Question 1

Which of the following is most accurate in regards to the Asian Free Trade agreements?

Accepted Answer

A)  Efforts to liberalize trade in East Asia are growing.
B)  Asian Free Trade Agreements are more formal than those of the EU and NAFTA.
C)  Asian Free Trade Agreements are based on ethnicity rather than geographical borders.
D)  Asian Free Trade Agreements encourage the formation of multinational corporations.
E)  Asian Free Trade Agreements recently include India and China.F) A) and D)
G) A) and C)

Question 2

The clandestine collection of trade secrets or proprietary information about a company's competitors is referred to as

Accepted Answer

A)  trade piracy.
B)  transnational fraud.
C)  economic espionage.
D)  competitive duplicity.
E)  transnational espionage.F) A) and E)
G) A) and B)

Question 3

In terms of the global marketplace,there are three primary types of companies: __________,multinational firms,and transnational firms.

Accepted Answer

A)  worldwide
B)  conglomerate
C)  intercontinental
D)  international
E)  cosmopolitanF) A) and D)
G) B) and D)

Question 4

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) A) and E)
G) A) and B)

Question 5

The U.S.motorcycle manufacturer Harley-Davidson uses intermediaries to sell its motorcycles in numerous nations outside the United States.Harley-Davidson uses

Accepted Answer

A)  direct exporting.
B)  licensing.
C)  contract manufacturing.
D)  indirect exporting.
E)  foreign assembly.F) C) and D)
G) A) and E)

Question 6

Which of the following statements about global brands is most accurate?

Accepted Answer

A)  A global brand is marketed under different names but uses identical ads for all markets.
B)  A global brand alters the product formulation or service for each geographical region.
C)  A global brand has centrally coordinated marketing programs.
D)  A global brand delivers multiple benefits based on the GDP of each country.
E)  A global brand is a collaborative effort among several different national firms.F) A) and D)
G) A) and E)

Question 7

An assessment of a country's or region's political-regulatory climate includes an analysis of its political stability and __________.

Accepted Answer

A)  economic infrastructure
B)  stock market performance
C)  trade regulations
D)  cultural diversity
E)  currency exchange ratesF) D) and E)
G) A) and B)

Question 8

A quota refers to

Accepted Answer

A)  a government tax on products or services entering a country that primarily serves to raise prices on imports.
B)  government payments to companies or industries that serve to lower costs and provide a competitive advantage to domestic industries.
C)  a restriction placed on the amount of a product allowed to enter or leave a country.
D)  a minimum requirement for the purchase of specific products or services between two nations.
E)  a refusal to purchase or exchange products or services with another nation unless certain financial or ideological requirements have been satisfied.F) D) and E)
G) B) and E)

Question 9

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) A) and E)
G) C) and E)

Question 10

Explain the difference between joint venture and direct investment market entry strategies.What are the advantages and disadvantages of each approach?

Accepted Answer

When a foreign company and a local firm ...

Question 11

Canada has two official languages,which are

Accepted Answer

A)  English and Japanese.
B)  English and Spanish.
C)  English and French.
D)  English and Italian.
E)  English and German.F) C) and D)
G) B) and E)

Question 12

When firms originate,produce,and market their products and services worldwide,it is referred to as __________.

Accepted Answer

A)  acculturation
B)  free trade
C)  global branding
D)  global competition
E)  transactional exchangeF) All of the above
G) C) and D)

Question 13

World trade flows to and from the United States reflect __________ for products and services among nations and industries.

Accepted Answer

A)  demand and supply interdependencies
B)  disparities between supply and demand
C)  positive and negative synergistic trade
D)  a negative currency exchange
E)  an ethnocentric biasF) A) and C)
G) B) and E)

Question 14

A form of low-risk and capital-free entry into international markets that includes local manufacturing is referred to as

Accepted Answer

A)  indirect exporting.
B)  direct ownership.
C)  joint ventures.
D)  licensing.
E)  direct exporting.F) B) and C)
G) None of the above

Question 15

Global companies have five strategies for matching products and their promotion efforts to global markets.According to Figure 7-6 above,"D" refers to which type of strategy?

Accepted Answer

A)  product extension strategy
B)  product adaptation strategy
C)  dual adaptation strategy
D)  product invention strategy
E)  communication adaptation strategyF) D) and E)
G) A) and D)

Question 16

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) A) and E)
G) D) and E)

Question 17

Which of the following examples BEST DEMONSTRATES a company's appreciation of another country's values?

Accepted Answer

A)  American companies in Germany encouraging the use of all types of credit cards.
B)  In Brazil,American companies are extremely careful to keep to a strict agenda and time schedule,even though an informal structure is preferred.
C)  Bath products are advertised by portraying intimate scenes between husbands and wives in countries where personal privacy is important.
D)  McDonald's restaurants in India serve a full line of products except for hamburgers made from beef.
E)  Vogue Italia publishing a feature with a model wearing "slave earrings," which it said were "worn by women of color during the slave trade."F) A) and B)
G) A) and C)

Question 18

In terms of the global marketplace,there are three primary types of companies: international firms,__________ firms,and transnational firms.

