Question 1

The company that makes Breathe-Right nasal strips sells the same product in other countries.This is an example of which type of international product strategy?

Accepted Answer

A)  product adaptation
B)  product customization
C)  product extension
D)  product invention
E)  product integrationF) A) and E)
G) B) and D)

Question 2

Gray market refers to

Accepted Answer

A)  the segment of products specifically designed for the need of older buyers.
B)  a situation where products are sold through unauthorized channels of distribution.
C)  a once active and powerful market that is rapidly becoming the bottom of the barrel.
D)  a pricing structure that is based upon "not-quite-clear" price negotiations or "haggling" that is considered acceptable in some countries but not others.
E)  the willingness of one party to accept "gifts" in exchange for better prices or price allowances.F) A) and E)
G) C) and D)

Question 3

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

Accepted Answer

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

Question 4

Give at least one argument for and one argument against protectionism.

Accepted Answer

People who favor protectionism believe t...

Question 5

Indirect exporting refers to

Accepted Answer

A)  offering the right to a trademark, patent, trade secret, or similarly valued item of intellectual property in return for a royalty or fee.
B)  contracting with a foreign firm to manufacture products according to stated specifications.
C)  the combined investment of a foreign country and a local firm to create a local business.
D)  when a firm sells its domestically-produced goods in a foreign country through an intermediary.
E)  when a firm sells its domestically-produced goods in a foreign country without intermediaries.F) A) and E)
G) None of the above

Question 6

A joint venture refers to

Accepted Answer

A)  offering the right to a trademark, patent, trade secret, or similarly valued items of intellectual property in return for a royalty or fee.
B)  contracting with a foreign firm to manufacture products according to certain specifications.
C)  when a foreign company and a local firm invest together to create a local business.
D)  having a company handle its own exports directly, but using intermediaries for importing.
E)  exporting through an intermediary, which often has the knowledge and means to succeed in selling a firm's product abroad.F) A) and C)
G) A) and D)

Question 7

Tariffs refer to

Accepted Answer

A)  a reduction on or refusal to purchase goods from foreign nations with which a country has philosophical or ideological differences.
B)  government taxes on goods or services entering a country that primarily serve to raise prices on imports tariffs.
C)  a restriction placed on the amount of a product allowed to enter or leave a country.
D)  a minimum requirement for the purchase between two or more nations, of products or services.
E)  a refusal to purchase or exchange goods or services with another nation unless certain financial or ideological requirements have been satisfied.F) A) and B)
G) B) and E)

Question 8

A global market-entry strategy that entails a domestic firm actually investing in and owning a foreign subsidiary or division, is referred to as

Accepted Answer

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

Question 9

Global brand refers to

Accepted Answer

A)  two or more domestic products that coincidentally share the same brand name but represent two completely unrelated products or manufacturers.
B)  two or more international products that coincidentally share the same brand name but represent two completely unrelated products or manufacturers.
C)  a brand marketed under the same name in multiple countries with similar and centrally coordinated marketing programs.
D)  a product that is essentially the same, but that has had minor adaptations made to meet the more specific needs of different nations.
E)  a brand marketed under different names in multiple countries with similar and centrally coordinated marketing programs.F) A) and E)
G) None of the above

Question 10

Nescafé coffee is marketed using different coffee blends and promotional campaigns to match consumer preferences in different countries.For example Nescafé generally emphasizes the taste, aroma, and warmth of shared moments in its advertising around the world.However in Thailand Nescafé is advertised as a way to relax from the pressures of daily life.Nescafé is using which type of product strategy?

Accepted Answer

A)  product extension
B)  product customization
C)  product adaptation
D)  dual adaptation
E)  dual integrationF) B) and C)
G) C) and D)

Question 11

When a firm sells a product in a foreign country below its domestic price or below its actual cost it is referred to as

Accepted Answer

A)  dumping.
B)  surplus marketing.
C)  loss-leader pricing.
D)  second-market pricing.
E)  entrepreneurial pricing.F) B) and D)
G) B) and E)

Question 12

Cultural symbols refer to

Accepted Answer

A)  ideas that can be protected by international copyrights.
B)  ideas that cannot be expressed by words or characters.
C)  things that represent values that exist solely within a nation's boundaries.
D)  things that represent ideas and concepts in a specific culture.
E)  icons that consist of pictures or designs that represent ideas and concepts that are considered to be universal.F) None of the above
G) B) and E)

Question 13

Almost all countries have some division of social class.The determinant factor for assigning these classes may differ from country to country.For example, in the United States the primary determinant factor for assigning social class is occupation, in India it is birthright, in China it is geographical region and education, and in Singapore it is income.These differences are best explained in terms of a country's

Accepted Answer

A)  cultural mores.
B)  beliefs.
C)  customs.
D)  religion.
E)  values.F) B) and E)
G) A) and B)

Question 14

FIGURE 7-1 
-The orange box in Figure 7-1 above should read

Accepted Answer

A)  "increase world trade."
B)  "decrease world trade."
C)  "limit exports."
D)  "limit imports."
E)  "doubles protectionism."F) B) and D)
G) B) and C)

