Question 1

If Caterpillar wished to reach the market in Malaysia but was leery of a direct investment in the country, it might provide a Malaysian operation with the knowledge to produce and market its products in exchange for a commission. This type of arrangement is called

Accepted Answer

A)  licensing.
B)  exporting.
C)  a strategic alliance.
D)  a joint venture.
E)  contract manufacturing.F) B) and E)
G) C) and D)

Question 2

Organizations that employ standardized products, promotion campaigns, and prices for all markets are practicing what is known as

Accepted Answer

A)  customization.
B)  internationalization.
C)  globalization.
D)  regionalization.
E)  nationalization.F) All of the above
G) A) and B)

Question 3

Maquiladoras are

Accepted Answer

A)  exchange controls from central banks in Latin American countries.
B)  production facilities in north-central Mexican states.
C)  import-export agents of the Mexican government.
D)  global marketing programs established in Latin American countries.
E)  freight forwarders from Mexico.F) B) and D)
G) All of the above

Question 4

The United States' prohibition against importing cigars from Cuba is an example of a(n)

Accepted Answer

A)  health control.
B)  quota.
C)  embargo.
D)  exchange control.
E)  import control.F) A) and B)
G) None of the above

Question 5

Which of the following centralizes all of the responsibility for international operations?

Accepted Answer

A)  Product division structures
B)  Export department structures
C)  Internationally integrated structures
D)  International division structures
E)  Global matrix structuresF) A) and D)
G) A) and C)

Question 6

An embargo occurs when a government suspends trade with a particular country.

Accepted Answer

A) True 
 B)False

Question 7

Two-thirds of the world's total purchasing power is outside the United States.

Accepted Answer

A) True 
 B)False

Question 8

The Common Market of the Southern Cone (MERCOSUR)  includes

Accepted Answer

A)  countries from southern Africa.
B)  both India and Indonesia.
C)  Australia and New Zealand.
D)  countries in South America.
E)  southern China and India.F) A) and B)
G) A) and C)

Question 9

Which of the following trade alliances differs from others in its commitment to facilitating business and its practice of allowing the private sector to participate in a wide range of activities?

Accepted Answer

A)  NAFTA
B)  EU
C)  MERCOSUR
D)  WTO
E)  APECF) All of the above
G) B) and C)

Question 10

Johnston Chemicals' president is very excited about the possibility of the firm's British subsidiary having access to customers in the entire EU. He realizes that it will be some time before this area truly becomes one market, primarily because of differences in which of the following?

Accepted Answer

A)  Available advertising media
B)  Cultural factors
C)  Legal challenges
D)  Technological advances
E)  Economic environmental factorsF) A) and B)
G) A) and C)

Question 11

The unconscious reference to one's own cultural values, experiences, and knowledge when encountering new and different cultures is known as

Accepted Answer

A)  the "when-in-Rome" approach.
B)  the Fraedrich Principle.
C)  cultural relativism.
D)  the self-reference principle.
E)  the self-reference criterion.F) All of the above
G) A) and D)

Question 12

Swiss-based Nestlé has taken a global approach to marketing its chocolate products. Which of the following is most easily standardized?

Accepted Answer

A)  Product
B)  Promotion
C)  Distribution
D)  Advertising
E)  PriceF) None of the above
G) C) and E)

Question 13

When a firm's products sell in foreign countries with little or no effort to obtain foreign sales, the firm is engaging in

Accepted Answer

A)  international marketing.
B)  global marketing.
C)  limited exporting.
D)  product licensing.
E)  unplanned exporting.F) All of the above
G) A) and E)

Question 14

Once a company makes a long-term commitment to a foreign market that has a promising political and economic environment, which of the following options then emerges as a possibility?

Accepted Answer

A)  Exporting
B)  Joint venture
C)  Limited exporting
D)  Direct ownership
E)  LicensingF) D) and E)
G) A) and E)

Question 15

At the heart of the ____ are agreements that provide legal ground rules for international commerce and trade policy.

