1 The process that involves the study of similarities and differences among consumers in two or more nations or societies is called: 2 3 4 5 cross-cultural analysis. Correct cross-cultural analysis. The primary function of the General Agreement on Tariffs and Trade (GATT) has been to limit trade barriers and promote world trade through the: reduction of tariffs. Correct reduction of tariffs. Mattel successfully markets its best-selling Barbie, Hot Wheels, and Fisher- Price brands in more than 150 countries. Today, Mattel markets as much as percent of its product offerings to a global audience, with just percent geared to individual country markets. 80, 20. Correct 80, 20. A country's communication, transportation, financial, and distribution systems are considered its: economic infrastructure. Correct economic infrastructure. The tendency to believe it is inappropriate, indeed immoral, to purchase a foreign-made product is called: 6 consumer ethnocentrism. Correct consumer ethnocentrism.
is the phenomenon in which a country's imports affect its exports and its exports affect its imports. 7 8 9 10 Trade feedback effect Correct Trade feedback effect The Japanese manufacture tractors for rice paddies. They are smaller than most Canadian tractors and perfect for a weekend farmer who wants to tend to a small garden. The tractors are not sold in the Canadian through any authorized channels, yet they are available in Canada at prices below the manufacturer's suggested retail price. What is the term for how these tractors are being sold? on the gray market Correct on the gray market Nine out of every 10 diamonds sold in the world pass through India, making diamonds that country's largest export at $6.6 billion a year. One of the reasons for its success is the nation's 2,500 trading firms, its banks, airlines, customers' offices, and courier services that make sure the diamonds are safely delivered. Most of these are members of the diamond trading bourse in Bombay. According to Michael Porter's theory about national competitive advantage, India's success in the diamond industry is due in part to its: related and supporting industries. Correct related and supporting industries. The difference between the monetary value of a nation's exports and imports is called its: balance of trade. Correct balance of trade. A graphical representation of Michael Porter's elements which create a nation's competitive advantage looks like a:
11 12 13 14 15 diamond. Correct diamond. Theodore Levitt wrote a book titled The Marketing Imagination. In the book, Levitt argues that consumers the world over are becoming very similar in their wants and behaviours. Levitt asserts marketers should standardize their marketing strategies and activities in order to benefit from economies of scale. Levitt is encouraging marketers to adopt a(n) marketing strategy. global Correct global Direct eye contact is viewed positively in North and Latin America, but viewed negatively in Japan. This is an example of: customs. Correct customs. A country's economic infrastructure consists of all of the following EXCEPT: political system. Correct political system. A(n) is the price of one country's currency expressed in terms of another country's currency. currency exchange rate Correct currency exchange rate When the Malaysian government exchanged 20,000 tons of rice for an equivalent amount of Philippine corn, this was an example of: a countertrade.
16 17 18 19 20 Correct a countertrade. Thirteen to nineteen year olds in Europe, North and South America and the industrialized nations of Asia: Correct are more similar than different regarding their purchase behaviour. are more similar than different regarding their purchase behaviour. If you were responsible for marketing communications at a company that manufactures office supplies and had to provide product literature to be distributed in France, you would be wise to use, whereby you have someone to translate your literature from American English into French, and then have someone else in France translate the French into American English. back translation Correct back translation The is an international treaty intended to limit trade barriers and promote world trade through the reduction of tariffs. General Agreement on Tariffs and Trade (GATT) Correct General Agreement on Tariffs and Trade (GATT) A joint venture in international marketing is: Correct when a foreign company and a local firm invest together to create a local business. when a foreign company and a local firm invest together to create a local business. McDonnell Douglas sold airplanes in Eastern Europe in exchange for canned hams and tools. This exchange was an example of:
21 22 a countertrade. Correct a countertrade. Every country engages in some form of protectionism. However, protectionism has declined internationally over the past 50 years due in large part to the: General Agreement on Tariffs and Trade (GATT). Correct General Agreement on Tariffs and Trade (GATT). in a country is directly affected by numerous factors including the government's orientation toward foreign companies and trade with other countries. 23 Political stability Correct Political stability The trade feedback effect is one argument for: 24 25 free trade agreements. Correct free trade agreements. Companies, which contract with a foreign firm to manufacture products according to stated specifications are using: contract manufacturing. Correct contract manufacturing. Four major trends affecting world trade in the early 21st century are a gradual decline in economic protectionism exercised by individual countries, global competition among global companies for global customers, the emergence of networked global marketspace, and:
formal integration and free trade among nations. Correct formal integration and free trade among nations. Sumer 2009 1 0 out of 1 points Which of the following is a disadvantage associated with licensing? 2 3 Correct creates its own competition lower wages and prices Lower wages and prices are not a disadvantage to licensing arrangements with foreign firms. Licensing decreases profit potential and gives the company no control over its product, which is why a poor choice in licensee can create a poor image for product. Canada's, is valued at almost $1 trillion, which is the monetary value of all goods and services produced in a country during one year. Correct gross domestic product (GDP) gross domestic product (GDP) Key term definition - gross domestic product The importation of cheap, short-barreled guns into the United States is prohibited, but the sale of those guns is legal. As a result Beretta, the Italian gun manufacturer and a maker of cheap, short-barreled guns, opened its own manufacturing plant in Maryland. Beretta engaged in: 4 Correct direct investment. direct investment. Beretta invested in and owns a foreign manufacturing plant.
