question

Globalization refers to the process by which ______________ flow across national borders.

answer

Goods Services Capital People --(answer on test: "all of these")

question

Globalization refers to the process by which goods, services, capital, people, and ideas:

answer

Flow across national borders

question

Changes in _________________ have been the driving force for growth in global markets for decades.

answer

Technology

question

Offshoring originally focused on relocating manufacturing to:

answer

Lower cost producing countries

question

Offshoring refers to:

answer

Globalization of production

question

Offshoring has expanded to include products of the ______________: medical, financial, technological, and consulting services.

answer

Knowledge economy

question

Key industries in the knowledge economy - medical services, financial advice, technical support and consulting - take advantage of offshoring. The majority of this work goes to:

answer

Europe

question

Originally, offshoring focused on relocating ________________ to lower cost producer countries.

answer

Manufacturing

question

The ________, agreed upon in 1948, was designed to lower trade barriers.

answer

GATT (general agreements on tariffs and trade)

question

The WTO provides all of the following functions EXCEPT which of the following?

answer

Maintaining the international monetary system

question

The _____ provides loans and technical assistance to developing countries.

answer

World Bank

question

The goal of the World Bank is to:

answer

Reduce poverty through low-interest loans and other programs

question

The IMF and World Bank benefit global marketers through:

answer

Raising the global standard of living

question

The primary criticism of the World Bank is that it is a puppet of Western industrialized countries that:

answer

Use world bank loans to promote globalization efforts

question

One criticism of the _______________ is that it loans too much money to third-world countries, making it almost impossible for these countries to pay back the loans.

answer

World Bank

question

Despite criticism, globalization has:

answer

Progressed at a steady and increasing pace

question

The components of global market assessment include all of the following EXCEPT:

answer

Sensory analysis

question

Chris is gathering information about the general economic environment in Nepal. He will look for information about the general economic environment, population size and growth rate, and:

answer

Real Income

question

To determine the market potential for its particular product or service, a firm should use:

answer

As many measures as it can obtain

question

Manufacturers would prefer to produce in a country with a trade __________, because it signals a greater opportunity to export products to more markets.

answer

Surplus

question

The most common measure of market potential of an economy is a country's:

answer

GDP

question

GDP=

answer

The market value of goods and services produced in a country within a year

question

Gross National Income equals GDP...

answer

Plus the net investment income earned from abroad

question

The Big Mac Index is a novel measure of:

answer

Purchasing power parity

question

According to purchasing power parity theory, if ____________ is/are in equilibrium, products will cost the same in each country.

answer

Exchange rates

question

Economic measures like GDP and GNI do not fully account for a country's economic health because they only measure:

answer

Material output

question

The ________________________ is a composite measure of three indicators of the quality of life in different countries.

answer

Human Development Index

question

The Human Development Index does NOT include:

answer

Gross domestic product

question

Developed countries are experiencing _______________ population growth.

answer

Zero or negative

question

Cory is working on a global marketing assessment team looking out well into the future to help determine the most attractive market areas around the world. He is evaluating market sizes and growth rates. Based on population growth rates in different regions, he should consider that:

answer

Countries with high purchasing power today may not show the same growth in the future

question

The shift of population from rural to urban areas helps global marketers by:

answer

Simplifying the supply chain needed to make goods and services available

question

India's Panaloon Retail succeeded when:

answer

It gave up on its modern presentation and emulated noisy, messier, and more cramped presentations

question

When Darren assessed infrastructure conditions in Paraguay, he assessed the country's _________________ capabilities.

answer

Transportation Commerce Distribution channels Communications --(answer on test: "all of these")

question

When considering global marketing opportunities in Bangladesh, Tom asked the question, "How will we get it there?" Tom is concerned about ______________ capabilities in Bangladesh.

answer

Infastructure

question

As part of efforts to stimulate economic development in Africa, the Gates Foundation announced that it would provide cellular phones to farmer cooperatives. The Gates Foundation recognized problems in ______________ exist in many African markets.

answer

Communication

question

When Ben evaluated the commerce infrastructure in Mauritius, he considered the island's:

answer

Legal, banking, and regulatory systems

question

Changes in tariffs and quotas are:

answer

Gov't actions that reduce competition from international firms

question

Tariffs protect domestic producers by:

answer

making imported products more expensive

question

In most cases, countries use tariffs to reduce foreign competition but, tariffs are also used:

answer

As a response to perceived unfair trade activities

question

If foreign companies try to gain market share in the U.S. by selling goods below what it costs to make them, the U.S. government can fine the companies and distribute the collected fines to affected U.S. companies. This foreign company's practice is known as:

answer

Dumping

question

A ______________ limits the quantity of imported merchandise, thus minimizing competition faced by domestic products.

