of operation
E) Foreign consumers are shorter and slimmer than Canadian consumers.

Accepted Answer

Consumers shop on a daily basis.

Question 3

When Bob began exporting his famous barbecue beef he found that one country would let him bring only 1000 pounds of beef into the country each year.Bob had just discovered a(n)
A) embargo.
B) local content law.
C) quota.
D) tariff.
E) subsidy.

Accepted Answer

quota.

Question 4

Executives at Best Foods,a successful Canadian company that produces cold breakfast cereal,are undecided about whether to start exporting to China.Which of the following would lend the most support to the idea of exporting to China?
A) Best Foods has a large budget to pursue investments in foreign countries.
B) Best Foods must have strict control over its international operations.
C) Best Foods will have to modify its product line to suit Chinese tastes and preferences.
D) Best Foods' products do not have a particularly "healthy" reputation in Canada.
E) Best Foods has significant excess capacity.

Accepted Answer

Best Foods has significant excess capacity.

Question 5

Canada prohibits the importing of ivory from any foreign nation.This is a(n)
A) local content law.
B) subsidy.
C) tariff.
D) quota.
E) embargo.

Accepted Answer

embargo.

Question 6

If the Mexican government put a limit on the ounces of tequila being imported into Mexico,what has occurred?
A) The government has installed a protection plan for its own tequila producers and is encouraging imports.
B) The government has installed both a protection plan for its own tequila producers and a quota.
C) The government has installed a quota and an embargo.
D) The government is encouraging imports and installed an embargo.
E) The government installed an embargo and a protection plan.

Accepted Answer

The government has installed both a protection plan for its own tequila producers and a quota.

Question 7

The CEOs of Companies A and B are investigating expansion into new markets.Which of the following describes a situation that is most suitable for an importing-exporting opportunity?
A) Country X is strong in the production of textiles,while Country Y is good at producing high-yield crops.
B) Company A will provide parts used in the production of equipment by Company B if company B will give discounts on the manufacturing equipment.
C) The southern region of Country X over-produces a wide range of produce,while few crops can be efficiently grown in the northern region.
D) Companies A and B in country Y are talking about forming a joint venture to provide goods to Country X.
E) Country X wants to invest in foreign markets while Country Y currently has a large trade deficit.

Accepted Answer

Country X is strong in the production of textiles,while Country Y is good at producing high-yield crops.

Question 8

Executives at Best Foods,a successful Canadian company that produces cold breakfast cereal,are undecided about whether to start exporting to China.Which of the following would weaken the argument for exporting to China?
A) Best Foods will have to put out a lot of money if it decides to enter a joint venture in China.
B) Best Foods will have to hire sales personnel in China.
C) The executives at Best Foods are risk-averse.
D) Best Foods does not have expertise in the Chinese market and the company has not found reliable intermediaries with expertise in that market.
E) Best Foods can export its products pretty much as they are,since more and more Chinese consumers are eating breakfast cereals.

Accepted Answer

Best Foods does not have expertise in the Chinese market and the company has not found reliable intermediaries with expertise in that market.

Question 9

Laura's Lights began shipping products to its new partner in a foreign nation only to find out that before the products would be let into the country a tax of $1.00 per unit had to be paid.This tax is known as a(n)
A) subsidy.
B) local content law.
C) quota.
D) embargo.
E) tariff.

Accepted Answer

tariff.

Question 10

The only three countries in the world that are net sellers of their companies are
A) Canada,Spain,and Italy.
B) France,China,and Finland.
C) Germany,Vietnam,and Australia.
D) Sweden,Denmark,and Finland.
E) Canada,the U.S.,and Great Britain.

Accepted Answer

Canada,the U.
S.
,and Great Britain.

