Question 1

One disadvantage of direct investment when entering a new global market is

Accepted Answer

A)   intermediaries have the potential to harm the brand.
B)   the firm entering the foreign market must pay royalties to the government.
C)   the company forgoes control over its product.
D)   the financial commitments involved.
E)   this method is likely to provide the fewest cost savings relative to the other global market entry options.F) A) and E)
G) A) and B)

Question 2

The estimated cost of economic espionage to firms in the United States is estimated to be upwards of

Accepted Answer

A)   $10 billion per year.
B)   $150 billion per year.
C)   $600 billion per year.
D)   $900 billion per year.
E)   $2 trillion per year.F) C) and E)
G) B) and E)

Question 3

Economic infrastructure is

Accepted Answer

A)   a nation's military-industrial complex.
B)   a country's governmental services.
C)   the people and the wealth of a nation.
D)   a country's communications, transportation, financial, and distribution systems.
E)   all of a country's natural resources, whether or not they are currently being exploited.F) C) and E)
G) A) and B)

Question 4

Figure 7-4
-According to Figure 7-4 above, point B would most likely represent which option for entering the global marketplace?

Accepted Answer

A)   exporting
B)   joint venture
C)   direct investment
D)   franchising
E)   licensingF) B) and D)
G) C) and D)

Question 5

A global market entry strategy in which a foreign company and a local firm invest together to create a local business in order to share ownership, control, and profits of the new company is referred to as

Accepted Answer

A)   licensing.
B)   a joint venture.
C)   direct exporting.
D)   contract assembly.
E)   dual adaptation.F) B) and D)
G) All of the above

Question 6

The EU has benefited its member nations in part because

Accepted Answer

A)   there is a legally binding code of economic conduct.
B)   there is immunity against world recessions.
C)   there are fewer regulatory restrictions on transportation, advertising, and promotion.
D)   there is a common language advantage among EU consumers.
E)   most companies within the EU are engaging in strategic global partnerships.F) A) and D)
G) A) and E)

Question 7

All nations and regions of the world do not participate equally in world trade. World trade flows reflect

Accepted Answer

A)   the influences of culture and language.
B)   the differences among industries, countries, and regions.
C)   interdependencies among industries, countries, and regions.
D)   the challenges of currency and exchange imbalances.
E)   the increasing importance of services verses products.F) None of the above
G) A) and B)

Question 8

When foreign currencies can buy more U.S. dollars,

Accepted Answer

A)   U.S. products are more expensive to foreign customers.
B)   U.S. products are more expensive to U.S. customers.
C)   U.S. products are less expensive to foreign customers.
D)   economists consider it an indicator of an impending long-term economic upturn.
E)   American consumers will buy in large quantities and stockpile in fear of an impending economic crisis.F) A) and C)
G) A) and B)

Question 9

Countertrade refers to

Accepted Answer

A)   the illegal agreement of one country to buy products exclusively from another.
B)   the legal agreement of one country to buy and sell certain products exclusively from one another.
C)   the practice of using barter rather than money for making global sales.
D)   the sale of industrial goods from a brick and mortar outlet rather than directly from the manufacturer.
E)   the use of foreign currency in making global purchases to minimize risk from currency fluctuation.F) C) and D)
G) B) and E)

Question 10

Customs are

Accepted Answer

A)   what is considered normal and expected about the way people do things in a specific country.
B)   those actions or activities within a community that are unique or distinctly different from any other group.
C)   actions or behaviors that are repeated over time and carry a specific meaning to a unique group, nationality, or ethnicity.
D)   traditions among a group of people, a nation, or ethnicity that affect their purchase behaviors.
E)   what would be considered unusual or even unacceptable regarding personal behavior in a specific country.F) A) and B)
G) C) and D)

Question 11

Consumer groups living in many countries or regions of the world that have similar needs or seek similar features and benefits from products or services are referred to as

Accepted Answer

A)   transnational consumers.
B)   borderless consumers.
C)   international consumers.
D)   multinational consumers.
E)   global consumers.F) All of the above
G) A) and B)

Question 12

The European Union is an economic and political union of ________ member countries that have eliminated most barriers to the free flow of products, services, capital, and labor across their borders.

