Question 1

Unlike an EMC or an ETC,manufacturer's export agents are international sales representatives who work on commission in a short-term relationship with the small domestic company.

Accepted Answer

Manufacturer's export agents are indeed international sales representatives who work on commission in a short-term relationship with the small domestic company, unlike EMCs (Export Management Companies) or ETCs (Export Trading Companies).

Question 2

Even though large companies must view themselves as "global companies" if they are to succeed,small companies cannot because they have a significant competitive disadvantage in the global environment.

Accepted Answer

Small companies can also view themselves as global companies and can leverage technology and communication channels to compete in the global marketplace. While they may face certain challenges such as limited resources and capital, they can still carve out a niche and succeed on a global scale.

Question 3

Going up against some of the toughest competition in the world forces a company to hone its competitive skills.

Accepted Answer

When a company competes against tough competitors, it must improve its competitive skills to survive and thrive in the market.

Question 4

A recent study concluded that American firms with global operations grew faster and earned more than purely domestic companies.

Accepted Answer

The study concluded that American firms with global operations grew faster and earned more than purely domestic companies.

Question 5

Going global is risk-free

Accepted Answer

Going global comes with its fair share of risks, including cultural differences, political instability, exchange rate fluctuations, and legal and regulatory issues, among others. It is important for businesses to carefully research and plan their strategies before expanding globally to minimize these risks.

Question 6

Martha has heard that Iranian caviar is in demand and is planning to start an importing business.After further research,she found that she is not able to import such product from Iran to the United States.This is an example of:

Accepted Answer

The situation described is an example of an embargo, which is a government-imposed restriction on trade. In this case, the United States government has imposed an embargo on Iranian goods, including caviar, due to political tensions between the two countries. Tariffs are taxes on imported goods, quotas are limits on the quantity of imported goods, and dumping is the practice of selling goods in a foreign market at a lower price than they are sold in the domestic market. None of these terms are applicable to the situation described.

Question 7

An important question for the small business owner to ask before entering global markets is,"If we go global,can we get back out?"

Accepted Answer

It is important for small business owners to consider their exit strategy in case their global venture does not work out as planned. Being able to exit the global market can help a business avoid significant financial losses and potential damage to their reputation.

Question 8

Globalization is risky

Accepted Answer

Globalization involves interconnectedness between different countries and economies, which can lead to economic and political instability, as seen in financial crises and issues such as outsourcing and job loss. There are also environmental and cultural risks associated with globalization, such as the loss of traditional ways of life and the depletion of natural resources. Therefore, it can be considered a risky process.

Question 9

George is planning to import fabrics to the Bahamas.After investigating the trade rules,he found that he can only import limited yards of fabrics to the Bahamas.This is an example of:

Accepted Answer

The limited amount of yards of fabrics that George can import to the Bahamas indicates a quota. A quota is a limit on the amount of a product that can be imported into a country.

Question 10

Small companies can no longer consider themselves to be strictly domestic businesses in this hotly competitive global environment

Accepted Answer

With advancements in technology and easier access to international markets, small companies need to expand their reach and consider themselves as global businesses to stay competitive.

Question 11

In order to grow their international business,Chong and Kelly's Engineered Demolitions,they have had to become more culturally sensitive.

Accepted Answer

To effectively expand their business internationally, it is essential for Chong and Kelly's Engineered Demolitions to understand and respect cultural differences in the countries they are operating in.

Question 12

Which of the following is correct?

Accepted Answer

A tariff is a tax or duty imposed on imported goods, while a quota is a limit on the quantity of a product that can be imported into a country. Therefore, option A and C are both correct statements.

Question 13

Going global tends to make companies more quality and customer conscious.

Accepted Answer

When companies operate in a global market, they have to face more competition which leads to a higher level of quality and customer service to keep up with the competition. This is because customers tend to have higher expectations and are more aware of their options.

Question 14

Going global can lower manufacturing costs.

Accepted Answer

Going global allows companies to take advantage of lower labor and production costs in other countries, resulting in a reduction in manufacturing costs. Additionally, companies can benefit from economies of scale, access to new markets, and increased competition, further reducing costs.

Question 15

A(n)________ is a total ban on imports of certain products or all products from a particular nation.

Accepted Answer

An embargo is a total ban on imports of certain products or all products from a particular nation. Tariff is a tax on imported goods, quota is a limit on the quantity of a product that can be imported, and dumping is selling products in a foreign market at a lower price than their home market. None of these fully fit the definition of a total ban on imports.

Question 16

A ________ is a document the seller draws on the buyer,requiring the buyer to pay the face amount (the purchase price of the goods)either on sight (a sight draft)or on a specified date (a time draft)once the goods are shipped.

Accepted Answer

A bank draft is a document that the seller draws on the buyer, requiring the buyer to pay the face amount either on sight or on a specified date once the goods are shipped.

Question 17

The ________ of a nation includes the beliefs,values,views,and mores that its inhabitants share.

Accepted Answer

The term that best fits the description of the shared beliefs, values, views, and mores of a nation is cultural beliefs. A nation's culture is a broad term that encompasses everything from its food, music, and art to its religious and ethical beliefs. It is shaped by centuries of history, geography, language, and social structure, and it plays a critical role in determining how people interact with one another and with the wider world. While political, business, and personal beliefs all play important roles in shaping a society, they are more narrow in focus than the broader cultural beliefs that are shared by all members of a nation.

Question 18

For many businesses across the world,"going global" is now a matter of survival,not preference.

Accepted Answer

With increasing competition and globalization of markets, businesses need to expand beyond their domestic market to remain relevant and profitable. Therefore, going global has become essential for survival rather than just a preference.

Question 19

The least expensive way to enter international markets is by using a trade intermediary.

Accepted Answer

While using a trade intermediary can be a cost-effective way to enter international markets, it is not always the least expensive. Other options like direct exporting or licensing may be less costly depending on the specific circumstances.

Question 20

One of the issues an entrepreneur must address before going global is whether or not there is a profitable market in which the firm has the potential to be successful for an extended period of time.

Accepted Answer

It is crucial for an entrepreneur to thoroughly research and evaluate potential markets before expanding globally to ensure profitability and long-term success.

Quiz 12: Global Marketing Strategies