Question 11

Executives at Best Foods,a successful Canadian company that produces cold breakfast cereal,are undecided about whether to start exporting its products to China.Which of the following would be the strongest argument against exporting to China?
A) The Chinese government gives subsidies and tax incentives to Chinese manufacturers who want to export their products.
B) Steamed dough,noodles,fruits,and eggs are what the typical Chinese consumer eats for breakfast.
C) It would take a lot of time to establish operations in China because of regulatory hurdles put up by the government of China.
D) Best Food executives know of several companies that failed in China because they didn't understand local requirements.
E) To successfully penetrate the Chinese market will require extensive use of local employees who know all the nuances of the Chinese culture.

Accepted Answer

Steamed dough,noodles,fruits,and eggs are what the typical Chinese consumer eats for breakfast.

Question 12

A company selling fashionable clothing in country X is very successful in its home country,but it wants to start selling its products worldwide.The CEO thinks that a fashion-oriented market segment already exists in many countries,and that consumers would be receptive to the company's product line.Which of the following would strengthen the CEO's position?
A) People in different parts of the world tend to embrace their own clothing fashions.
B) Consumers in different parts of the world have varied spending power.
C) Clothing fashions that originate in country X tend to appeal to different places in the world.
D) The company has accumulated extensive market data on consumers in country X.
E) The company has been in business for just a few years.

Accepted Answer

Clothing fashions that originate in country X tend to appeal to different places in the world.

Question 13

A Canadian fast food restaurant chain,which has loyal customers and strong demand for its products,is thinking about expanding its operations to China.Which of the following would favour the expansion?
A) Fluctuating exchange rates affect the value of sales made in different countries.
B) Even companies with global brands usually have to tailor their product offerings to accommodate the differing tastes of consumers in different countries.
C) The most costly item on the chain's menu is not its biggest profit contributor.
D) Market research shows that reaching additional customers in Canada will cost more than expanding into China.
E) Chinese companies don't usually use franchising when they try to expand into other countries.

Accepted Answer

Market research shows that reaching additional customers in Canada will cost more than expanding into China.

Question 14

The CEO of Charter Books thinks that the company should "go global" by using the internet,but the vice president thinks that too many problems would be encountered.Which of the following statements would support the vice president's position?
A) The English language dominates the internet,but more traffic would be generated by web pages in the local language.
B) Going global via the internet would not put a big strain on existing personnel.
C) Books can be easily shipped overseas by companies like UPS and FedEx.
D) The marketing department estimates that sales will initially increase by about 30 percent,and then taper off to a 20 percent increase annually.
E) The advertising costs needed to increase sales would be incurred would be fairly modest.

Accepted Answer

The English language dominates the internet,but more traffic would be generated by web pages in the local language.

Question 15

The CEO of Charter Books thinks that the company should "go global" by using the internet,but the vice president thinks that too many problems would be encountered.Which of the following statements would support the CEO's position?
A) People in different countries have different preferences with regard to how they make payment for products.
B) Demographic targeting of consumers is more easily accomplished on the internet than in other forms of advertising.
C) If the local currency is used,that may increase demand,but there are challenges with respect to currency exchange and shipping.
D) Advertising laws vary from country to country.
E) Import and export laws in various countries would need to be understood.

Accepted Answer

Demographic targeting of consumers is more easily accomplished on the internet than in other forms of advertising.

Question 16

If Montrose Corp.purchases tangible assets in Germany,which international organizational structure is it using?
A) Independent agent
B) Licensing agreement
C) Foreign direct investment
D) Branch office
E) Strategic alliance

Accepted Answer

Foreign direct investment

Question 17

When the Canadian government imposed a 34.6 percent tariff on barbecues made in China because complaints were received that Chinese companies were unfairly subsidizing the production of barbecues,this was an example of
A) a revenue tariff.
B) a protectionist tariff.
C) a quota.
D) an embargo.
E) none of these.

Accepted Answer

a protectionist tariff.

