Question 1

McDonald's sells its popular Maharaja Mac that consists of two all-chicken patties,special sauce,lettuce,cheese,pickles,and onions on a sesame-seed bun in __________.

Accepted Answer

A)   Russia
B)   China
C)   Tanzania
D)   Egypt
E)   IndiaF) B) and D)
G) A) and E)

Question 2

Another term for a gray market is

Accepted Answer

A)   parallel exporting.
B)   back-channel market.
C)   mature marketing.
D)   parallel importing.
E)   transparent market.F) None of the above
G) A) and B)

Question 3

Figure 7-2
-According to Michael Porter's diamond in Figure 7-2 above,quadrant "A" represents

Accepted Answer

A)   factor conditions.
B)   related and supporting industries.
C)   demand conditions.
D)   managerial conditions.
E)   company strategy, structure, and rivalry.F) B) and D)
G) A) and C)

Question 4

Customs refer to

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 only 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 unexpected, and even unacceptable about the way people do things in a specific country.F) B) and D)
G) D) and E)

Question 5

Figure 7-5
-According to Figure 7-5 above,point "B" would most likely be __________.

Accepted Answer

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

Question 6

are the market entry strategy options available to a company seeking to enter the global marketplace? How do they relate to each other in terms of profit potential,risk,financial commitment required,and marketing control?

Accepted Answer

Once a company has decided to enter the ...

Question 7

Figure 7-7
-Figure above 7-7 outlines the distribution channels through which a product manufactured in one country must travel to reach its destination in another country.Channels of distribution in global marketing are often long and complex."A" represents the __________ and "B" identifies the __________.

Accepted Answer

A)   seller; final consumer
B)   seller; seller's international marketing headquarters
C)   seller international marketing headquarters; channels between nations
D)   channels between nations; channels within foreign nations
E)   channels within foreign nations; final consumerF) A) and B)
G) A) and C)

Question 8

EU has benefited its member nations because firms do not need to market their products and services on a nation-by-nation basis,most tariffs that affect pricing practices have been removed,and

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) B) and E)
G) C) and D)

Question 9

Competitive advantage for global firms grows out of continuous improvement,__________,and change.

Accepted Answer

A)   product quality
B)   employment of a multicultural or multinational staff
C)   membership in a formalized trade organization
D)   market research
E)   innovationF) None of the above
G) B) and E)

Question 10

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 products exclusively with 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 legal tender in making global sales.F) B) and D)
G) A) and E)

Question 11

Although there are many factors contributing to the success of major global marketers,a common theme seems to be that they

Accepted Answer

A)   first became involved with a formalized trade organization, such as the WTO.
B)   specialized in services rather than consumer goods.
C)   employed a multicultural or multinational staff.
D)   first succeeded in intense domestic competition.
E)   were the largest companies in their industry.F) D) and E)
G) C) and D)

Question 12

PRS group maintains a website that can be used to determine

Accepted Answer

A)   changing demographic and psychographic data for each country in the registry.
B)   a country's political risk ratings using multiple databases of country-specific information.
C)   the tariffs of each country and their relative effect on product/services sales.
D)   the rankings of American products relative to domestic equivalents in each country.
E)   changing social trends within different segments of the economy.F) C) and D)
G) D) and E)

Question 13

Personally or socially preferable modes of conduct or states of existence that tend to persist over time are referred to as __________.

Accepted Answer

A)   customs
B)   ethics
C)   values
D)   culture
E)   beliefsF) A) and E)
G) All of the above

Question 14

currency exchange rate refers to

Accepted Answer

A)   the unit equivalency of all international currency.
B)   the ratio of a nation's basic unit of currency relative to the price of silver.
C)   the ratio of a nation's basic unit of currency relative to the price of gold.
D)   the price of one country's currency expressed in terms of another country's currency.
E)   the unit of wealth (gold, oil, diamonds, etc.)  upon which a nation bases its national currency.F) All of the above
G) B) and D)

Question 15

__________ is an international treaty intended to limit trade barriers and promote world trade through the reduction of tariffs.

