Question 1

Which of the following statements about the World Trade Organization (WTO) is most accurate?

Accepted Answer

A)   The World Trade Organization is a temporary institution.
B)   The 28 member countries of the WTO account for less than 25 percent of world trade.
C)   The WTO sets rules governing trade between its members and the rest of the world.
D)   The WTO uses panels of trade experts who can issue only nonbinding recommendations.
E)   The WTO was formed by the major industrialized nations of the world.F) A) and C)
G) A) and B)

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 distributionF) A) and E)
G) A) and C)

Question 3

When foreign currencies can buy more U.S.dollars,

Accepted Answer

A)   U.S. products are more expensive to foreign customers.
B)   U.S. products are more expensive to U.S. customers.
C)   U.S. products are less expensive to foreign customers.
D)   economists consider it an indicator of an impending long-term economic upturn.
E)   American consumers will buy in large quantities and stockpile in fear of an impending economic crisis.F) A) and C)
G) A) and E)

Question 4

Even though there are hundreds of different languages and dialects,the three major languages used in global diplomacy and commerce are

Accepted Answer

A)   English, Japanese, and Chinese.
B)   English, French, and Spanish.
C)   Japanese, Spanish, and French.
D)   Japanese, Spanish, and English.
E)   Spanish, English, and Chinese.F) B) and E)
G) B) and D)

Question 5

Three types of companies populate and compete in the global marketplace.Identify and describe each type.

Accepted Answer

All three types of global companies empl...

Question 6

One advantage of direct investment when entering a new global market is that

Accepted Answer

A)   intermediaries have the potential to harm the brand.
B)   the firm entering the foreign market does not have to pay royalties to the government.
C)   the company forgoes control over its product.
D)   the firm gains and uses a better understanding of local market conditions.
E)   this method is likely to provide the fewest subsidies from the host country's government.F) All of the above
G) B) and C)

Question 7

Global companies have five strategies for matching products and their promotion efforts to global markets.The strategy of selling virtually the same product in other countries is referred to as

Accepted Answer

A)   product adaptation.
B)   product invention.
C)   brand adaptation.
D)   product extension.
E)   product integration.F) B) and C)
G) D) and E)

Question 8

An estimated 10 to 15 percent of world trade involves __________,the practice of using barter rather than money for making global sales.

Accepted Answer

A)   tariffs
B)   countertrade
C)   the balance of trade
D)   trade feedback
E)   market tradingF) A) and D)
G) All of the above

Question 9

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

Accepted Answer

A)   11
B)   16
C)   20
D)   28
E)   32F) D) and E)
G) None of the above

Question 10

Nescafé coffee is marketed using different coffee blends and promotional campaigns to match consumer preferences in different countries.For example,Nescafé generally emphasizes the taste,aroma,and warmth of shared moments in its advertising around the world.However,in Thailand,Nescafé is advertised as a way to relax from the pressures of daily life.This is an example of which type of global marketing product and promotion strategy?

Accepted Answer

A)   product extension
B)   product customization
C)   product adaptation
D)   dual adaptation
E)   dual integrationF) A) and E)
G) A) and D)

Question 11

Which of the following statements about the dynamics of world trade is most accurate?

Accepted Answer

A)   Manufactured products and commodities account for only 25 percent of world trade.
B)   Services such as telecommunications, transportation, and banking accounts are not included in calculations of world trade.
C)   The United States has replaced China as the biggest country in terms of world trade.
D)   All nations participate equally in world trade.
E)   Dollar value of world trade has more than doubled in the past decade.F) None of the above
G) B) and C)

Question 12

Personally or socially preferable modes of conduct or states of existence that tend to persist over time are referred to as

Accepted Answer

A)   customs.
B)   ethics.
C)   values.
D)   culture.
E)   beliefs.F) B) and C)
G) B) and E)

Question 13

A(n) __________ firm engages in trade and marketing in different countries as an extension of the marketing strategy in its home country.

Accepted Answer

A)   multidomestic
B)   meganational
C)   international
D)   multinational
E)   transnationalF) B) and D)
G) None of the above

Question 14

Which of the following statements about the World Trade Organization (WTO) is most accurate?

Accepted Answer

A)   The WTO acts as an agent in trade negotiations between its members and the remainder of the world.
B)   The 179 member countries of the WTO account for less than 25 percent of world trade.
C)   The WTO was formed by the major industrialized nations in 1995 to address trade issues.
D)   The WTO uses panels of trade experts who can issue nonbinding recommendations.
E)   The WTO was formed by the United Nations.F) All of the above
G) C) and D)

Question 15

When a country's exports exceed its imports,

Accepted Answer

A)   it incurs a deficit in its balance of trade.
B)   the result is the trade feedback effect.
C)   it will try to rebalance its overall economy.
D)   it will attempt to engage in a trade war.
E)   it incurs a surplus in its balance of trade.F) A) and E)
G) A) and B)

Question 16

As a general rule,a product __________ strategy seems to work best when the consumer target market for the product is alike across countries and cultures-that is,consumers share the same desires,needs,and use for the product.

Accepted Answer

A)   adaptation
B)   extension
C)   integration
D)   invention
E)   customizationF) None of the above
G) A) and E)

Question 17

Which of the following statements about bribery is most accurate?