Question 15

Quota refers to

Accepted Answer

A)  a government tax on goods or services entering a country that primarily serves to raise prices on imports.
B)  a reduction on or refusal to purchase goods from foreign nations with which a country has philosophical or ideological differences.
C)  a restriction placed on the amount of a product allowed to enter or leave a country.
D)  a minimum requirement for the purchase between two or more nations, of products or services.
E)  a refusal to purchase or exchange goods or services with another nation unless certain financial or ideological requirements have been satisfied.F) B) and C)
G) B) and D)

Question 16

Both Honda and Toyota have plants in the U.S.that use American labor.This example is an illustration of Honda and Toyota practicing

Accepted Answer

A)  direct exporting.
B)  direct investment.
C)  joint venture.
D)  licensing.
E)  indirect exporting.F) A) and B)
G) B) and C)

Question 17

The study of similarities and differences among consumers in two or more nations or societies is referred to as __________.

Accepted Answer

A)  market synthesis
B)  cross-cultural analysis
C)  international sociographics
D)  transnational anthropology
E)  multicultural psychographicsF) A) and B)
G) A) and C)

Question 18

CAFTA-DR, a comprehensive free trade agreement between Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, Nicaragua, and __________.

Accepted Answer

A)  the United States
B)  Panama
C)  Belize
D)  Cuba
E)  the Canary IslandsF) A) and B)
G) C) and E)

Question 19

Explain the difference between a 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 20

Generally, as the proportion of middle-income households in a country increases, the nation's purchasing power __________.

Accepted Answer

A)  increases
B)  decreases
C)  levels off
D)  becomes less of an economic priority
E)  becomes progressively unstableF) C) and D)
G) None of the above

Exam 7: Understanding and Reaching Global Consumers and Markets

CAFTA-DR, a comprehensive free trade agreement between Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, Nicaragua, and __________.

Correct Answer
verified

Quota refers to

Correct Answer
verified

Cultural symbols refer to

Correct Answer
verified

Explain the difference between a 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

The study of similarities and differences among consumers in two or more nations or societies is referred to as __________.

Correct Answer
verified

FIGURE 7-1 -The orange box in Figure 7-1 above should read

Correct Answer
verified

The company that makes Breathe-Right nasal strips sells the same product in other countries.This is an example of which type of international product strategy?

Correct Answer
verified

Tariffs refer to

Correct Answer
verified

Both Honda and Toyota have plants in the U.S.that use American labor.This example is an illustration of Honda and Toyota practicing

Correct Answer
verified

Correct Answer
verified

Global brand refers to

Correct Answer
verified

When a firm sells a product in a foreign country below its domestic price or below its actual cost it is referred to as

Correct Answer
verified

Gray market refers to

Correct Answer
verified

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

Correct Answer
verified

Give at least one argument for and one argument against protectionism.

Correct Answer
verified
People who favor protectionism believe t...
View Answer

Indirect exporting refers to

Correct Answer
verified

A global market-entry strategy that entails a domestic firm actually investing in and owning a foreign subsidiary or division, is referred to as

Correct Answer
verified

Generally, as the proportion of middle-income households in a country increases, the nation's purchasing power __________.

Correct Answer
verified

Correct Answer
verified

A joint venture refers to

Correct Answer
verified

Exam 7: Understanding and Reaching Global Consumers and Markets

CAFTA-DR, a comprehensive free trade agreement between Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, Nicaragua, and __________.

Correct AnswerverifiedShow Answer

Quota refers to

Correct AnswerverifiedShow Answer

Cultural symbols refer to

Correct AnswerverifiedShow Answer

Explain the difference between a 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

The study of similarities and differences among consumers in two or more nations or societies is referred to as __________.

Correct AnswerverifiedShow Answer

FIGURE 7-1 -The orange box in Figure 7-1 above should read

Correct AnswerverifiedShow Answer

The company that makes Breathe-Right nasal strips sells the same product in other countries.This is an example of which type of international product strategy?

Correct AnswerverifiedShow Answer

Tariffs refer to

Correct AnswerverifiedShow Answer

Both Honda and Toyota have plants in the U.S.that use American labor.This example is an illustration of Honda and Toyota practicing

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Global brand refers to

Correct AnswerverifiedShow Answer

When a firm sells a product in a foreign country below its domestic price or below its actual cost it is referred to as

Correct AnswerverifiedShow Answer

Gray market refers to

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Give at least one argument for and one argument against protectionism.

Correct AnswerverifiedPeople who favor protectionism believe t...View AnswerShow Answer

Indirect exporting refers to

Correct AnswerverifiedShow Answer

A global market-entry strategy that entails a domestic firm actually investing in and owning a foreign subsidiary or division, is referred to as

Correct AnswerverifiedShow Answer

Generally, as the proportion of middle-income households in a country increases, the nation's purchasing power __________.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

A joint venture refers to

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
When a foreign company and a local firm ...
View 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
People who favor protectionism believe t...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified