Question 1

The stage in which multinationals set up foreign subsidiaries to handle sales in one country is the _______________ in developing a global business.

Accepted Answer

A)   first stage
B)   second stage
C)   third stage
D)   fourth stageE) None of the above
F) A) and B)

Question 2

The Group of Twenty (G-20)was founded in 1945,one year after the creation of the World Bank,to promote trade through financial cooperation and eliminate trade barriers in the process.

Accepted Answer

A) True 
 B)False

Question 3

Average family incomes are higher in more developed countries than in less developed countries.

Accepted Answer

A) True 
 B)False

Question 4

A business that requires a greater expenditure for equipment than for labor is called:

Accepted Answer

A)   capital intensive.
B)   labor intensive.
C)   market intensive.
D)   production intensive.E) All of the above
F) B) and C)

Question 5

Explain the role of the Internet in global marketing and how old brick-and-mortar rules restrain the global economy.

Accepted Answer

Answers will vary.In many respects,going...

Question 6

Melrow Inc.,a U.S.firm,suffers heavy losses and lays off many of its employees.To reduce its manufacturing costs,it shifts its production units to another country where labor costs are less.In this scenario,Melrow Inc.is engaged in _____.

Accepted Answer

A)   licensing
B)   outsourcing
C)   franchising
D)   inshoringE) None of the above
F) B) and C)

Question 7

Which of the following statements is not correct about multinational companies

Accepted Answer

A)   They possess and can transfer the most up-to-date technology.
B)   Multinational companies employ a small proportion of the labor force with increasingly capital-intensive technologies.
C)   Multinationals may not substantially increase employment in developing nations.
D)   Multinational companies have low income levels.E) A) and B)
F) A) and C)

Question 8

The owners of Vogue,an apparel store based in California,want to expand the store's business all over the world.In this case,which of the following strategies can help the owners of Vogue achieve their objectives?

Accepted Answer

A)   Opening an e-commerce site
B)   Standardizing the size of apparel
C)   Acting as an export broker
D)   vending in physical stores.E) B) and C)
F) C) and D)

Question 9

Which of the following is/are the benefits of outsourcing?

Accepted Answer

A)   Cost saving
B)   Corporate growth
C)   Increase in productivity and revenue growth
D)   All of these are correctE) B) and D)
F) A) and D) D

Question 10

Traditionally,companies utilizing a multidomestic strategy enable individual subsidiaries to compete independently in domestic markets.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following is a characteristic of market grouping?

Accepted Answer

A)   It occurs when government efforts stifle imports or investment by foreign corporations.
B)   It occurs when several countries agree to work together to form a common trade area.
C)   It occurs when a trade agreement dramatically lowers trade barriers across the world.
D)   It occurs when a domestic firm joins with a foreign company to create a new entity.E) All of the above
F) None of the above

Question 12

Which statement is true of natural resources in terms of global trade or a country's economy?

Accepted Answer

A)   The past decade has witnessed the discovery of an abundance of natural resources.
B)   Petroleum is the only natural resource that affects international marketing.
C)   Vast differences in natural resources result in minor shifts of wealth among countries.
D)   Steep declines in the price of oil had a negative impact on America's oil producers.E) A) and B)
F) B) and D)

Question 13

_____ is a trade agreement that has dramatically lowered trade barriers worldwide and that led to the creation of the World Trade Organization.

Accepted Answer

A)   The European Agreement
B)   General Agreement on Tariffs and Trade
C)   The North American Free Trade Agreement
D)   The Uruguay RoundE) A) and B)
F) All of the above

Question 14

A company is doomed to failure in a foreign country if it _____.

Accepted Answer

A)   does not understand the foreign country's culture
B)   focuses on translating product names to the foreign country's language
C)   varies its marketing mix according to the foreign customers
D)   pays attention to the foreign country's demographicsE) A) and B)
F) A) and C)

Question 15

Which of the following is NOT a factor of external environment?

Accepted Answer

A)   Culture of a country
B)   Global economy
C)   Demographics
D)   Human resources of the organizationE) B) and D)
F) B) and C)

Question 16

Which of the following companies is in the first stage of developing a global business?