Accepted Answer

A)   17
B)   20
C)   27
D)   30
E)   37F) A) and E)
G) A) and B)

Question 13

Yum! Brands, the restaurant division of PepsiCo, has 12,600 KFC restaurants abroad, with more than 3,700 restaurants in China. Many of the latter are locally owned and subject to a contractual agreement that allows the owners to operate the business under the established KFC brand name and according to specific rules. Yum! Brands is engaged in

Accepted Answer

A)   contract assembly.
B)   a joint venture.
C)   contract manufacturing.
D)   a partnership.
E)   franchising.F) D) and E)
G) None of the above

Question 14

The use of ________ as a tool for exchanging products, services, and information on a global scale is one of the developments that has affected world trade.

Accepted Answer

A)   buying centers
B)   Internet technology
C)   language translators
D)   tariff and quota policies
E)   multinational marketing strategiesF) A) and B)
G) C) and D)

Question 15

The law, as amended by the International Anti-Dumping and Fair Competition Act, that makes it a crime for U.S. corporations to bribe an official of a foreign government or political party to obtain or retain business in a foreign country, is referred to as the

Accepted Answer

A)   International Law for Egalitarian Ethics Act.
B)   International Fair Practices Act.
C)   Law of International Equity Act.
D)   International Law of Ethical Business Practices Act.
E)   Foreign Corrupt Practices Act.F) B) and E)
G) A) and C)

Question 16

All of the following are advantages of licensing except which?

Accepted Answer

A)   the foreign country's increased employment by having the product manufactured locally
B)   the licensee's access to information that allows it to start with a competitive advantage
C)   the lower risk to the company granting the license compared to direct investment
D)   the licensor's ability to protect its brand name from harm
E)   the capital-free entry into a foreign countryF) A) and B)
G) All of the above

Question 17

An estimated 10 to 15 percent of world trade involves ________, the practice of using barter rather than money for making global sales.

Accepted Answer

A)   cross trade
B)   countertrade
C)   exchange trade
D)   trade feedback
E)   market tradingF) D) and E)
G) A) and B)

Question 18

Figure 7-2
-The question mark in Figure 7-2 above leads to which of the following as a result of the imposition of tariffs and quotas?

Accepted Answer

A)   an increase in world trade
B)   a decrease in world trade
C)   a limit on exports
D)   an increase in exports
E)   countertradeF) A) and B)
G) C) and D)

Question 19

Starbucks and TATA Global Beverage have together formed TATA Starbucks Limited in order to bring Starbucks to India. The global market entry strategy is known as

Accepted Answer

A)   franchising.
B)   a joint venture.
C)   licensing.
D)   direct investment.
E)   exporting.F) None of the above
G) C) and E)

Question 20

Consumer ethnocentrism refers to

Accepted Answer

A)   the belief that all products that are foreign-made are cheap and of poor quality.
B)   the belief that one should only purchase products made by indigenous groups in developing countries.
C)   the belief that all corporations are corrupt and consumers must look out for themselves.
D)   the tendency to believe that the only products that are of true quality are those that are manufactured in one's own country.
E)   the tendency to believe it is inappropriate, even immoral, to purchase foreign-made products.F) All of the above
G) C) and D)

Exam 7: Understanding and Reaching Global Consumers and Markets

A global market entry strategy in which a foreign company and a local firm invest together to create a local business in order to share ownership, control, and profits of the new company is referred to as

Correct Answer
verified

The use of ________ as a tool for exchanging products, services, and information on a global scale is one of the developments that has affected world trade.

Correct Answer
verified

Countertrade refers to

Correct Answer
verified

Economic infrastructure is

Correct Answer
verified

The estimated cost of economic espionage to firms in the United States is estimated to be upwards of

Correct Answer
verified

Correct Answer
verified

The European Union is an economic and political union of ________ member countries that have eliminated most barriers to the free flow of products, services, capital, and labor across their borders.