answer

Quota

question

A _______________ is a campaign to get consumers to choose not purchase products from a country.

answer

Boycott

question

One of the reasons for the surge in foreign-made textiles in the United States was elimination of __________ on foreign-made textiles.

answer

Quotas

question

Exchange controls refers to the regulation of a country's:

answer

Currency exchange rate

question

In recent years, the decline in the value of the dollar has helped U.S. marketers:

answer

Exporting to other countries

question

In recent years, the decline in the value of the dollar has hurt U.S. marketers:

answer

Importing goods from other countries

question

Which of the following is NOT one of the major trade agreements affecting global marketing?

answer

GNI

question

Marketers considering operations and trade with a specific country must consider whether the country is a trading bloc. A trading bloc is a group of countries:

answer

That have established a formal agreement to manage trade activities

question

Which of these represents the highest level of integration among participating nations, involving both economic and monetary agreements?

answer

EU

question

The __________ represents a significant restructuring of the global marketplace by dramatically lowering trade barriers among an expanded number of member nations.

answer

EU

question

Marketers in the European Union have benefited from streamlined and simplified ____________ rules.

answer

Privacy Advertising Direct selling Patent application --(answer on test: "all of these")

question

NAFTA, like other free trade agreements, is limited to trade-related issues such as:

answer

Tariffs and quotas

question

Critics of trading blocs argue that these agreements:

answer

Result in unfair trading advantage among participants

question

Diana's firm makes pumps and valves, and it has begun expanding internationally. A firm in Argentina responded to the company's website to inquire about becoming a distributor for the firm, and Diana is trying to analyze the opportunity. In her analysis, she will look at the implications of Argentina's membership in:

answer

Mercosur (S. America's trading bloc)

question

Global businesses often find it more difficult to understand the _______________ of a country's culture.

answer

Underlying values

question

Chris had laughed at some of the cultural mistakes companies had made in advertising and promotion in international trade while he was in school. Now he was trying to determine what had gone wrong with the campaign he had planned in Latin America for his company's product, and it didn't seem quite as amusing. He narrowed the issues down to sociocultural factors. He was looking at both __________ and ________________.

answer

Visible artifacts; Underlying values

question

Geert Hofstede's cultural dimensions concept focuses on five dimensions of __________________ in a country

answer

Underlying values

question

Which of the following is NOT one of Hofstede's cultural dimensions?

answer

Certainty Assurance

question

Marketers use Hofstede's cultural dimensions to design marketing campaigns:

answer

Consistent with underlying cultural values in a country

question

Paula has done exceptionally well in developing U.S. domestic markets, but she has had to learn new rules when marketing overseas. She has been struggling to learn how to communicate her product's benefits and features in foreign markets. Not only did she have to learn how to use a foreign language, she had to learn how ________________ affected how potential customers would view her product.

answer

-Thoughts, beliefs, and assumptions -Symbols, ceremonies, behavior, dress, and physical settings -Power, uncertainty, individualism, time, and dominant values -Verbal and nonverbal cues --(answer on test: "all of these")

question

Culture affects:

answer

Every aspect of consumers' purchase decisions

question

When assessing internal capabilities to support global expansion, a firm will consider its:

answer

Access to capital Current markets Manufacturing capacity Propeietary assets --(answer on test: "all of these")

question

Generally, firms entering foreign markets begin with:

answer

Less risky strategies first

question

When entering a foreign market, the least risky strategy is:

answer

Exporting

question

Global expansion often begins with:

answer

An order from another country

question

Many of the best-known American retailers, like KFC and McDonalds, have expanded globally using:

answer

Franchising

question

Gerald is assessing global entry strategies for his gourmet sandwich business. He does not want to take a lot of risk and he is willing to limit his control of international stores. Gerald will likely use a ___________ strategy.

answer

Franchising

question

Domestic firms developing a global entry strategy might consider franchising; however, the disadvantages need to be considered. Which of these is NOT a disadvantage of franchising?

answer

Franchising is the riskiest way to enter a foreign market (^^this isn't true but it's an option that's why it's not a disadvantage)

question

When firms pool their resources to enter a new market, they create a(n):

answer

Joint venture

question

China, like many other countries, usually requires entering firms to create _________ when expanding into their markets, limiting outsiders' control of businesses.

