Question 1

Which of the following denotes the example of more than 100 unique Pringles potato chip flavors having been invented for international markets?

Accepted Answer

A)   Product invention
B)   Promotion adaptation
C)   Product promotion
D)   Global marketing standardizationE) None of the above
F) A) and C)

Question 2

Which of the following correctly defines balance of payments?

Accepted Answer

A)   The difference between the value of a country's exports and the value of its imports over a given period
B)   The difference between a country's total payments to other countries and its total receipts from other countries
C)   Total market value of all final goods and services produced in a country for a given time period
D)   Total income estimated from returning production jobs to the United StatesE) C) and D)
F) A) and B)

Question 3

Which of the following is true about the different stages of business development of a multinational corporation?

Accepted Answer

A)   In the second stage,companies operate in one country and sell into others.
B)   In the third stage,multinationals operate an entire line of business in another country.
C)   The third stage has evolved primarily due to the Internet and involves mostly high-tech companies.
D)   The top executives and core corporate functions of a multinational corporation operate in the same country.E) None of the above
F) C) and D)

Question 4

Often small ventures are skeptical about entering the global market because it:

Accepted Answer

A)   limits access to advanced technologies in less developed countries.
B)   slows down the rate at which people's living standards increase.
C)   involves various trade laws or tariffs.
D)   empowers governments to abuse the freedom and property of their citizens.E) A) and B)
F) A) and D)

Question 5

Which of the following is true of outsourcing?

Accepted Answer

A)   It reduces corporate growth.
B)   It reduces productivity and revenue growth.
C)   It faces production delays due to faulty parts.
D)   It increases energy costs in the United States.E) B) and D)
F) A) and B)

Question 6

Which of the following statements is a characteristic of countertrade?

Accepted Answer

A)   It refers to a form of trade in which all or part of the payment for goods or services is in the form of other goods or services.
B)   It refers to the sale of an exported product at a price lower than that charged for the same or a like product in the "home" market of the exporter.
C)   It refers to the active ownership of a foreign company or of overseas manufacturing or marketing facilities.
D)   It refers to a system in which prices of different currencies move up and down based on the demand for and the supply of each currency.E) B) and D)
F) B) and C)

Question 7

Nessca Motors,a well-known company based in Nebolina,manufactures engines.Its management recently signed a joint venture with Singletone Inc.,a small company based in Trinitia.Of the following scenarios,which would be the most likely to happen?

Accepted Answer

A)   The government of Trinitia will restrict Nessca Motors's entry into the country.
B)   Nessca Motors and Singletone Inc.will switch to contract manufacturing as the next step.
C)   Nessca Motors will buy a part of Singletone Inc.
D)   Singletone Inc.will pay a royalty to Nessca Motors.E) C) and D)
F) B) and C)

Question 8

Which of the following eliminated the extensive loopholes of the General Agreement on Tariffs and Trade (GATT) ?

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) All of the above
F) A) and B)

Question 9

A U.S.licensor will be most successful at maintaining effective control over licensees and preventing them from voiding the contract by:

Accepted Answer

A)   using lawyers from both countries to write the licensing agreement.
B)   insisting that all licensees have a published code of ethics.
C)   receiving all the revenue earned by the licensees.
D)   locally registering patents and trademarks.E) B) and C)
F) None of the above

Question 10

Currency markets operate under a system of _____,which is a system in which the prices of different currencies move up or down based on the demand for and the supply of each currency.

Accepted Answer

A)   countertrade
B)   floating exchange rates
C)   dumping
D)   contract manufacturingE) None of the above
F) All of the above

Question 11

Which of the following is correct regarding the benefit of globalization?

Accepted Answer

A)   Decreases product and service quality
B)   Hampers economic freedom
C)   Access to global export markets and advanced technology
D)   Crushing competitionE) All of the above
F) A) and C)

Question 12

A tax levied on the goods entering a country is called:

Accepted Answer

A)   tariff.
B)   quota.
C)   exchange control.
D)   market control.E) None of the above
F) C) and D)

Question 13

An intermediary in the global market that assumes all ownership risks and sells globally for its own account is called _________.