Correct Answer
verified

All of the following are advantages of licensing except which?

Correct Answer
verified

One disadvantage of direct investment when entering a new global market is

Correct Answer
verified

Consumer groups living in many countries or regions of the world that have similar needs or seek similar features and benefits from products or services are referred to as

Correct Answer
verified

Figure 7-2 -The question mark in Figure 7-2 above leads to which of the following as a result of the imposition of tariffs and quotas?

Correct Answer
verified

When foreign currencies can buy more U.S. dollars,

Correct Answer
verified

All nations and regions of the world do not participate equally in world trade. World trade flows reflect

Correct Answer
verified

Figure 7-4 -According to Figure 7-4 above, point B would most likely represent which option for entering the global marketplace?

Correct Answer
verified

An estimated 10 to 15 percent of world trade involves ________, the practice of using barter rather than money for making global sales.

Correct Answer
verified

Customs are

Correct Answer
verified

The law, as amended by the International Anti-Dumping and Fair Competition Act, that makes it a crime for U.S. corporations to bribe an official of a foreign government or political party to obtain or retain business in a foreign country, is referred to as the

Correct Answer
verified

The EU has benefited its member nations in part because

Correct Answer
verified

Consumer ethnocentrism refers to

Correct Answer
verified

Starbucks and TATA Global Beverage have together formed TATA Starbucks Limited in order to bring Starbucks to India. The global market entry strategy is known as

Correct Answer
verified

Exam 7: Understanding and Reaching Global Consumers and Markets

A global market entry strategy in which a foreign company and a local firm invest together to create a local business in order to share ownership, control, and profits of the new company is referred to as

Correct AnswerverifiedShow Answer

The use of ________ as a tool for exchanging products, services, and information on a global scale is one of the developments that has affected world trade.

Correct AnswerverifiedShow Answer

Countertrade refers to

Correct AnswerverifiedShow Answer

Economic infrastructure is

Correct AnswerverifiedShow Answer

The estimated cost of economic espionage to firms in the United States is estimated to be upwards of

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The European Union is an economic and political union of ________ member countries that have eliminated most barriers to the free flow of products, services, capital, and labor across their borders.

Correct AnswerverifiedShow Answer

All of the following are advantages of licensing except which?

Correct AnswerverifiedShow Answer

One disadvantage of direct investment when entering a new global market is

Correct AnswerverifiedShow Answer

Consumer groups living in many countries or regions of the world that have similar needs or seek similar features and benefits from products or services are referred to as

Correct AnswerverifiedShow Answer

Figure 7-2 -The question mark in Figure 7-2 above leads to which of the following as a result of the imposition of tariffs and quotas?

Correct AnswerverifiedShow Answer

When foreign currencies can buy more U.S. dollars,

Correct AnswerverifiedShow Answer

All nations and regions of the world do not participate equally in world trade. World trade flows reflect

Correct AnswerverifiedShow Answer

Figure 7-4 -According to Figure 7-4 above, point B would most likely represent which option for entering the global marketplace?

Correct AnswerverifiedShow Answer

An estimated 10 to 15 percent of world trade involves ________, the practice of using barter rather than money for making global sales.

Correct AnswerverifiedShow Answer

Customs are

Correct AnswerverifiedShow Answer

The law, as amended by the International Anti-Dumping and Fair Competition Act, that makes it a crime for U.S. corporations to bribe an official of a foreign government or political party to obtain or retain business in a foreign country, is referred to as the

Correct AnswerverifiedShow Answer

The EU has benefited its member nations in part because

Correct AnswerverifiedShow Answer

Consumer ethnocentrism refers to

Correct AnswerverifiedShow Answer

Starbucks and TATA Global Beverage have together formed TATA Starbucks Limited in order to bring Starbucks to India. The global market entry strategy is known as

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified