Question 1

Which of the following is an advantage inherent in the use of licensing?

Accepted Answer

A)   The foreign country gains employment.
B)   There is an exemption from domestic trade regulations.
C)   There is an increase in potential profit gains.
D)   The licensee retains control of its product.
E)   The licensee is protected from creating a potential competitor.F) B) and E)
G) A) and D)

Question 2

Which of the following statements reflects Michael Porter's theory regarding national competitive advantage?

Accepted Answer

A)   Clusters of strong suppliers can interfere with entry into a global market.
B)   A firm that succeeds in global markets has often left a domestic market because it was too competitive.
C)   A country's natural resources, education, and infrastructure can represent obstacles that are often difficult to overcome.
D)   Conditions such as the number and sophistication of domestic customers can affect demand for an industry's product.
E)   A nation's domestic workforce is more motivated to work for foreign corporations than its own.F) B) and C)
G) C) and E)

Question 3

Discuss licensing.Define it,give the advantages and disadvantages,and explain what contract manufacturing,contract assembly,and franchising are.

Accepted Answer

Licensing offers the right to a company ...

Question 4

North American Free Trade Agreement was designed to encourage free trade between

Accepted Answer

A)   North America, Central America, and South America.
B)   the United States, Canada, and Mexico.
C)   the United States and the European Union.
D)   member countries originally from NATO (North Atlantic Treaty Organization) .
E)   North America and The Commonwealth of Independent States.F) A) and C)
G) A) and B)

Question 5

out of every 10 diamonds sold in the world pass through India,making diamonds that country's largest export at $6.6 billion a year.One of the reasons for its success is the nation's 2,500 trading firms,banks,airlines,customers' offices,and courier services that make sure the diamonds are safely delivered.According to Michael Porter's theory about national competitive advantage,India's success in the diamond industry is due in part to its

Accepted Answer

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

Question 6

disadvantage of a joint venture arrangement when entering a new global market is that

Accepted Answer

A)   no intermediaries are used to distribute the product.
B)   the first entering the foreign marketing must pay royalties to the host firm.
C)   one of the companies forgoes control over its product.
D)   when the two companies disagree about policies.
E)   this method has the least amount of subsidies from the host country's government.F) All of the above
G) A) and B)

Question 7

Indirect exporting occurs when a firm sells its domestically produced goods in a foreign country

Accepted Answer

A)   in violation of a quota.
B)   without paying import tariffs.
C)   without paying export duties.
D)   through an intermediary.
E)   through a joint venture.F) A) and E)
G) C) and E)

Question 8

European Union is an economic and political union of __________ member countries located primarily in Europe that have eliminated most barriers to the free flow of goods,services,capital,and labor across their borders.

Accepted Answer

A)   17
B)   20
C)   27
D)   30
E)   37F) None of the above
G) C) and D)

Question 9

President Bill Clinton attempted to protect American firms from foreign competition by placing a government tax on Japanese automobiles imported to the United States.President Clinton's goal was to raise the price on Japanese imports,thereby encouraging American consumers to purchase American-made automobiles.The tax the president threatened to impose is an example of a __________.

Accepted Answer

A)   boycott
B)   tariff
C)   quota
D)   sanction
E)   subsidyF) C) and D)
G) None of the above

Question 10

Which of the following countries is the world's leading importer?

Accepted Answer

A)   United States
B)   China
C)   India
D)   Germany
E)   JapanF) B) and C)
G) A) and D)

Question 11

Foreign countries with very low per capita incomes may,nonetheless,be attractive markets for expensive goods.To get a more accurate picture of a country's purchasing power,a country's __________ must also be considered.

Accepted Answer

A)   total income
B)   total area
C)   geographical location
D)   culture
E)   income distributionF) D) and E)
G) None of the above

Question 12

four largest exporters to the United States are

Accepted Answer

A)   Canada, China, Japan, and Mexico.
B)   Japan, Germany, Brazil, and Canada.
C)   China, Brazil, Japan, and Germany.
D)   Mexico, Argentina, Brazil, and Venezuela.
E)   England, Canada, Australia, and New Zealand.F) C) and E)
G) D) and E)

Question 13

Exporting refers to a global market-entry strategy

Accepted Answer

A)   in which a company will sell its products in international markets but not in its own domestic market.
B)   in which a company produces goods in one country and sells them in another country.
C)   in which a company will manufacture its product in several countries at the same time using different brand names and slight product modifications.
D)   in which a company will manufacture products specifically designed for non-domestic markets, but will sell those products to distributors who take title and resell the products to different companies around the world.
E)   whereby a product is made in one country, assembled in a second country, and ultimately marketed to a third country.F) D) and E)
G) B) and E)

Question 14

Figure 7-7
-Figure 7-7 above outlines the distribution channels through which a product manufactured in one country must travel to reach its destination in another country."C" represents the

Accepted Answer

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

Question 15

Figure 7-6
-Global companies have five strategies for matching products and their promotion efforts to global markets.According to Figure 7-6 above,"E" 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) All of the above

Question 16

Global companies have five strategies for matching products and their promotion efforts to global markets.Designing a product to serve the unmet needs of a foreign nation is which type of product strategy?

Accepted Answer

A)   product extension
B)   product customization
C)   product adaptation
D)   product invention
E)   product integrationF) All of the above
G) A) and E)

Question 17

Figure 7-5
-According to Figure 7-5 above,points "B" and "C" would most likely be __________ and __________ respectively.

Accepted Answer

A)   exporting; licensing
B)   licensing; joint venture
C)   joint venture; direct investment
D)   exporting; direct investment
E)   exporting; joint ventureF) A) and E)
G) All of the above

Question 18

three types of companies that populate and compete in the global marketplace are international firms,__________ firms,and transnational firms.

