Question 1

All of the following are advantages of licensing except which?

Accepted Answer

A)  the foreign country gains employment by having the product manufactured locally
B)  the licensee gains information that allows it to start with a competitive advantage
C)  the lower risk to the company granting the license compared to direct investment.
D)  the licensor's ability to protect its brand name from harm
E)  the capital-free entry into a foreign country

Question 2

Foreign countries with very low per capita incomes may still be attractive markets for some goods.To get a more reliable picture of a country's purchasing power,a country's ________ must also be considered.

Accepted Answer

A)  total income
B)  total area
C)  geographical location
D)  culture
E)  income distribution

Question 3

The practice where a translated word or phrase is retranslated into the original language by a different interpreter to catch errors is referred to as

Accepted Answer

A)  locution.
B)  heuristics.
C)  transliteration.
D)  back translation.
E)  cross-cultural paraphrasing.

Question 4

Which type of exporting has the least amount of commitment and risk but will probably return the least profit?

Accepted Answer

A)  direct
B)  indirect
C)  licensing
D)  joint
E)  unilateral

Question 5

Which of the following statements concerning currency exchange rates is most accurate?

Accepted Answer

A)  Short-term exchange rate fluctuations can have a significant effect on the profits of global companies.
B)  Fluctuations in exchange rates among the world's currencies occur,but multinational companies are insulated from the affects because of direct investment.
C)  Exchange rate fluctuations are relatively rare,and when they occur,their effects are minimal.
D)  Exchange rate fluctuations are now almost nonexistent due in great part to the stability of the euro.
E)  Exchange rate fluctuations may affect the financial sector but rarely reach the consumer.

Question 6

Canada has two official languages,which are

Accepted Answer

A)  English and Japanese.
B)  English and Spanish.
C)  English and French.
D)  English and Italian.
E)  English and German.

Question 7

The Foreign Corrupt Practices Act

Accepted Answer

A)  makes it a crime for U.S.corporations to bribe an official of a foreign government or political party to obtain or retain business in a foreign country.
B)  has different levels of punishment based upon the wealth of the host nation.
C)  regulates only the behavior of U.S.businesses conducting business within the United States.
D)  makes the theft of trade secrets by foreign entities a federal crime in the United States.
E)  is a unilateral agreement the United States made with several developing nations.

Question 8

The law,as amended by the International Anti-Dumping and Fair Competition Act,that makes it a crime for U.S.corporations to bribe an official of a foreign government or political party to obtain or retain business in a foreign country,is referred to as the

Accepted Answer

A)  International Law for Egalitarian Ethics Act.
B)  International Fair Practices Act.
C)  Law of International Equity Act.
D)  International Law of Ethical Business Practices Act.
E)  Foreign Corrupt Practices Act.

Question 9

Consider the distribution channels through which a product manufactured in one country must travel to reach its destination in another country.Channels of distribution in global marketing are often long and complex.The availability and quality of retailers and wholesalers as well as transportation,communication,and warehousing facilities are often determined by

Accepted Answer

A)  the seller and the exporter.
B)  a country's stage of economic development.
C)  the seller's international marketing headquarters and the channels between nations.
D)  channels between nations and the channels within the foreign nation.
E)  channels within the foreign nation and the foreign retailer.

Question 10

A brand marketed under the same name in multiple countries with similar and centrally coordinated marketing programs is referred to as a(n)

Accepted Answer

A)  transnational brand.
B)  international brand.
C)  multinational brand.
D)  global brand.
E)  meganational brand.

Question 11

In Latvia,only one six-lane highway exists,connecting Riga,its capital,with Moscow.Otherwise,the roads are two lanes and many are made of cobblestones or bricks.This limits the speed with which deliveries can be made and requires that delivery trucks be quite small.The road network in Latvia is an example of problems with a country's

Accepted Answer

A)  capital improvements.
B)  fixed-asset base.
C)  geopolitical wealth.
D)  asset wealth.
E)  economic infrastructure.

Question 12

The European Union is an economic and political union of ________ member countries that have eliminated most barriers to the free flow of products,services,capital,and labor across their borders.

Accepted Answer

A)  17
B)  20
C)  28
D)  30
E)  37

Question 13

To eliminate the need to continually monitor currency exchange rates,16 of the countries in the European Union (EU) have adopted a common currency,which is called the

Accepted Answer

A)  pound.
B)  franc.
C)  euro.
D)  mark.
E)  dollar.

Question 14

Direct investment in as a global market-entry strategy refers to

Accepted Answer

A)  offering the right to a trademark,patent,trade secret,or similarly valued items of intellectual property in return for a royalty or a fee.
B)  contracting with a foreign firm to manufacture products according to certain specifications.
C)  a foreign company and a local firm investing together to create a local business.
D)  having a company handle its own exports directly,without intermediaries.
E)  a domestic firm actually investing in and owning a foreign subsidiary or division.

Question 15

Starbucks and Tata Global Beverage have together formed TATA Starbucks Limited in order to bring Starbucks to India.The global market entry strategy is known as

Accepted Answer

A)  franchising.
B)  a joint venture.
C)  licensing.
D)  direct investment.
E)  exporting.

Question 16

A joint venture entails

Accepted Answer

A)  offering the right to a trademark,patent,trade secret,or similarly valued items of intellectual property in return for a royalty or a fee.
B)  contracting with a foreign firm to manufacture products according to certain specifications.
C)  a foreign company and a local firm investing together to create a local business.
D)  having a company handle its own exports directly,but using intermediaries for importing.
E)  exporting through an intermediary,which often has the knowledge and means to succeed in selling a firm's products abroad.