answer

Joint ventures

question

Of the five strategies for entering new markets, direct investment creates the:

answer

Greatest potential risk

question

NCD company wants to expand into the Mexican market. They have financial resources, want to control business operations, and have had considerable success marketing to Hispanics in the United States. NCD will likely use ______________ to expand into the Mexican market.

answer

Direct investment

question

Global segmentation, targeting, and positioning (STP) is more complicated than local STP because:

answer

Consumers may view their role differently in different countries

question

Global segmenting, targeting and positioning is more complicated than domestic segmenting and positioning because of cultural nuances, significant subcultures within countries, and:

answer

Differences in the way consumers see themselves and the way they view products and services

question

Cultural nuances, subcultures, and consumers' different views of their roles in different countries can make ___________________ complicated.

answer

STP

question

During the early stages of globalization, in the 1950s and 1960s, _______________ were uniquely positioned because they had the skills necessary to develop, promote, and market brand name consumer products.

answer

Large US firms

question

In the 1970s and 1980s, ______________ dominated the global marketplace because they could exploit their skills in production, materials management, and new product development.

answer

Japanese firms

question

The most important consideration, when a firm chooses a global product strategy, should be:

answer

The needs of the target market

question

When considering a new global market, a food marketer's product strategy will include consideration of:

answer

The level of economic development -Differences in product and technical standards -Language differences -Religion --(answer on test: "all of these")

question

When considering global product strategies, firms should consider:

answer

-How economic development affects the attributes of a product -How it might standardize the product but vary the promotion -The needs of the target market --(answer on test: "all of these")

question

Tariffs, quotas, anti-dumping laws, and currency exchange policies affect global:

answer

Pricing strategies

question

Global pricing strategies should be consistent with:

answer

Positioning strategies

question

Global marketers are under constant pressure to shorten distribution channels in order to:

answer

Reduce costs

question

Global marketers typically find distribution in developing countries is more complex because:

answer

they must go through many types of distribution channels

question

Graham had developed an extremely successful advertising and promotion campaign for a client in the U.S. The client wanted to roll the same campaign out to markets worldwide, but Graham cautioned against doing this because:

answer

differences in languages, customs and culture might make the campaign meaningless and ineffective in some markets

question

Celia's firm has developed a breakfast cereal targeted toward children. Rather than compete in the mature U.S. market, she has decided instead to introduce the product to Europe where she feels it will be innovative. Her ad agency urged caution because:

answer

Advertising regulations differ, including advertising to children

question

Brands can be extremely valuable domestically, but international use can be challenging. Companies can help to overcome language difficulties in using brands by:

answer

Developing brand names that are meaningless in known languages

question

Which of the following is one of the global entry strategies?

answer

Direct investment

question

When a company decides to minimize risk and enter a global market by shipping its products to buyers in other countries, this is known as:

answer

Exporting

question

Which of the following best describes the direct investment global entry strategy?

answer

With direct investment, a firm maintains total ownership of its plants, operation facilities, and offices in a foreign country

question

The term "trade deficit" refers to:

answer

Higher levels of imports than exports

question

Which of the following actions performed by a government may prevent or discourage a firm from entering a particular country's marketplace?

answer

Setting tariffs Setting quotas Establishing a boycott Setting exchange control --(answer on test: "all of these")

question

When shopping for a car you notice a significant price gap between domestic and imported cars, with the imported cars being much more expensive. This could be the result of:

answer

A tariff

question

When entering into a franchise agreement, what term is used to refer to the firm that will provide a service using the name and business format developed?

answer

Franchise

question

Which of the following statements best describes global expansion through a strategic alliance?

answer

A strategic alliance is a relationship in which two firms collaborate on a business opportunity, but do not invest in each other

question

Which of the following global entry strategies is being used if a company collaborates with a competitor on a globally-based opportunity for mutual benefit, but the competitors do not invest in each other?

answer

Strategic alliance

question

The U.S. imports more goods from China than it exports to China. This is known as:

answer

A trade deficit

question

Which of the following must be taken into consideration by a food company, such as Kraft, when entering a global market?

answer

Food companies must adjust their approaches to global markets by recognizing their unique characteristics and consumer demands.

question

Which of the following statements describes the requirements Walmart is mandating from its suppliers in order to address concerns about its reputation where globalization is concerned?

answer

All manufacturers must be audited by third parties

question

When Ford Motor Company decided to sell the Fiesta--in the same form and design--around the globe, instead of selling different versions in different countries, this was part of Ford's:

answer

Global product strategy

question

Which of the following trade agreements is designed to manage and promote trade activities for the United States, Canada and Mexico?

answer

NAFTA

BUS 346 Midterm Ch. 7 …don’t need :( – Flashcards

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