Accepted Answer

A)   multiethnic
B)   domestic
C)   multinational
D)   ethnocentric
E)   decentralizedF) D) and E)
G) B) and E)

Question 19

three types of companies populate and compete in the global marketplace are (1) international firms; (2) multinational firms; and (3) __________ firms.

Accepted Answer

A)   multiethnic
B)   transnational
C)   multidomestic
D)   ethnocentric
E)   meganationalF) All of the above
G) B) and C)

Question 20

Beginning January 1,2005,China lifted the import quotas and lowered tariffs on automobiles.This removal of the quotas and the lowering of tariffs is an example of

Accepted Answer

A)   relaxing the rule of eminent domain.
B)   reducing ethnocentrism.
C)   enhancing domestic imperialism.
D)   reducing protectionism.
E)   enhancing countertrade.F) A) and E)
G) B) and D)

Exam 7: Understanding and Reaching Global Consumers and Markets

three types of companies that populate and compete in the global marketplace are international firms,__________ firms,and transnational firms.

Correct Answer
verified

Beginning January 1,2005,China lifted the import quotas and lowered tariffs on automobiles.This removal of the quotas and the lowering of tariffs is an example of

Correct Answer
verified

Which of the following statements reflects Michael Porter's theory regarding national competitive advantage?

Correct Answer
verified

Figure 7-7 -Figure 7-7 above outlines the distribution channels through which a product manufactured in one country must travel to reach its destination in another country."C" represents the

Correct Answer
verified

Figure 7-5 -According to Figure 7-5 above,points "B" and "C" would most likely be and respectively.

Correct Answer
verified

North American Free Trade Agreement was designed to encourage free trade between

Correct Answer
verified

Which of the following countries is the world's leading importer?

Correct Answer
verified

Global companies have five strategies for matching products and their promotion efforts to global markets.Designing a product to serve the unmet needs of a foreign nation is which type of product strategy?

Correct Answer
verified

Indirect exporting occurs when a firm sells its domestically produced goods in a foreign country

Correct Answer
verified

Which of the following is an advantage inherent in the use of licensing?

Correct Answer
verified

Correct Answer
verified

European Union is an economic and political union of __________ member countries located primarily in Europe that have eliminated most barriers to the free flow of goods,services,capital,and labor across their borders.

Correct Answer
verified

Foreign countries with very low per capita incomes may,nonetheless,be attractive markets for expensive goods.To get a more accurate picture of a country's purchasing power,a country's __________ must also be considered.

Correct Answer
verified

four largest exporters to the United States are

Correct Answer
verified

Correct Answer
verified

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

Correct Answer
verified

disadvantage of a joint venture arrangement when entering a new global market is that

Correct Answer
verified

three types of companies populate and compete in the global marketplace are (1) international firms; (2) multinational firms; and (3) __________ firms.

Correct Answer
verified

Exporting refers to a global market-entry strategy

Correct Answer
verified

Discuss licensing.Define it,give the advantages and disadvantages,and explain what contract manufacturing,contract assembly,and franchising are.

Correct Answer
verified
Licensing offers the right to a company ...
View Answer

Exam 7: Understanding and Reaching Global Consumers and Markets

three types of companies that populate and compete in the global marketplace are international firms,__________ firms,and transnational firms.

Correct AnswerverifiedShow Answer

Beginning January 1,2005,China lifted the import quotas and lowered tariffs on automobiles.This removal of the quotas and the lowering of tariffs is an example of

Correct AnswerverifiedShow Answer

Which of the following statements reflects Michael Porter's theory regarding national competitive advantage?

Correct AnswerverifiedShow Answer

Figure 7-7 -Figure 7-7 above outlines the distribution channels through which a product manufactured in one country must travel to reach its destination in another country."C" represents the

Correct AnswerverifiedShow Answer

Figure 7-5 -According to Figure 7-5 above,points "B" and "C" would most likely be __________ and __________ respectively.

Correct AnswerverifiedShow Answer

North American Free Trade Agreement was designed to encourage free trade between

Correct AnswerverifiedShow Answer

Which of the following countries is the world's leading importer?

Correct AnswerverifiedShow Answer

Global companies have five strategies for matching products and their promotion efforts to global markets.Designing a product to serve the unmet needs of a foreign nation is which type of product strategy?

Correct AnswerverifiedShow Answer

Indirect exporting occurs when a firm sells its domestically produced goods in a foreign country

Correct AnswerverifiedShow Answer

Which of the following is an advantage inherent in the use of licensing?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

European Union is an economic and political union of __________ member countries located primarily in Europe that have eliminated most barriers to the free flow of goods,services,capital,and labor across their borders.

Correct AnswerverifiedShow Answer

Foreign countries with very low per capita incomes may,nonetheless,be attractive markets for expensive goods.To get a more accurate picture of a country's purchasing power,a country's __________ must also be considered.

Correct AnswerverifiedShow Answer

four largest exporters to the United States are

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

disadvantage of a joint venture arrangement when entering a new global market is that

Correct AnswerverifiedShow Answer

three types of companies populate and compete in the global marketplace are (1) international firms; (2) multinational firms; and (3) __________ firms.

Correct AnswerverifiedShow Answer

Exporting refers to a global market-entry strategy

Correct AnswerverifiedShow Answer

Discuss licensing.Define it,give the advantages and disadvantages,and explain what contract manufacturing,contract assembly,and franchising are.

Correct AnswerverifiedLicensing offers the right to a company ...View AnswerShow Answer

Correct Answer
verified

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Figure 7-5 -According to Figure 7-5 above,points "B" and "C" would most likely be and respectively.

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
verified
Licensing offers the right to a company ...
View Answer