Accepted Answer

A)   Bribes, kickbacks, and payoffs offered to entice someone to commit an illegal or improper act are deemed corrupt in some cultures but not in others.
B)   The world's major exporting nations have agreed to treat bribery of foreign government officials as a violation of trade agreements.
C)   Bribes paid to foreign companies are in some cases a tax-deductible expense in the United States.
D)   It is a crime for U.S. corporations to bribe an official of a foreign government or political party unless preapproved by the Federal Trade Commission.
E)   It is illegal for a U.S. corporation to bribe an official of a foreign government or political party to obtain or retain business in a foreign country.F) None of the above
G) A) and B)

Question 18

A country's communications,transportation,financial,and distribution systems are considered to be its

Accepted Answer

A)   capital improvements.
B)   fixed-asset base.
C)   economic infrastructure.
D)   geopolitical wealth.
E)   asset wealth.F) All of the above
G) B) and E)

Question 19

Fluctuations in the __________ among the world's currencies have direct impact on the sales and profits made by global companies.

Accepted Answer

A)   production costs
B)   transportation
C)   reciprocity
D)   economic infrastructure
E)   exchange ratesF) A) and B)
G) A) and C)

Question 20

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 countryF) C) and E)
G) A) and E)

Exam 6: Understanding and Reaching Global Consumers and Markets

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

Correct Answer
verified

All of the following are advantages of licensing except which?

Correct Answer
verified

A country's communications,transportation,financial,and distribution systems are considered to be its

Correct Answer
verified

Which of the following statements about the World Trade Organization (WTO) is most accurate?

Correct Answer
verified

Personally or socially preferable modes of conduct or states of existence that tend to persist over time are referred to as

Correct Answer
verified

Three types of companies populate and compete in the global marketplace.Identify and describe each type.

Correct Answer
verified
All three types of global companies empl...
View Answer

One advantage of direct investment when entering a new global market is that

Correct Answer
verified

Correct Answer
verified

When foreign currencies can buy more U.S.dollars,

Correct Answer
verified

Global companies have five strategies for matching products and their promotion efforts to global markets.The strategy of selling virtually the same product in other countries is referred to as

Correct Answer
verified

As a general rule,a product __________ strategy seems to work best when the consumer target market for the product is alike across countries and cultures-that is,consumers share the same desires,needs,and use for the product.

Correct Answer
verified

An estimated 10 to 15 percent of world trade involves __________,the practice of using barter rather than money for making global sales.

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

Even though there are hundreds of different languages and dialects,the three major languages used in global diplomacy and commerce are

Correct Answer
verified

Fluctuations in the __________ among the world's currencies have direct impact on the sales and profits made by global companies.

Correct Answer
verified

A(n) __________ firm engages in trade and marketing in different countries as an extension of the marketing strategy in its home country.

Correct Answer
verified

When a country's exports exceed its imports,

Correct Answer
verified

Which of the following statements about bribery is most accurate?

Correct Answer
verified

Which of the following statements about the dynamics of world trade is most accurate?

Correct Answer
verified

Which of the following statements about the World Trade Organization (WTO) is most accurate?

Correct Answer
verified

Exam 6: Understanding and Reaching Global Consumers and Markets

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

Correct AnswerverifiedShow Answer

All of the following are advantages of licensing except which?

Correct AnswerverifiedShow Answer

A country's communications,transportation,financial,and distribution systems are considered to be its

Correct AnswerverifiedShow Answer

Which of the following statements about the World Trade Organization (WTO) is most accurate?

Correct AnswerverifiedShow Answer

Personally or socially preferable modes of conduct or states of existence that tend to persist over time are referred to as

Correct AnswerverifiedShow Answer

Three types of companies populate and compete in the global marketplace.Identify and describe each type.

Correct AnswerverifiedAll three types of global companies empl...View AnswerShow Answer

One advantage of direct investment when entering a new global market is that

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

When foreign currencies can buy more U.S.dollars,

Correct AnswerverifiedShow Answer

Global companies have five strategies for matching products and their promotion efforts to global markets.The strategy of selling virtually the same product in other countries is referred to as

Correct AnswerverifiedShow Answer

As a general rule,a product __________ strategy seems to work best when the consumer target market for the product is alike across countries and cultures-that is,consumers share the same desires,needs,and use for the product.

Correct AnswerverifiedShow Answer

An estimated 10 to 15 percent of world trade involves __________,the practice of using barter rather than money for making global sales.

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

Even though there are hundreds of different languages and dialects,the three major languages used in global diplomacy and commerce are

Correct AnswerverifiedShow Answer

Fluctuations in the __________ among the world's currencies have direct impact on the sales and profits made by global companies.

Correct AnswerverifiedShow Answer

A(n) __________ firm engages in trade and marketing in different countries as an extension of the marketing strategy in its home country.

Correct AnswerverifiedShow Answer

When a country's exports exceed its imports,

Correct AnswerverifiedShow Answer

Which of the following statements about bribery is most accurate?

Correct AnswerverifiedShow Answer

Which of the following statements about the dynamics of world trade is most accurate?

Correct AnswerverifiedShow Answer

Which of the following statements about the World Trade Organization (WTO) is most accurate?

Correct AnswerverifiedShow Answer

Correct Answer
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verified
All three types of global companies empl...
View Answer

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verified

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