question

Most Americans tend to take access to global products and services for granted.

answer

True

question

The greater the wealth of a country, generally, the better the opportunity a firm will have in that particular country.

answer

True

question

The Big Mac Index is a measure of economic health in a country.

answer

False

question

Colin wants information about the infrastructure in the countries his company is planning to export to. He will gather information about the transportation and communications capabilities in each country.

answer

True

question

Tariffs artificially lower prices and therefore lower demand.

answer

False

question

The North American Free Trade Agreement represents the highest level of integration among the various international trade agreements.

answer

False

question

The BRIC countries are Bolivia, Russia, Italy and China.

answer

False

question

China is now the second-largest economy and the third-largest market for U.S. exports.

answer

True

question

India is one of the fastest growing markets and has one of the youngest populations in the world.

answer

True

question

Brazil is characterized by strong upper and lower classes, but the middle class has declined in recent years.

answer

False

question

Russia lags behind most European countries in use of the Internet.

answer

False

question

Global expansion often begins when a firm receives an order for its product from another country.

answer

True

question

Exporting refers to a situation where a company maintains ownership of its plants, operational facilities, and offices in a foreign country in which it sells its products.

answer

False

question

In a joint venture, the burden of ownership, control, and profits is not shared.

answer

False

question

Entering into a global franchise agreement exposes a company to higher risk than if the company had entered into direct investment in the country.

answer

False

question

There is only one global product strategy: to sell a product or service similar to that sold in the home country, but include minor adaptations.

answer

False

question

An effective global pricing strategy can be easily established by setting the same prices in every market around the world.

answer

False

question

Globalization refers to a global marketing strategy in which each of the four Ps is customized for each country.

answer

False

question

To maximize potential, segments and target markets can and should be defined by more than just geography.

answer

True

question

The EU recently recommended common guidelines for its member countries regarding advertising to children.

answer

True

question

Firms with global appeal can run global advertising campaigns and simply translate the wording in the advertisements and product labeling.

answer

True

question

Using middlemen in global distribution networks generally lowers costs and prices for products.

answer

False

question

Sophia owns a string of boutiques in Italy. As such, she is only allowed to have sales twice a year, in January and June or July.

answer

True

question

A consumer products company produces inexpensive goods in underdeveloped markets, then repackages them as cost-effective innovations for Western buyers. This is an example of glocalization.

answer

False

question

Direct investment offers the firm complete control over its operations in the foreign country.

answer

True

question

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

answer

flow across national borders.

question

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

answer

ethnic analysis.

question

Chris is gathering information about the general economic environment in Nepal. He will look for information about the general economic environment, market size and population 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 metrics 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 is defined as

answer

the market value of goods and services produced in a country in a year.

question

Gross national income equals GDP

answer

plus the net investment income earned from abroad.

question

plus the net investment income earned from abroad.

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

Many 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 continue to show the same growth in the future.

question

The shift of population from rural to urban areas in countries such as India helps global marketers by

answer

simplifying the supply chain needed to make goods and services available.

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

infrastructure

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 commercial infrastructure in Mauritius, he considered the island's

answer

legal, banking, and regulatory systems.

question

Changes in tariffs and quotas are

answer

government 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 practices.

question

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

answer

quota

question

Exchange control refers to the regulation of a country's

answer

currency exchange rate.

question

When the value of the dollar declines in relation to other currencies, it benefits U.S. marketers who

answer

export goods to 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 belongs to 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 trade agreements represents the highest level of integration among participating nations?

answer

EU

question

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

answer

underlying values

question

Chris laughed at some of the cultural mistakes companies 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 sometimes use Hofstede's cultural dimensions to design marketing campaigns

answer

consistent with underlying cultural values in a country.

question

Culture affects

answer

every aspect of consumers' purchase decisions.

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 Starbucks 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

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.

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 venture

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. It has the financial resources, wants to control business operations, and has 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) are more complicated than local STP, in part because

answer

consumers may view their roles differently in different countries.

question

Global segmenting, targeting, and positioning are 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 in the way they see products and services.

question

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

answer

segmentation, targeting, and positioning

question

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

answer

large U.S. 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

Tariffs, quotas, 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 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 United States. The client wanted to roll out the same campaign to markets worldwide, but Graham cautioned against doing this, most likely 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 in Europe, where she feels it will be innovative. Her advertising agency urged caution because

answer

advertising regulations differ in other countries, including advertising to children.

question

Brands can be extremely valuable domestically, but challenging internationally. 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

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 is granted the right to operate a business using the franchise name and business concept?

answer

franchisee

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 United States imports more goods from China than it exports to China. This is known as

answer

a trade deficit.