Accepted Answer

A)  United Nations
B)  GATT
C)  MERCOSUR
D)  WTO
E)  APECF) B) and D)
G) D) and E)

Question 16

A company not involved in manufacturing that brings together buyers and sellers in different countries is usually referred to as a

Accepted Answer

A)  franchise.
B)  contract manufacturer.
C)  strategic intermediary.
D)  trading company.
E)  joint venture.F) All of the above
G) A) and B)

Question 17

The gross domestic product is

Accepted Answer

A)  a measure of the profit made by all firms in a nation.
B)  the average annual earnings per person in a nation.
C)  a measure of the types of products produced by a nation.
D)  an overall measure of a nation's economic standing.
E)  a ratio of domestic products to products produced in foreign countries.F) B) and C)
G) A) and E)

Question 18

Because of continuing disputes and inconsistencies among the administrations of member states, it will be many years before the European Union truly becomes one deregulated market.

Accepted Answer

A) True 
 B)False

Question 19

When a glove manufacturer in China is allowed to sell only a certain number of plastic gloves into Japan, that firm is facing a(n)

Accepted Answer

A)  tariff.
B)  embargo.
C)  restrictive product standard.
D)  quota.
E)  balance of trade restriction.F) C) and D)
G) A) and B)

Question 20

A trading company provides a link between buyers and sellers in different countries.

Accepted Answer

A) True 
 B)False

Exam 9: Reaching Global Markets

Once a company makes a long-term commitment to a foreign market that has a promising political and economic environment, which of the following options then emerges as a possibility?

Correct AnswerverifiedShow Answer

Organizations that employ standardized products, promotion campaigns, and prices for all markets are practicing what is known as

Correct AnswerverifiedShow Answer

At the heart of the ____ are agreements that provide legal ground rules for international commerce and trade policy.

Correct AnswerverifiedShow Answer

A trading company provides a link between buyers and sellers in different countries.

Correct AnswerverifiedShow Answer

When a firm's products sell in foreign countries with little or no effort to obtain foreign sales, the firm is engaging in

Correct AnswerverifiedShow Answer

An embargo occurs when a government suspends trade with a particular country.

Correct AnswerverifiedShow Answer

If Caterpillar wished to reach the market in Malaysia but was leery of a direct investment in the country, it might provide a Malaysian operation with the knowledge to produce and market its products in exchange for a commission. This type of arrangement is called

Correct AnswerverifiedShow Answer

Maquiladoras are

Correct AnswerverifiedShow Answer

A company not involved in manufacturing that brings together buyers and sellers in different countries is usually referred to as a

Correct AnswerverifiedShow Answer

The gross domestic product is

Correct AnswerverifiedShow Answer

Because of continuing disputes and inconsistencies among the administrations of member states, it will be many years before the European Union truly becomes one deregulated market.

Correct AnswerverifiedShow Answer

The United States' prohibition against importing cigars from Cuba is an example of a(n)

Correct AnswerverifiedShow Answer

Which of the following trade alliances differs from others in its commitment to facilitating business and its practice of allowing the private sector to participate in a wide range of activities?

Correct AnswerverifiedShow Answer

Swiss-based Nestlé has taken a global approach to marketing its chocolate products. Which of the following is most easily standardized?

Correct AnswerverifiedShow Answer

When a glove manufacturer in China is allowed to sell only a certain number of plastic gloves into Japan, that firm is facing a(n)

Correct AnswerverifiedShow Answer

The Common Market of the Southern Cone (MERCOSUR) includes

Correct AnswerverifiedShow Answer

Two-thirds of the world's total purchasing power is outside the United States.

Correct AnswerverifiedShow Answer

Johnston Chemicals' president is very excited about the possibility of the firm's British subsidiary having access to customers in the entire EU. He realizes that it will be some time before this area truly becomes one market, primarily because of differences in which of the following?

Correct AnswerverifiedShow Answer

Which of the following centralizes all of the responsibility for international operations?

Correct AnswerverifiedShow Answer

The unconscious reference to one's own cultural values, experiences, and knowledge when encountering new and different cultures is known as

Correct AnswerverifiedShow Answer

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