Accepted Answer

A)  large-scale
B)  conglomerate
C)  intercontinental
D)  cosmopolitan
E)  multinationalF) A) and E)
G) A) and B)

Question 19

Yum! Brands,the parent company of KFC,has pursued an aggressive growth strategy in China.There are now than 3,700 restaurants in 650 Chinese cities,and KFC has a 40% market share of the entire fast-food industry there.Yum! Brands China owns and directly manages about 90% of its Chinese stores,so it appears that the company prefers __________ in this market.

Accepted Answer

A)  licensing
B)  local assembly
C)  a joint venture
D)  direct investment
E)  local manufacturingF) A) and D)
G) B) and E)

Question 20

Which of the following statements about the World Trade Organization (WTO) is most accurate?

Accepted Answer

A)  The WTO is an institution that sets rules governing trade between its members.
B)  The WTO acts as an agent in trade negotiations between its members and the remainder of the world.
C)  The 183 member countries of the WTO account for approximately 55 percent of world trade.
D)  The WTO uses panels of trade experts who issue non-binding recommendations.
E)  The WTO was formed by the United Nations.F) D) and E)
G) C) and D)

Exam 7: Understanding and Reaching Global Consumers and Markets

A form of low-risk and capital-free entry into international markets that includes local manufacturing is referred to as

Correct Answer
verified

When firms originate,produce,and market their products and services worldwide,it is referred to as __________.

Correct Answer
verified

A quota refers to

Correct Answer
verified

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

Correct Answer
verified

Explain the difference between joint venture and direct investment market entry strategies.What are the advantages and disadvantages of each approach?

Correct Answer
verified
When a foreign company and a local firm ...
View Answer

Correct Answer
verified

The U.S.motorcycle manufacturer Harley-Davidson uses intermediaries to sell its motorcycles in numerous nations outside the United States.Harley-Davidson uses

Correct Answer
verified

In terms of the global marketplace,there are three primary types of companies: __________,multinational firms,and transnational firms.

Correct Answer
verified

Global companies have five strategies for matching products and their promotion efforts to global markets.According to Figure 7-6 above,"D" refers to which type of strategy?

Correct Answer
verified

Which of the following examples BEST DEMONSTRATES a company's appreciation of another country's values?

Correct Answer
verified

The clandestine collection of trade secrets or proprietary information about a company's competitors is referred to as

Correct Answer
verified

Correct Answer
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Countertrade refers to

Correct Answer
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Canada has two official languages,which are

Correct Answer
verified

Which of the following statements about global brands is most accurate?

Correct Answer
verified

In terms of the global marketplace,there are three primary types of companies: international firms,__________ firms,and transnational firms.

Correct Answer
verified

Which of the following is most accurate in regards to the Asian Free Trade agreements?

Correct Answer
verified

Which of the following statements about the World Trade Organization (WTO) is most accurate?

Correct Answer
verified

World trade flows to and from the United States reflect __________ for products and services among nations and industries.

Correct Answer
verified

An assessment of a country's or region's political-regulatory climate includes an analysis of its political stability and __________.

Correct Answer
verified

Exam 7: Understanding and Reaching Global Consumers and Markets

A form of low-risk and capital-free entry into international markets that includes local manufacturing is referred to as

Correct AnswerverifiedShow Answer

When firms originate,produce,and market their products and services worldwide,it is referred to as __________.

Correct AnswerverifiedShow Answer

A quota refers to

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Explain the difference between joint venture and direct investment market entry strategies.What are the advantages and disadvantages of each approach?

Correct AnswerverifiedWhen a foreign company and a local firm ...View AnswerShow Answer

Correct AnswerverifiedShow Answer

The U.S.motorcycle manufacturer Harley-Davidson uses intermediaries to sell its motorcycles in numerous nations outside the United States.Harley-Davidson uses

Correct AnswerverifiedShow Answer

In terms of the global marketplace,there are three primary types of companies: __________,multinational firms,and transnational firms.

Correct AnswerverifiedShow Answer

Global companies have five strategies for matching products and their promotion efforts to global markets.According to Figure 7-6 above,"D" refers to which type of strategy?

Correct AnswerverifiedShow Answer

Which of the following examples BEST DEMONSTRATES a company's appreciation of another country's values?

Correct AnswerverifiedShow Answer

The clandestine collection of trade secrets or proprietary information about a company's competitors is referred to as

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Countertrade refers to

Correct AnswerverifiedShow Answer

Canada has two official languages,which are

Correct AnswerverifiedShow Answer

Which of the following statements about global brands is most accurate?

Correct AnswerverifiedShow Answer

In terms of the global marketplace,there are three primary types of companies: international firms,__________ firms,and transnational firms.

Correct AnswerverifiedShow Answer

Which of the following is most accurate in regards to the Asian Free Trade agreements?

Correct AnswerverifiedShow Answer

Which of the following statements about the World Trade Organization (WTO) is most accurate?

Correct AnswerverifiedShow Answer

World trade flows to and from the United States reflect __________ for products and services among nations and industries.

Correct AnswerverifiedShow Answer

An assessment of a country's or region's political-regulatory climate includes an analysis of its political stability and __________.

Correct AnswerverifiedShow Answer

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When a foreign company and a local firm ...
View Answer

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