Question 1

Which of the following is a disadvantage associated with licensing?

Accepted Answer

A)  The licensee pays lower wages and sells at lower prices.
B)  The licensor may create its own competition.
C)  The foreign government dislikes it because it does not increase local employment.
D)  This is the most expensive and risky method for global expansion.
E)  The firm's brand does not get international exposureF) A) and D)
G) A) and B)

Question 2

Yum! Brands, the restaurant division of PepsiCo, has 12,600 KFC restaurants abroad, with more than 3,700 restaurants in China. Many of the latter are locally owned and subject to a contractual agreement that allows the owners to operate the business under the established KFC brand name and according to specific rules. Yum! Brands is engaged in

Accepted Answer

A)  contract assembly.
B)  a joint venture.
C)  contract manufacturing.
D)  a partnership.
E)  franchising.F) A) and B)
G) A) and D)

Question 3

Five trends in the past decade have significantly influenced the landscape of global marketing. One of them is

Accepted Answer

A)  an increase in most countries' GDPs coupled with an increased degree of consumer ethnocentrism.
B)  a significant increase in economic protectionism and a decline in free trade.
C)  a more aggressive attitude toward initiating international tariffs and quota systems.
D)  a decrease in most countries' GDPs and a renewal of nationalism.
E)  a decline in economic protectionism by individual countries.F) B) and C)
G) B) and E)

Question 4

Define a currency exchange rate and discuss its importance to global companies.

Accepted Answer

Fluctuations in exchange rates among the...

Question 5

All of the following are advantages of licensing EXCEPT:

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 low risk to the company granting the license.
D)  the licensor's brand name can never be harmed as a result of the licensee.
E)  the capital-free entry into a foreign country.F) None of the above
G) B) and E)

Question 6

Economic infrastructure refers to

Accepted Answer

A)  a nation's military-industrial complex.
B)  a country's governmental services.
C)  the people and the wealth of a nation.
D)  a country's communications, transportation, financial, and distribution systems.
E)  all of a country's natural resources, whether or not they are currently being exploited.F) All of the above
G) None of the above

Question 7

All of the following are disadvantages of licensing EXCEPT:

Accepted Answer

A)  the licensor reduces its potential profits gained from product sales.
B)  the foreign country gains employment by having the product manufactured locally.
C)  the licensor forgoes control of its product.
D)  should the licensee prove to be a poor choice, the name or reputation of the company may be harmed.
E)  the licensor may be creating its own competition.F) D) and E)
G) None of the above

Question 8

Economic espionage is the clandestine collection of trade secrets or __________.

Accepted Answer

A)  government economic information
B)  industrial intelligence
C)  government weapons information
D)  banking lists
E)  proprietary information about competitorsF) B) and C)
G) A) and E)

Question 9

Since global marketing is affected by economic considerations, a scan of the global marketplace should include which of the following factors?

Accepted Answer

A)  recognition of a country's currency exchange rates
B)  an analysis of cultural diversity within the country under consideration
C)  regulatory constraints regarding contracts, mergers, and partnerships
D)  an assessment of language differences including dialect variation
E)  political and ideological differences between the countries involvedF) D) and E)
G) B) and D)

Question 10

When a U.S. airplane manufacturer sells its airplanes to business executives in Germany without using intermediaries, it is referred to as

Accepted Answer

A)  direct exporting.
B)  indirect exporting.
C)  licensing.
D)  foreign manufacturing.
E)  foreign assembly.F) A) and D)
G) A) and E)

Question 11

Once a company has decided to enter the global marketplace, it must select a means of market entry. Four general options exist: (1)  exporting; (2)  __________; (3)  joint venture; and (4)  direct investment.

Accepted Answer

A)  macrofinancing
B)  microfinancing
C)  franchising
D)  licensing
E)  collateral ventureF) None of the above
G) A) and E)

Question 12

A joint venture 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 fee.
B)  contracting with a foreign firm to manufacture products according to certain specifications.
C)  when a foreign company and a local firm invest 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.F) B) and D)
G) A) and E)

Question 13

A Tokyo shopkeeper would have been wise to use __________ to verify the accuracy of the new sign in English he purchased for his dry cleaning business. The sign read, "Drop your pants here for best results," which he did not know had another suggestive meaning to native speakers.

Accepted Answer

A)  cultural symbolism
B)  dialect transformation
C)  semantic analysis
D)  linguistic exchange
E)  back translationF) None of the above
G) B) and E)

Question 14

The reverence that Japan shows towards its elderly is an example of that nation's __________.

Accepted Answer

A)  values
B)  beliefs
C)  customs
D)  religion
E)  cultural diversityF) B) and E)
G) A) and B)

Question 15

Which form of entry into a global market makes a firm the most vulnerable to harm regarding its brand name or reputation?

Accepted Answer

A)  direct exporting
B)  indirect exporting
C)  licensing
D)  direct investment
E)  joint ventureF) A) and C)
G) A) and B)

Question 16

Another term for a gray market is

Accepted Answer

A)  equivalent exporting.
B)  back-channel market.
C)  mature marketing.
D)  parallel importing.
E)  transparent market.F) B) and D)
G) A) and C)

Question 17

A global market-entry strategy in which a company produces goods in one country and sells them in another country is referred to as __________.

Accepted Answer

A)  exporting
B)  direct investment
C)  countertrade
D)  licensing
E)  multinational marketingF) A) and B)
G) None of the above

Question 18

Global competition exists when

Accepted Answer

A)  a firm produces and markets its products domestically rather than globally.
B)  firms originate, produce, and market their products and services worldwide.
C)  two firms from two different countries compete for market share in a single domestic market.
D)  two or more firms from different nations combine their resources to market products in a single domestic market.
E)  the firm from one nation dominates the market for its product in every nation.F) A) and B)
G) A) and E)

Question 19

Since global marketing is affected by economic considerations, a scan of the global marketplace should include which of the following factors?

