Question 1

Which of the following is a reason for practicing outsourcing in the United States?

Accepted Answer

A)  Increased corporate growth
B)  Chances of increased production delays
C)  Rising wages in the developing world
D)  Improperly designed parts and products in foreign countriesE) B) and C)
F) None of the above

Question 2

Which of the following is a similarity between export brokers and export agents?

Accepted Answer

A)  Both act as hired purchasing agents for foreign customers operating in an exporter's home market.
B)  Both live in foreign countries and assist in international trade.
C)  Both assume all risks associated with selling a manufacturer's product in the international market.
D)  Both allow manufacturers to retain title for products.E) B) and D)
F) A) and B)

Question 3

A company wishing to buy goods abroad must first obtain a foreign currency exchange from the control agency.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following statements is a characteristic of dumping?

Accepted Answer

A)  It refers to the active ownership of a foreign company or of overseas manufacturing or marketing facilities.
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 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.
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) None of the above
F) B) and C)

Question 5

One important resource of foreign direct investment is personnel, especially managers.

Accepted Answer

A) True 
 B)False

Question 6

Exporting is usually the most complicated and most risky method of global marketing.

Accepted Answer

A) True 
 B)False

Question 7

Yuncen Foods is a food manufacturer based in Lumberne. It gets over half of its revenue from international sales. It has been consistently ranked as the best food manufacturer in the world. Given this information, which of the following statements is true of Yuncen Foods?

Accepted Answer

A)  The company is overlooking the threats posed by foreign companies in Lumberne.
B)  The packing of frozen foods is outsourced to other countries.
C)  The company is not competitive in its home country.
D)  Geographic and political barriers are irrelevant to the company's business decisions.E) A) and D)
F) B) and D)

Question 8

In a direct foreign investment, which of the following statements is true of the direct investors?

Accepted Answer

A)  They do not have a controlling interest in the firm.
B)  They possess the lowest potential risk.
C)  They have the highest potential reward.
D)  They have a small minority interest in the foreign firm.E) B) and C)
F) All of the above

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

Which of the following statements is true of third-stage multinational companies?

Accepted Answer

A)  They sell products only in one country.
B)  Their top executives and core corporate functions are in different countries.
C)  They operate an entire line of business in another country.
D)  They set up foreign subsidiaries to handle sales in one country.E) C) and D)
F) A) and B)

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

Question 12

Why do firms that enter into foreign trade need to adhere to the principles of the marketing mix?

Accepted Answer

Answers will vary. To succeed, firms see...

Question 13

_____ 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) All of the above

Question 14

The management of Irving Inc., an apparel company based in Letonia, decides to expand the company's operations to several other countries. Given this information, which of the following strategies can be adopted by the management to succeed in the foreign environment?

Accepted Answer

A)  It can sell the same clothes it sells in its home country in the other countries.
B)  It can modify its Web site according to the foreign countries' cultures.
C)  It can limit personal selling to buyers in the foreign countries.
D)  It can solely rely on free translation software to translate slogans and instructions.E) None of the above
F) A) and C)

Question 15

Which of the following is a similarity between joint ventures and licensing agreements?

Accepted Answer

A)  Both involve joining with a foreign company to create a new entity.
B)  Both depend heavily on contract manufacturing.
C)  Both are free from government interference.
D)  Both are free from risks.E) A) and B)
F) A) and D)

Question 16

Which of the following statements is true in the context natural resources?

Accepted Answer

A)  The past decade has witnessed 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) All of the above
F) B) and C)

Question 17

Fresnas Corp., a company that designs and manufactures apparel, practices inshoring. Given this information, which of the following is most likely to be true of Fresnas Corp.?

Accepted Answer

A)  It keeps its research team in close proximity.
B)  It faces increased shipping and transportation costs.
C)  It outsources its manufacturing jobs to other countries.
D)  It faces a lot of production delays.E) B) and D)
F) A) and B)

Question 18

Khokho's Coffee House was the first company to introduce flavored coffee in the global market. It sells coffee in several different flavors, such as blueberry, cinnamon, and cranberry, based on the flavors each country prefers. In this scenario, Khokho's Coffee House is involved in _____.

Accepted Answer

A)  product invention
B)  promotion adaptation
C)  global marketing standardization
D)  product adaptationE) A) and C)
F) B) and C)

Question 19

Joint ventures prevent a local firm from acquiring managerial skills and new technology.

Accepted Answer

A) True 
 B)False

Question 20

D'Costas, an authentic Sparanthean restaurant, has many branches all over the world. The taste and quality of the food served is same across all its branches. Based on this information, D'Costas is most likely following the strategy of _____.

Accepted Answer

A)  global marketing localization
B)  product adaptation
C)  mass customization
D)  global marketing standardizationE) C) and D)
F) All of the above

Exam 5: Developing a Global Vision

Which of the following statements is a characteristic of dumping?

Correct AnswerverifiedShow Answer

The management of Irving Inc., an apparel company based in Letonia, decides to expand the company's operations to several other countries. Given this information, which of the following strategies can be adopted by the management to succeed in the foreign environment?

Correct AnswerverifiedShow Answer

Khokho's Coffee House was the first company to introduce flavored coffee in the global market. It sells coffee in several different flavors, such as blueberry, cinnamon, and cranberry, based on the flavors each country prefers. In this scenario, Khokho's Coffee House is involved in _____.

Correct AnswerverifiedShow Answer

One important resource of foreign direct investment is personnel, especially managers.

Correct AnswerverifiedShow Answer

D'Costas, an authentic Sparanthean restaurant, has many branches all over the world. The taste and quality of the food served is same across all its branches. Based on this information, D'Costas is most likely following the strategy of _____.

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

Which of the following is a similarity between export brokers and export agents?

Correct AnswerverifiedShow Answer

A company wishing to buy goods abroad must first obtain a foreign currency exchange from the control agency.

Correct AnswerverifiedShow Answer

Fresnas Corp., a company that designs and manufactures apparel, practices inshoring. Given this information, which of the following is most likely to be true of Fresnas Corp.?

Correct AnswerverifiedShow Answer

Which of the following statements is true in the context natural resources?

Correct AnswerverifiedShow Answer

Yuncen Foods is a food manufacturer based in Lumberne. It gets over half of its revenue from international sales. It has been consistently ranked as the best food manufacturer in the world. Given this information, which of the following statements is true of Yuncen Foods?

Correct AnswerverifiedShow Answer

Why do firms that enter into foreign trade need to adhere to the principles of the marketing mix?

Correct AnswerverifiedAnswers will vary. To succeed, firms see...View AnswerShow Answer

Exporting is usually the most complicated and most risky method of global marketing.

Correct AnswerverifiedShow Answer

In a direct foreign investment, which of the following statements is true of the direct investors?

Correct AnswerverifiedShow Answer

Which of the following is a reason for practicing outsourcing in the United States?

Correct AnswerverifiedShow Answer

Which of the following is a similarity between joint ventures and licensing agreements?

Correct AnswerverifiedShow Answer

Which of the following statements is true of third-stage multinational companies?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Joint ventures prevent a local firm from acquiring managerial skills and new technology.

Correct AnswerverifiedShow Answer

Which of the following is a characteristic of market grouping?

Correct AnswerverifiedShow Answer

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Answers will vary. To succeed, firms see...
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