KFC in Japan sells tempura crispy strips. In northern England, it stresses gravy and potatoes, while in Thailand it offers fresh rice. In Holland, instead of potatoes, KFC offers customers a potato and onion croquette. In France, KFC sells pastries alongside its chicken. KFC exhibits an understanding of and appreciation for the of other societies. 5 6 7 Correct customs customs KFC serves food that suits the tastes of its target markets in each of the countries listed. The Japanese manufacture tractors for rice paddies. They are smaller than most Canadian tractors and perfect for a weekend farmer who wants to tend to a small garden. The tractors are not sold in the Canadian through any authorized channels, yet they are available in Canada at prices below the manufacturer's suggested retail price. What is the term for how these tractors are being sold? Correct on the gray market on the gray market Gray marketing is a situation where products are bought in a lower-priced country from a manufacturer's authorized reseller, shipped to higher-priced countries, and sold through unauthorized channels of distribution below the manufacturer's suggested retail price. 0 out of 1 points Fran Wilson Creative Cosmetics sells its Moodmatcher lipstick through Japanese distributors that reach Japan's beauty salons. This is an example of: Correct direct exporting. indirect exporting. In international marketing the product strategy of selling virtually the same product in other countries is called product extension strategy. Three types of companies populate and compete in the global marketplace: international firms, multinational firms, and firms. transnational
Correct transnational 8 9 10 11 An international firm engages in trade as an extension of the marketing strategy in its home country, a multinational firm markets to each part of the world differently, and a transnational firm emphasizes similarities across countries. To become leaders in the world market, countries need related and supporting industries because: Correct clusters of strong suppliers can accelerate innovation. clusters of strong suppliers can accelerate innovation. Firms and industries seeking leadership in global markets need clusters of world-class suppliers that accelerate innovation. A firm that views the world as consisting of unique parts and markets to each part differently is called a(n): Correct firm. firm. multinational multinational Text term definition - multinational firm If you were responsible for marketing communications at a company that manufactures office supplies and had to provide product literature to be distributed in France, you would be wise to use, whereby you have someone to translate your literature from American English into French, and then have someone else in France translate the French into American English. Correct back translation back translation Key term definition - back translation Although there are many factors contributing to the success of major global marketers, a common theme seems to be that they:
12 13 14 15 Correct first succeeded in intense domestic competition. first succeeded in intense domestic competition. While the strategies employed by the most successful global competitors have been different in many respects, a common theme has emerged - a firm that succeeds in global markets has first succeeded in intense domestic competition. Which of the following is an element of company strategy, structure, and rivalry? Correct See Figure 7-2. intensity of competition all of these answers are correct The U.S. motorcycle manufacturer Harley-Davidson uses intermediaries to sell its motorcycles in numerous nations outside the U.S. Harley-Davidson uses: Correct indirect exporting. indirect exporting. 0 out of 1 points Indirect exporting occurs when a firm sells its domestically produced goods in a foreign country through an intermediary. Two variations on licensing are: Correct contract manufacturing and contract assembly. contract manufacturing and contract assembly. Two variations on licensing, local manufacturing and local assembly represent alternative ways to produce a product within the foreign country. In international marketing, a restriction placed on the amount of a product allowed to enter or leave a country is called a: quota.
16 17 18 19 Correct quota. Key term definition - quota Mattel successfully markets its best-selling Barbie, Hot Wheels, and Fisher-Price brands in more than 150 countries. Mattel sells one Barbie every somewhere in the world. Correct 3 seconds 3 seconds Mattel sells one Barbie every 3 seconds somewhere in the world. Which of the following issues raises a question about the ethics of protectionism? Correct Regional trade agreements provide preferential treatment for member nations. Regional trade agreements provide preferential treatment for member nations. Protectionism, in its many forms, raises an interesting global ethical question: is protectionism, no matter how applied, an ethical practice? Of the statements above, the possibility of preferential treatment is most likely to suggest an ethical consideration. Companies that use a(n) marketing strategy have as many different product variations, brand names, and advertising programs as countries in which they do business. Correct multidomestic multidomestic Key term definition - multidomestic marketing strategy Even though there are hundreds of different languages and dialects, the three major languages used in global diplomacy and commerce are: English, French, and Spanish.
20 21 Correct English, French, and Spanish. English, French, and Spanish are the principal languages used in global diplomacy and commerce. However, the best language to communicate with consumers is their own. Michael Porter has identified four key elements in a nation's competitive advantage. They are factor conditions; demand conditions; company strategy, structure, and rivalry; and: Correct related and supporting industries. related and supporting industries. Harvard Business School Professor Michael Porter suggests a diamond of four elements (factor conditions, related industries, demand conditions, and company strategy) to explain a nation's competitive advantage. Theodore Levitt wrote a book titled The Marketing Imagination. In the book, Levitt argues that consumers the world over are becoming very similar in their wants and behaviours. Levitt asserts marketers should standardize their marketing strategies and activities in order to benefit from economies of scale. Levitt is encouraging marketers to adopt a(n) marketing strategy. Correct global global 22 23 Levitt encourages marketers to standardize their marketing activities in order maximize efficiency - in other words, to adopt a global marketing strategy. A nation's ability to turn its natural resources, education, and infrastructure into a competitive advantage is reflected in: Correct factor conditions. factor conditions. Text term definition - factor conditions KFC in Japan altered the sweetness of its coleslaw to appeal to Japanese tastes. This is an example of which type of international product strategy?
24 25 Correct product adaptation product adaptation Changing a product in some way to make it more appropriate for a country's climate or preferences is an example of adaptation. The three largest importers of Canadian goods and services are: Correct The United States, Japan, and the European Union. The United States, Japan, and the European Union. These countries are the largest importers of Canadian goods. Which of the following statements about Michael Porter's theory about national competitive advantage is true? Correct All of these statements about Michael Porter's theory about national competitive advantage are true. All of these statements about Michael Porter's theory about national competitive advantage are true. All of the statements about Porter's theory are true and discussed in the section, Competitive Advantage of Nations.