Accepted Answer

A)   North Atlantic Treaty Organization (NATO) 
B)   General Agreement on Tariffs and Trade (GATT) 
C)   North American Free Trade Agreement (NAFT
A)  
D)   World Trade Association Treaty (WTAT) 
E)   United Nations Agreement on Trade (UNAT) F) A) and D)
G) A) and E)

Question 16

prescribed penalty for agents of foreign governments found guilty of economic espionage is

Accepted Answer

A)   up to 15 years in prison and fines up to $500,000.
B)   life in prison with chance of parole after 25 years.
C)   25 years in prison and a $10 million fine.
D)   permanent expulsion from the United States.
E)   30 years in prison and fines proportional to the damage caused.F) B) and E)
G) C) and D)

Question 17

trends in the past decade have significantly influenced the landscape of global marketing.One of them is:

Accepted Answer

A)   an increase in economic protectionism and a decline in free trade.
B)   a more aggressive attitude towards initiating international tariffs and quota systems.
C)   a decrease in most countries' GDPs and a renewal of nationalism.
D)   the formal economic integration and free trade among nations.
E)   an increase in most countries' GDPs coupled with an increased degree of consumer ethnocentrism.F) D) and E)
G) B) and E)

Question 18

Collaborative relationships are becoming a common way to meet the demands of global competition.Global __________ are agreements between two or more independent firms to cooperate for the purpose of achieving common goals such as a competitive advantage or customer value creation.

Accepted Answer

A)   compacts
B)   collaborative treaties
C)   strategic alliances
D)   free trade agreements
E)   economic coalitionsF) A) and B)
G) A) and C)

Question 19

Tiffany & Company knows that Japanese are superstitious about the number 4.As a result,Tiffany sells its fine glassware and china in sets of five,not four,in Japan.Tiffany has used its knowledge of __________ to avoid connecting its products with the number 4.

Accepted Answer

A)   trademarks
B)   visual icons
C)   cultural symbols
D)   brand names
E)   ethnic emblemsF) None of the above
G) A) and B)

Question 20

Economic infrastructure refers to

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 communication, 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)

Exam 7: Understanding and Reaching Global Consumers and Markets

are the market entry strategy options available to a company seeking to enter the global marketplace? How do they relate to each other in terms of profit potential,risk,financial commitment required,and marketing control?

Correct AnswerverifiedOnce a company has decided to enter the ...View AnswerShow Answer

Figure 7-5 -According to Figure 7-5 above,point "B" would most likely be __________.

Correct AnswerverifiedShow Answer

trends in the past decade have significantly influenced the landscape of global marketing.One of them is:

Correct AnswerverifiedShow Answer

currency exchange rate refers to

Correct AnswerverifiedShow Answer

McDonald's sells its popular Maharaja Mac that consists of two all-chicken patties,special sauce,lettuce,cheese,pickles,and onions on a sesame-seed bun in __________.

Correct AnswerverifiedShow Answer

Collaborative relationships are becoming a common way to meet the demands of global competition.Global __________ are agreements between two or more independent firms to cooperate for the purpose of achieving common goals such as a competitive advantage or customer value creation.

Correct AnswerverifiedShow Answer

EU has benefited its member nations because firms do not need to market their products and services on a nation-by-nation basis,most tariffs that affect pricing practices have been removed,and

Correct AnswerverifiedShow Answer

Personally or socially preferable modes of conduct or states of existence that tend to persist over time are referred to as __________.

Correct AnswerverifiedShow Answer

Competitive advantage for global firms grows out of continuous improvement,__________,and change.

Correct AnswerverifiedShow Answer

Tiffany & Company knows that Japanese are superstitious about the number 4.As a result,Tiffany sells its fine glassware and china in sets of five,not four,in Japan.Tiffany has used its knowledge of __________ to avoid connecting its products with the number 4.

Correct AnswerverifiedShow Answer

prescribed penalty for agents of foreign governments found guilty of economic espionage is

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Although there are many factors contributing to the success of major global marketers,a common theme seems to be that they

Correct AnswerverifiedShow Answer

Economic infrastructure refers to

Correct AnswerverifiedShow Answer

PRS group maintains a website that can be used to determine

Correct AnswerverifiedShow Answer

__________ is an international treaty intended to limit trade barriers and promote world trade through the reduction of tariffs.

Correct AnswerverifiedShow Answer

Another term for a gray market is

Correct AnswerverifiedShow Answer

Figure 7-2 -According to Michael Porter's diamond in Figure 7-2 above,quadrant "A" represents

Correct AnswerverifiedShow Answer

Customs refer to

Correct AnswerverifiedShow Answer

Countertrade refers to

Correct AnswerverifiedShow Answer

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