Accepted Answer

A)   The Footwear Corp.,which manufactures shoes and boots in a small town in Lucitona,sells its products to several countries around the world.
B)   Laelle Inc.is based in Euphonia and has set up several subsidiaries to manage its business in another country
C)   Fournotts Bros.,which is based in Datford,is opening a new line of business in a neighboring country.
D)   Rues and West Inc.operated in Yucatan,is operating an entire line of business in another country.E) None of the above
F) A) and B)

Question 17

_____ was founded in 1945,one year after the creation of the World Bank,to promote trade through financial cooperation and eliminate trade barriers in the process.

Accepted Answer

A)   The European Union (EU) 
B)   The World Trade Organization (WTO) 
C)   The North American Free Trade Agreement (NAFT
A)  
D)   The International Monetary Fund (IMF) E) A) and B)
F) A) and C)

Question 18

The ability of multinationals to tap financial,physical,and human resources from all over the world and combine them economically and profitably can benefit any country.

Accepted Answer

A) True 
 B)False  True

Question 19

Which of the following could be a motive for a company going global?

Accepted Answer

A)   It can earn additional profits.
B)   It has a unique product or technological advantage not available to other international competitors.
C)   Management may have exclusive market information about foreign customers.
D)   All of theseE) B) and C)
F) A) and B)

Question 20

Which of the following statements is true of the term quota?

Accepted Answer

A)   It refers to a limit on the amount of a specific product that can enter a country.
B)   It refers to the exclusion of all products from certain countries or companies.
C)   It refers to a tax levied on the goods entering a country.
D)   It refers to an agreement to stimulate international trade.E) A) and C)
F) None of the above A

Exam 5: Developing a Global Vision

The stage in which multinationals set up foreign subsidiaries to handle sales in one country is the _______________ in developing a global business.

Correct AnswerverifiedShow Answer

The Group of Twenty (G-20)was founded in 1945,one year after the creation of the World Bank,to promote trade through financial cooperation and eliminate trade barriers in the process.

Correct AnswerverifiedShow Answer

Average family incomes are higher in more developed countries than in less developed countries.

Correct AnswerverifiedShow Answer

A business that requires a greater expenditure for equipment than for labor is called:

Correct AnswerverifiedShow Answer

Explain the role of the Internet in global marketing and how old brick-and-mortar rules restrain the global economy.

Correct AnswerverifiedAnswers will vary.In many respects,going...View AnswerShow Answer

Melrow Inc.,a U.S.firm,suffers heavy losses and lays off many of its employees.To reduce its manufacturing costs,it shifts its production units to another country where labor costs are less.In this scenario,Melrow Inc.is engaged in _____.

Correct AnswerverifiedShow Answer

Which of the following statements is not correct about multinational companies

Correct AnswerverifiedShow Answer

The owners of Vogue,an apparel store based in California,want to expand the store's business all over the world.In this case,which of the following strategies can help the owners of Vogue achieve their objectives?

Correct AnswerverifiedShow Answer

Which of the following is/are the benefits of outsourcing?

Correct AnswerverifiedD

Traditionally,companies utilizing a multidomestic strategy enable individual subsidiaries to compete independently in domestic markets.

Correct AnswerverifiedShow Answer

Which of the following is a characteristic of market grouping?

Correct AnswerverifiedShow Answer

Which statement is true of natural resources in terms of global trade or a country's economy?

Correct AnswerverifiedShow Answer

_____ is a trade agreement that has dramatically lowered trade barriers worldwide and that led to the creation of the World Trade Organization.

Correct AnswerverifiedShow Answer

A company is doomed to failure in a foreign country if it _____.

Correct AnswerverifiedShow Answer

Which of the following is NOT a factor of external environment?

Correct AnswerverifiedShow Answer

Which of the following companies is in the first stage of developing a global business?

Correct AnswerverifiedShow Answer

_____ was founded in 1945,one year after the creation of the World Bank,to promote trade through financial cooperation and eliminate trade barriers in the process.

Correct AnswerverifiedShow Answer

The ability of multinationals to tap financial,physical,and human resources from all over the world and combine them economically and profitably can benefit any country.

Correct AnswerverifiedTrue

Which of the following could be a motive for a company going global?

Correct AnswerverifiedShow Answer

Which of the following statements is true of the term quota?

Correct AnswerverifiedA

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