Accepted Answer

A)   a buyer for export
B)   an export broker
C)   an export agent
D)   a direct exporterE) A) and B)
F) B) and D)

Question 14

Which of the following refers to private label manufacturing by a foreign company?

Accepted Answer

A)   Licensing
B)   Contract manufacturing
C)   Joint venture
D)   Direct foreign investmentE) B) and D)
F) A) and D)

Question 15

Which term describes a form of price discrimination that can potentially harm the importing nation's competing industries?

Accepted Answer

A)   Countertrade
B)   Trade barriers
C)   Free trade
D)   DumpingE) A) and B)
F) A) and C)

Question 16

Dumping has led to significant disagreements among countries and diverse views about its harmfulness.

Accepted Answer

A) True 
 B)False

Question 17

Which statement is true of global marketing standardization?

Accepted Answer

A)   Consumers worldwide don't want the same things.
B)   Companies utilizing global marketing standardization have different foreign market segments with different products.
C)   The markets throughout the world are becoming more alike.
D)   Companies must differentiate their offerings to satisfy different target markets.E) A) and B)
F) A) and D)

Question 18

The four Ps of global marketing strategy are product,place,promotion,and price.

Accepted Answer

A) True 
 B)False

Question 19

Using a capital-intensive technology refers to spending less money for equipment than labor in the production process.

Accepted Answer

A) True 
 B)False

Question 20

A global marketer or a firm considering global marketing must consider the external environment.

Accepted Answer

A) True 
 B)False

Exam 5: Developing a Global Vision

Which of the following is correct regarding the benefit of globalization?

Correct AnswerverifiedShow Answer

A U.S.licensor will be most successful at maintaining effective control over licensees and preventing them from voiding the contract by:

Correct AnswerverifiedShow Answer

A global marketer or a firm considering global marketing must consider the external environment.

Correct AnswerverifiedShow Answer

Which statement is true of global marketing standardization?

Correct AnswerverifiedShow Answer

An intermediary in the global market that assumes all ownership risks and sells globally for its own account is called _________.

Correct AnswerverifiedShow Answer

Which of the following statements is a characteristic of countertrade?

Correct AnswerverifiedShow Answer

Which of the following is true of outsourcing?

Correct AnswerverifiedShow Answer

Which of the following eliminated the extensive loopholes of the General Agreement on Tariffs and Trade (GATT) ?

Correct AnswerverifiedShow Answer

Which of the following denotes the example of more than 100 unique Pringles potato chip flavors having been invented for international markets?

Correct AnswerverifiedShow Answer

A tax levied on the goods entering a country is called:

Correct AnswerverifiedShow Answer

Which of the following refers to private label manufacturing by a foreign company?

Correct AnswerverifiedShow Answer

Currency markets operate under a system of _____,which is a system in which the prices of different currencies move up or down based on the demand for and the supply of each currency.

Correct AnswerverifiedShow Answer

The four Ps of global marketing strategy are product,place,promotion,and price.

Correct AnswerverifiedShow Answer

Which of the following correctly defines balance of payments?

Correct AnswerverifiedShow Answer

Nessca Motors,a well-known company based in Nebolina,manufactures engines.Its management recently signed a joint venture with Singletone Inc.,a small company based in Trinitia.Of the following scenarios,which would be the most likely to happen?

Correct AnswerverifiedShow Answer

Which term describes a form of price discrimination that can potentially harm the importing nation's competing industries?

Correct AnswerverifiedShow Answer

Which of the following is true about the different stages of business development of a multinational corporation?

Correct AnswerverifiedShow Answer

Using a capital-intensive technology refers to spending less money for equipment than labor in the production process.

Correct AnswerverifiedShow Answer

Dumping has led to significant disagreements among countries and diverse views about its harmfulness.

Correct AnswerverifiedShow Answer

Often small ventures are skeptical about entering the global market because it:

Correct AnswerverifiedShow Answer

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