Question 18

Executives at Best Foods,a successful Canadian company that produces cold breakfast cereal,are undecided about whether to begin exporting its products to China.Which of the following would strengthen the argument for exporting to the Chinese market?
A) The middle class is growing rapidly in China and members of this class are quick to adopt western lifestyles and product preferences.
B) Growth in the Canadian cereal market continues to be strong.
C) A stronger Chinese currency would affect Chinese exports.
D) Chinese food preferences evolve slowly.
E) China recently signed a free-trade agreement with the Association of Southeast Asian Nations (ASEAN).

Accepted Answer

The middle class is growing rapidly in China and members of this class are quick to adopt western lifestyles and product preferences.

Question 19

Investment Canada's mandate is
A) to focus on the promotion of Canadian goods to other countries.
B) to focus on attracting foreign investment to Canada.
C) to track investment money to overseas banks.
D) to focus on aiding Canadian businesses in collecting money from their customers in foreign countries.
E) to promote the investment of Canadian dollars into foreign business operations.

Accepted Answer

to focus on attracting foreign investment to Canada.

Question 20

In marketing its new product in a foreign nation,Mega Computer was surprised to see the very low prices on its local competitor's models.Subsequent investigation revealed that the domestic businesses had received money from the government.Mega now knows what a(n)________ is.
A) subsidy
B) tariff
C) embargo
D) local content law
E) quota

Accepted Answer

subsidy

Quiz 5: The Global Context of Business

A company selling fashionable clothing in country X is very successful in its home country,but it wants to start selling its products worldwide.The COO thinks that the company should adopt a standardized marketing approach throughout the world.Which of the following would support the COO's position?

Which of the following social or cultural differences would a Canadian exporter of refrigerators to Europe have to deal with?

When Bob began exporting his famous barbecue beef he found that one country would let him bring only 1000 pounds of beef into the country each year.Bob had just discovered a(n)

Executives at Best Foods,a successful Canadian company that produces cold breakfast cereal,are undecided about whether to start exporting to China.Which of the following would lend the most support to the idea of exporting to China?

Canada prohibits the importing of ivory from any foreign nation.This is a(n)

If the Mexican government put a limit on the ounces of tequila being imported into Mexico,what has occurred?

The CEOs of Companies A and B are investigating expansion into new markets.Which of the following describes a situation that is most suitable for an importing-exporting opportunity?

Executives at Best Foods,a successful Canadian company that produces cold breakfast cereal,are undecided about whether to start exporting to China.Which of the following would weaken the argument for exporting to China?

Laura's Lights began shipping products to its new partner in a foreign nation only to find out that before the products would be let into the country a tax of $1.00 per unit had to be paid.This tax is known as a(n)

The only three countries in the world that are net sellers of their companies are

Executives at Best Foods,a successful Canadian company that produces cold breakfast cereal,are undecided about whether to start exporting its products to China.Which of the following would be the strongest argument against exporting to China?

A Canadian fast food restaurant chain,which has loyal customers and strong demand for its products,is thinking about expanding its operations to China.Which of the following would favour the expansion?

The CEO of Charter Books thinks that the company should "go global" by using the internet,but the vice president thinks that too many problems would be encountered.Which of the following statements would support the vice president's position?

The CEO of Charter Books thinks that the company should "go global" by using the internet,but the vice president thinks that too many problems would be encountered.Which of the following statements would support the CEO's position?

If Montrose Corp.purchases tangible assets in Germany,which international organizational structure is it using?

When the Canadian government imposed a 34.6 percent tariff on barbecues made in China because complaints were received that Chinese companies were unfairly subsidizing the production of barbecues,this was an example of

Executives at Best Foods,a successful Canadian company that produces cold breakfast cereal,are undecided about whether to begin exporting its products to China.Which of the following would strengthen the argument for exporting to the Chinese market?

Investment Canada's mandate is

In marketing its new product in a foreign nation,Mega Computer was surprised to see the very low prices on its local competitor's models.Subsequent investigation revealed that the domestic businesses had received money from the government.Mega now knows what a(n) ________ is.