Accepted Answer

A)  an analysis of cultural diversity within the country under consideration
B)  regulatory constraints regarding contracts, mergers, and partnerships
C)  an assessment of language differences including dialect variation
D)  political and ideological differences between the countries involved
E)  an assessment of the economic infrastructure in the involved countriesF) B) and E)
G) B) and D)

Question 20

Two-thirds of the commercial transactions in Russia involve non-monetary forms of payment due to limits in formal operating procedures among financial institutions and even limits on the notion of private property there. These would best be described as constraints in the country's __________.

Accepted Answer

A)  capital infrastructure
B)  political infrastructure
C)  economic infrastructure
D)  geopolitical system
E)  financial exchange systemF) A) and E)
G) B) and E)

Exam 6: Understanding and Reaching Global Consumers and Markets

All of the following are advantages of licensing EXCEPT:

Correct Answer
verified

All of the following are disadvantages of licensing EXCEPT:

Correct Answer
verified

Another term for a gray market is

Correct Answer
verified

Which form of entry into a global market makes a firm the most vulnerable to harm regarding its brand name or reputation?

Correct Answer
verified

When a U.S. airplane manufacturer sells its airplanes to business executives in Germany without using intermediaries, it is referred to as

Correct Answer
verified

The reverence that Japan shows towards its elderly is an example of that nation's __________.

Correct Answer
verified

Correct Answer
verified

Economic espionage is the clandestine collection of trade secrets or __________.

Correct Answer
verified

A global market-entry strategy in which a company produces goods in one country and sells them in another country is referred to as __________.

Correct Answer
verified

Since global marketing is affected by economic considerations, a scan of the global marketplace should include which of the following factors?

Correct Answer
verified

Once a company has decided to enter the global marketplace, it must select a means of market entry. Four general options exist: (1) exporting; (2) __________; (3) joint venture; and (4) direct investment.

Correct Answer
verified

Global competition exists when

Correct Answer
verified

Five trends in the past decade have significantly influenced the landscape of global marketing. One of them is

Correct Answer
verified

Define a currency exchange rate and discuss its importance to global companies.

Correct Answer
verified
Fluctuations in exchange rates among the...
View Answer

A joint venture refers to

Correct Answer
verified

Two-thirds of the commercial transactions in Russia involve non-monetary forms of payment due to limits in formal operating procedures among financial institutions and even limits on the notion of private property there. These would best be described as constraints in the country's __________.

Correct Answer
verified

Economic infrastructure refers to

Correct Answer
verified

Since global marketing is affected by economic considerations, a scan of the global marketplace should include which of the following factors?

Correct Answer
verified

Which of the following is a disadvantage associated with licensing?

Correct Answer
verified

A Tokyo shopkeeper would have been wise to use __________ to verify the accuracy of the new sign in English he purchased for his dry cleaning business. The sign read, "Drop your pants here for best results," which he did not know had another suggestive meaning to native speakers.

Correct Answer
verified

Exam 6: Understanding and Reaching Global Consumers and Markets

All of the following are advantages of licensing EXCEPT:

Correct AnswerverifiedShow Answer

All of the following are disadvantages of licensing EXCEPT:

Correct AnswerverifiedShow Answer

Another term for a gray market is

Correct AnswerverifiedShow Answer

Which form of entry into a global market makes a firm the most vulnerable to harm regarding its brand name or reputation?

Correct AnswerverifiedShow Answer

When a U.S. airplane manufacturer sells its airplanes to business executives in Germany without using intermediaries, it is referred to as

Correct AnswerverifiedShow Answer

The reverence that Japan shows towards its elderly is an example of that nation's __________.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Economic espionage is the clandestine collection of trade secrets or __________.

Correct AnswerverifiedShow Answer

A global market-entry strategy in which a company produces goods in one country and sells them in another country is referred to as __________.

Correct AnswerverifiedShow Answer

Since global marketing is affected by economic considerations, a scan of the global marketplace should include which of the following factors?

Correct AnswerverifiedShow Answer

Once a company has decided to enter the global marketplace, it must select a means of market entry. Four general options exist: (1) exporting; (2) __________; (3) joint venture; and (4) direct investment.

Correct AnswerverifiedShow Answer

Global competition exists when

Correct AnswerverifiedShow Answer

Five trends in the past decade have significantly influenced the landscape of global marketing. One of them is

Correct AnswerverifiedShow Answer

Define a currency exchange rate and discuss its importance to global companies.

Correct AnswerverifiedFluctuations in exchange rates among the...View AnswerShow Answer

A joint venture refers to

Correct AnswerverifiedShow Answer

Two-thirds of the commercial transactions in Russia involve non-monetary forms of payment due to limits in formal operating procedures among financial institutions and even limits on the notion of private property there. These would best be described as constraints in the country's __________.

Correct AnswerverifiedShow Answer

Economic infrastructure refers to

Correct AnswerverifiedShow Answer

Since global marketing is affected by economic considerations, a scan of the global marketplace should include which of the following factors?

Correct AnswerverifiedShow Answer

Which of the following is a disadvantage associated with licensing?

Correct AnswerverifiedShow Answer

A Tokyo shopkeeper would have been wise to use __________ to verify the accuracy of the new sign in English he purchased for his dry cleaning business. The sign read, "Drop your pants here for best results," which he did not know had another suggestive meaning to native speakers.

Correct AnswerverifiedShow Answer

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Fluctuations in exchange rates among the...
View Answer

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