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 global ________ strategy.

answer

product

question

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

answer

NAFTA

question

Ford Motor Company decided to sell the Fiesta around the globe. Which of the following would be an example of globalization of the Fiesta?

answer

The same product design and features in all countries, with variations in the promotional campaigns country by country.

question

One Laptop Per Child is a nonprofit initiative with the goal of making extremely low-cost laptops available to children in the developing world to help them learn skills, with the goal of helping them to learn skills needed in today's workforce. If some of the low-cost technology developed for this laptop found its way into laptops created for U.S. consumers, this would be an example of

answer

reverse innovation.

question

Which of these is NOT one of the BRIC countries?

answer

Bulgaria

question

What do the BRIC countries have in common?

answer

They are experiencing significant levels of economic growth.

question

Which of the following is currently a negative factor for foreign investment in Russia?

answer

Russia is known for corruption, creating ethical dilemmas for firms.

question

Which of the following is currently a negative factor for foreign investment in India?

answer

India's infrastructure for supply chain management is not up to date.

question

Which of the following is a potential negative factor for foreign investment in China?

answer

China's population is aging rapidly.

question

Which of the BRIC countries has the highest illiteracy rate?

answer

India

question

Why should marketers be aware of the BRIC countries?

answer

They are likely to be the source of most market growth.

question

Which statement about India's population is TRUE?

answer

India's workforce is highly skilled, particularly in technology.

question

With a median age of 34.1 years, ________ is one of the most rapidly aging countries in the world.

answer

China

question

Changes in _________ have been a driving force for growth in global markets for decades.

answer

technology

question

Which country has a large literate population, which has helped it move up to become the world's seventh largest economy?

answer

Brazil

question

Which country is projected to become Europe's largest online market in the next few years, with Internet users growing at a rate of 15 percent annually?

answer

Russia

question

Which country's government has recently made significant changes that will modernize the retail environment, such as allowing joint ventures and direct ownership in some cases?

answer

India

question

Which country has embraced market-oriented economic development in spite of maintaining communist political ideals?

answer

China

question

Which country has a rapidly aging population due to its one-child policy?

answer

China

question

Once a firm has done an analysis of the most viable markets for its products, then it must next

answer

conduct an internal assessment of its capabilities.

question

Mary wants to sell her products in Europe, since they are doing well in the U.S. She does not have a lot of capital and is risk-averse, so she most likely would choose to begin with

answer

exporting her products.

question

Franco, a former retailer, has been living in the United States for five years and wants to start a business. He does not have an existing firm or a product, and he doesn't have a lot of capital, but since he loves McDonalds food, he decides to

answer

open a McDonald's franchise.

question

Sydney's Emporium has 59 stores in the U.S. and wants to expand globally. Sydney's wants to achieve the highest possible returns, and is not concerned about pursuing a high-risk strategy as long as it maintains complete control over its stores. The best global entry strategy for Sydney's is most likely

answer

direct investment.

question

When Ford introduced its Figo in India, it was responding to

answer

the economic and social trends in India toward small cars.

question

If you visit a Kentucky Fried Chicken restaurant in China, you will find congee, a rice porridge that can feature pork, pickles, mushrooms, and preserved egg, on the menu. This is an example of which global product strategy?

answer

Sell totally new products or services.

question

Franz lives in a country where he and his friends have disposable income, in spite of the fact that their average income is $650 per month, because they have no debt and don't save money. Franz most likely lives in

answer

Russia.

question

Gandolph's Tires sells the same tire globally, but it uses different advertisements based on the country and culture. This is an example of

answer

globalization.

question

Unilever discovered that people in emerging economies could not afford to buy standard sizes of toothpaste or shampoo, so Unilever started selling single-serve packets at very low prices. Later, Unilever discovered that the same approach worked in the U.S. and started also selling them there. This is an example of

answer

reverse innovation.

question

Core Publishing Company learned that when selling overseas, local fulfillment can be more cost effective, and it can decrease delivery time and improve customer service. This is an example of a global _________ strategy.

answer

distribution

question

In China, state control of media is high, so companies are challenged to find ways to get their message to customers. This demonstrates one of the difficulties in crafting a global ________ strategy.

answer

communication

question

China has three main languages, and many more dialects. This presents a particular challenge to developing a global ________ strategy.

answer

communication

Marketing Final: Ch. 8 – Flashcards

Unlock all answers in this set

Haven't found what you were looking for?

Search for samples, answers to your questions and flashcards