Question 1

A(n)  _____ is an intermediary who brings a buyer and a seller together.

Accepted Answer

A)  licenser
B)  export broker
C)  contract manufacturer
D)  export merchantE) C) and D)
F) A) and B)

Question 2

Explain the legal structures that affect international trade.

Accepted Answer

Answers will vary. Many legal structures...

Question 3

Which of the following statements is true of inshoring and outsourcing?

Accepted Answer

A)  Inshoring occurs when multinational firms enable individual subsidiaries to compete independently in domestic markets, while outsourcing occurs when markets throughout the world become alike.
B)  Inshoring refers to a strategy of providing different product features, while outsourcing refers to a strategy of using a global vision to effectively market goods and services across national boundaries.
C)  Inshoring occurs when several countries agree to work together to form a common trade area, while outsourcing occurs when prices of different currencies ''float'' up and down based on demand.
D)  Inshoring refers to a strategy of returning production jobs to the United States, while outsourcing refers to a strategy of sending United States jobs to foreign countries.E) A) and B)
F) None of the above

Question 4

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 C)
F) A) and B)

Question 5

Sinesia is a country that has very few sources of potable water. Given this information, which of the following is most likely to happen?

Accepted Answer

A)  Sinesia's international marketing will remain unaffected because petroleum is the only factor that affects international marketing.
B)  Sinesia will remain an importer of foodstuffs.
C)  Sinesia will become an attractive target for military intervention.
D)  Sinesia's wealth will equal that of the countries with rich sources of water.E) A) and D)
F) A) and C)

Question 6

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

Accepted Answer

A)  It refers to a limit on the amount of a specific product that can enter a country.
B)  It refers to a tax levied on the goods entering a country.
C)  It refers to the exclusion of all products from certain countries or companies.
D)  It refers to an agreement to stimulate international trade.E) A) and D)
F) C) and D)

Question 7

Explain the four stages in which multinational corporations develop their businesses.

Accepted Answer

Answers will vary. A company that is hea...

Question 8

Which of the following is a difference between a joint venture and contract manufacturing?

Accepted Answer

A)  A joint venture is formed when a domestic firm buys part of a foreign company to create a new entity, while firms choose contract manufacturing to avoid being involved in licensing.
B)  A joint venture is formed when a domestic firm broadens its global marketing base without investment, while in contract manufacturing, a licensor allows another firm to use its manufacturing process.
C)  A joint venture is formed when several countries agree to work together to form a common trade area, while contract manufacturing occurs when government efforts stifle investment by foreign corporations.
D)  A joint venture is formed when an agreement to stimulate international trade is made, while contract manufacturing occurs when a tax is levied on the goods entering a country.E) B) and D)
F) C) and D) A

Question 9

Global marketing is a one-way street whereby only U.S. companies sell their wares and services throughout the world.

Accepted Answer

A) True 
 B)False

Question 10

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) A) and D)
F) B) and D)

Question 11

Which of the following is a factor that drives the popularity of imports in the United States?

Accepted Answer

A)  Lower wages compared to that of other countries
B)  Higher number of employees in the countries from where goods are imported
C)  Higher prices of products in the countries from where the goods are imported
D)  Lower capacity of the equipment used for production in the exporting countriesE) A) and B)
F) A) and C) A

Question 12

_____ is the largest Latin American trade agreement, and it includes Argentina, Bolivia, Brazil, Chile, Colombia, Ecuador, Paraguay, Peru, Uruguay, and Venezuela.

Accepted Answer

A)  Mercosur
B)  General Agreement on Tariffs and Trade (GATT) 
C)  The Uruguay Round
D)  The North American Free Trade Agreement (NAFT
A)  E) All of the above
F) B) and C)

Question 13

Because Facebook, YouTube, and other social media are popular around the world, firms both large and small have embraced social media marketing.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following statements is true of globalization?

Accepted Answer

A)  It expands economic freedom and increases the living standards of people.
B)  It increases prices and decreases product and service quality.
C)  It has curbed the growth of the middle class in developing countries.
D)  It leads to a monopoly of domestic producers.E) B) and D)
F) A) and C) A

Question 15

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

Accepted Answer

A)  D Feet Corp., which manufactures footwear in a small town in Lucitona and sells the footwear to several countries around the world
B)  Laelle Inc., which 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 and opens a new line of business in a neighboring country
D)  Rues and West Inc., which operates online shopping sites around the worldE) A) and B)
F) A) and C)

Question 16

Write a note on the economic factors that influence the external business environment.

Accepted Answer

Answers will vary. One of the major fact...

Question 17

The final step in creating a marketing mix is developing a thorough understanding of the global target market.

Accepted Answer

A) True 
 B)False

Question 18

In the context of distribution, ocean shipping is faster than airfreight.

Accepted Answer

A) True 
 B)False

Question 19

Opening an e-commerce site on the Internet makes it difficult for a company to gain recognition in the international marketplace.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following statements is true of a company that is in the second stage of global business?

Accepted Answer

A)  It maintains a virtual executive suite.
B)  It sets up foreign subsidiaries to handle sales in one country.
C)  It runs its business entirely through the Internet.
D)  It bases its entire operations in its home country.E) B) and C)
F) A) and D)

Exam 5: Developing a Global Vision

A(n) _____ is an intermediary who brings a buyer and a seller together.

Correct AnswerverifiedShow Answer

Explain the legal structures that affect international trade.

Correct AnswerverifiedAnswers will vary. Many legal structures...View AnswerShow Answer

Which of the following statements is true of inshoring and outsourcing?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Sinesia is a country that has very few sources of potable water. Given this information, which of the following is most likely to happen?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Explain the four stages in which multinational corporations develop their businesses.

Correct AnswerverifiedAnswers will vary. A company that is hea...View AnswerShow Answer

Which of the following is a difference between a joint venture and contract manufacturing?

Correct AnswerverifiedA

Global marketing is a one-way street whereby only U.S. companies sell their wares and services throughout the world.

Correct AnswerverifiedShow Answer

Which of the following is true of outsourcing?

Correct AnswerverifiedShow Answer

Which of the following is a factor that drives the popularity of imports in the United States?

Correct AnswerverifiedA

_____ is the largest Latin American trade agreement, and it includes Argentina, Bolivia, Brazil, Chile, Colombia, Ecuador, Paraguay, Peru, Uruguay, and Venezuela.

Correct AnswerverifiedShow Answer

Because Facebook, YouTube, and other social media are popular around the world, firms both large and small have embraced social media marketing.

Correct AnswerverifiedShow Answer

Which of the following statements is true of globalization?

Correct AnswerverifiedA

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

Correct AnswerverifiedShow Answer

Write a note on the economic factors that influence the external business environment.

Correct AnswerverifiedAnswers will vary. One of the major fact...View AnswerShow Answer

The final step in creating a marketing mix is developing a thorough understanding of the global target market.

Correct AnswerverifiedShow Answer

In the context of distribution, ocean shipping is faster than airfreight.

Correct AnswerverifiedShow Answer

Opening an e-commerce site on the Internet makes it difficult for a company to gain recognition in the international marketplace.

Correct AnswerverifiedShow Answer

Which of the following statements is true of a company that is in the second stage of global business?

Correct AnswerverifiedShow Answer

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Answers will vary. Many legal structures...
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Answers will vary. A company that is hea...
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Answers will vary. One of the major fact...
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