Question 17

If you wanted to set up a business importing amber jewelry from Latvia to the United States,you would have to plan on paying the U.S.Customs Service a government tax of roughly 11 percent of the value of the product as a(n)

Accepted Answer

A)  bribe.
B)  tariff.
C)  subsidy.
D)  excise tax.
E)  quota.

Question 18

The EU has benefited its member nations in part because

Accepted Answer

A)  there is a legally binding code of economic conduct.
B)  there is immunity against world recessions.
C)  there are fewer regulatory restrictions on transportation,advertising,and promotion.
D)  there is a common language advantage among EU consumers.
E)  most companies within the EU are engaging in strategic global partnerships.

Question 19

Explain the trade feedback effect.

Accepted Answer

Increased demand for exports of other na...

Question 20

Around the world,middle-class,youth,and elite markets that consume similar assortments of products and services,regardless of geographic location,are referred to as

Accepted Answer

A)  transnational consumers.
B)  meganational consumers.
C)  international consumers.
D)  multinational consumers.
E)  global consumers.

Exam 7: Understanding and Reaching Global Consumers and Markets

All of the following are advantages of licensing except which?

Correct Answer
verified

The European Union is an economic and political union of ________ member countries that have eliminated most barriers to the free flow of products,services,capital,and labor across their borders.

Correct Answer
verified

A brand marketed under the same name in multiple countries with similar and centrally coordinated marketing programs is referred to as a(n)

Correct Answer
verified

Which type of exporting has the least amount of commitment and risk but will probably return the least profit?

Correct Answer
verified

Which of the following statements concerning currency exchange rates is most accurate?

Correct Answer
verified

The law,as amended by the International Anti-Dumping and Fair Competition Act,that makes it a crime for U.S.corporations to bribe an official of a foreign government or political party to obtain or retain business in a foreign country,is referred to as the

Correct Answer
verified

Around the world,middle-class,youth,and elite markets that consume similar assortments of products and services,regardless of geographic location,are referred to as

Correct Answer
verified

To eliminate the need to continually monitor currency exchange rates,16 of the countries in the European Union (EU) have adopted a common currency,which is called the

Correct Answer
verified

Starbucks and Tata Global Beverage have together formed TATA Starbucks Limited in order to bring Starbucks to India.The global market entry strategy is known as

Correct Answer
verified

Correct Answer
verified

The practice where a translated word or phrase is retranslated into the original language by a different interpreter to catch errors is referred to as

Correct Answer
verified

Foreign countries with very low per capita incomes may still be attractive markets for some goods.To get a more reliable picture of a country's purchasing power,a country's ________ must also be considered.

Correct Answer
verified

Correct Answer
verified

The Foreign Corrupt Practices Act

Correct Answer
verified

The EU has benefited its member nations in part because

Correct Answer
verified

Canada has two official languages,which are

Correct Answer
verified

Explain the trade feedback effect.

Correct Answer
verified
Increased demand for exports of other na...
View Answer

A joint venture entails

Correct Answer
verified

If you wanted to set up a business importing amber jewelry from Latvia to the United States,you would have to plan on paying the U.S.Customs Service a government tax of roughly 11 percent of the value of the product as a(n)

Correct Answer
verified

Direct investment in as a global market-entry strategy refers to

Correct Answer
verified

Exam 7: Understanding and Reaching Global Consumers and Markets

All of the following are advantages of licensing except which?

Correct AnswerverifiedShow Answer

The European Union is an economic and political union of ________ member countries that have eliminated most barriers to the free flow of products,services,capital,and labor across their borders.

Correct AnswerverifiedShow Answer

A brand marketed under the same name in multiple countries with similar and centrally coordinated marketing programs is referred to as a(n)

Correct AnswerverifiedShow Answer

Which type of exporting has the least amount of commitment and risk but will probably return the least profit?

Correct AnswerverifiedShow Answer

Which of the following statements concerning currency exchange rates is most accurate?

Correct AnswerverifiedShow Answer

The law,as amended by the International Anti-Dumping and Fair Competition Act,that makes it a crime for U.S.corporations to bribe an official of a foreign government or political party to obtain or retain business in a foreign country,is referred to as the

Correct AnswerverifiedShow Answer

Around the world,middle-class,youth,and elite markets that consume similar assortments of products and services,regardless of geographic location,are referred to as

Correct AnswerverifiedShow Answer

To eliminate the need to continually monitor currency exchange rates,16 of the countries in the European Union (EU) have adopted a common currency,which is called the

Correct AnswerverifiedShow Answer

Starbucks and Tata Global Beverage have together formed TATA Starbucks Limited in order to bring Starbucks to India.The global market entry strategy is known as

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The practice where a translated word or phrase is retranslated into the original language by a different interpreter to catch errors is referred to as

Correct AnswerverifiedShow Answer

Foreign countries with very low per capita incomes may still be attractive markets for some goods.To get a more reliable picture of a country's purchasing power,a country's ________ must also be considered.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The Foreign Corrupt Practices Act

Correct AnswerverifiedShow Answer

The EU has benefited its member nations in part because

Correct AnswerverifiedShow Answer

Canada has two official languages,which are

Correct AnswerverifiedShow Answer

Explain the trade feedback effect.

Correct AnswerverifiedIncreased demand for exports of other na...View AnswerShow Answer

A joint venture entails

Correct AnswerverifiedShow Answer

If you wanted to set up a business importing amber jewelry from Latvia to the United States,you would have to plan on paying the U.S.Customs Service a government tax of roughly 11 percent of the value of the product as a(n)

Correct AnswerverifiedShow Answer

Direct investment in as a global market-entry strategy refers to

Correct AnswerverifiedShow Answer

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Increased demand for exports of other na...
View Answer

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