question

T/F George purchased a new hair dryer. However, the hair dryer sparked and the coil caught fire. He felt that the product was dangerous to use. In this case, George should voice his concerns to the Federal Trade Commission.

answer

False

question

T/F Demographic characteristics are strongly related to consumer buying behavior in the marketplace.

answer

True

question

T/F Component lifestyles decrease the complexity of consumers' buying habits.

answer

False

question

T/F A person's purchasing power is usually referred to as disposable income.

answer

False

question

T/F Component lifestyle refers to choosing products and services that conform to traditional stereotypes.

answer

False

question

T/F Age is the primary determinant of the person's earning potential.

answer

False

question

T/F Teens command negligible amount of buying power.

answer

False

question

T/F Global competition is decreasing with increase in population.

answer

False

question

T/F The management of a firm has utmost control over the competitive environment confronting it.

answer

False

question

T/F An inflation is defined as occurring when the gross domestic product falls for two consecutive quarters.

answer

False

question

T/F Demography is one of the controllable variables in the external environment.

answer

False

question

T/F Unlike television, social media enable firms to create conversations with customers and establish meaningful connections.

answer

True

question

T/F Demographic characteristics are strongly related to consumer buying behavior in the marketplace.

answer

True

question

T/F A mobile moment is the point in time at which a customer pulls out a mobile device to get immediate access to the information that he or she wants.

answer

True

question

T/F The locally dominant Spanish-speaking Hispanic community is referred to as the primal 45-Latino society.

answer

True

question

T/F Asian Americans, who represent only six percent of the U.S. population, have the lowest average family income of all groups.

answer

False

question

T/F The younger Millennials will create a significant amount of economic growth in the U.S.

answer

True

question

...

answer

...

question

global marketing

answer

targets markets throughout world

question

global vision

answer

recognizing and reacting to international marketing opportunities, using effective strategies, and being aware of threats from foreign competitors in all markets.

question

GDP (gross domestic product)

answer

the total market value of all final goods and services produced in a country for a given period of time.

question

outsourcing

answer

sending U.S. jobs abroad

question

inshoring

answer

returning production jobs to the United States (product designers, marketing researchers, logistics experts, manufacturers all in close proximity so they can work quickly as a team)

question

multinational corporation

answer

a company that is heavily engaged in international trade, beyond exporting and importing. (moves resources, goods, services, and skills across national boundaries without regard to the headquarters country)

question

capital intensive

answer

using more capital (equipment) than labor in the production process

question

global marketing standardization

answer

production of uniform products that can be sold the same way all over the world.

question

multi domestic strategy

answer

when multinational firms enable individual subsidiaries to compete individually in domestic markets (how multinational firms use strategic business units)

question

mercosur

answer

largest Latin American trade agreement, "an agreement to stimulate international trade." includes: Argentina Bolivia Brazil Chile Colombia Ecuador Paraguay Peru Uruguay Venezuela

question

Uruguay Round

answer

a trade agreement to dramatically lower trade barriers worldwide; *created WTO (world trade organization)

question

WTO World Trade Organization

answer

trade agreement that replaced the old GATT

question

GATT (General Agreement on Tariffs and Trade)

answer

trade agreement that contained loopholes enabling countries to avoid trade-barrier reduction agreements.

question

NAFTA (North American Free Trade Agreement)

answer

trade agreement between Canada, US, and Mexico that created the world's then-largest free trade zone

question

CAFTA-DR (Dominican Republic Central America Free Trade Agreement)

answer

trade agreement from 2005 that includes: Costa Rica Dominican Republic El Salvador Guatemala Honduras Nicaragua US

question

EU (European Union)

answer

a free trade zone encompassing 28 European countries

question

World Bank

answer

international bank that offers low-interest loans, advice, and information to developing nations

question

IMF (International Monetary Fund)

answer

international organization that acts as a lender of last resort, it provides loans to troubled nations and also works to promote trade through financial cooperation

question

G-20 (Group of Twenty)

answer

forum of international organization that promotes discussion between industrial and emerging-market countries on key issues related to global economic stability.

question

exporting

answer

selling domestically produced products to buyers in other countries

question

buyer for export

answer

an intermediary int he global market that assumes all ownership risks and sells globally for its own account

question

export broker

answer

an intermediary who plays traditional broker's role by bringing buyer and seller together

question

export agent

answer

an intermediary who acts like a manufacturer's agent for exporter; the export agent lies int eh foreign market

question

licensing

answer

legal process where a licensor allows another firm to use its manufacturing process, trademarks, patents, trade secrets, and other knowledge.

question

contract manufacturing

answer

private label manufacturing by a foreign company

question

joint venture

answer

when a domestic firm buys part of a foreign company or joins with a foreign company to create a new entity.

question

direct foreign investment

answer

active ownership of a foreign company or of overseas manufacturing or marketing facilities

question

exchange rate

answer

price of one country's currency in terms of another country's

question

floating exchange rates

answer

system in which prices of different currencies move up and down based on the demand for and the supply of each currency

question

dumping

answer

sale of an exported product at a price lower than that charged for the same of a like product in the "home" market of the exporter

question

countertrade

answer

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.

question

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

answer

True

question

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

answer

False

question

T/F Firms that want to become involved in licensing or to become heavily involved in global marketing may engage in contract manufacturing.

answer

False

question

T/F Average family incomes are higher in the more developed countries than in the less developed countries.

answer

True

question

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

answer

False

question

T/F In the context of direct foreign investment, direct investors have the lowest potential reward and the lowest potential risk

answer

False

question

T/F A multidomestic strategy occurs when multinational firms enable individual subsidiaries to compete independently in domestic markets.

answer

True

question

T/F Caused by shifting birthrate trends, a demographic dividend often leads to rising labor costs.

answer

False

question

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

answer

False

question

T/F The surge in global trade in recent years has added to strains and charges for all forms of transport.

answer

False

question

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

answer

Fasle

question

T/F When a company invests in a foreign firm and holds active ownership of the firm, then the company is said to be in a joint venture with the foreign firm.

answer

False

question

T/F Firms that want to become involved in licensing or to become heavily involved in global marketing may engage in contract manufacturing.

answer

False

question

T/F Caused by shifting birthrate trends, a demographic dividend often leads to rising labor costs.

answer

False

question

T/F Of all the types of managers, managers of global social media campaigns are the ones who need not be aware of the cultures of the countries in which they operate.

answer

False

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