Chapter 17 Global Marketing

Accessibility: Keyboard Navigation Blooms: Remember Difficulty: Easy Learning Objective: 17-01 Explain the components of global market assessments.. Accessibility: Keyboard Navigation Bl

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Global Marketing

Multiple Choice Questions

1 Which of the following refers to the increased flow of goods, services, people, technology, capital, information, and ideas around the world?

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Accessibility: Keyboard Navigation

Blooms: Remember

Difficulty: Easy

Learning Objective: 17-01 Explain the components of global market assessments.

Topic: 17-01 Assessing Global Markets

2 Which of the following is NOT a component of a country market assessment?

Topic: 17-01 Assessing Global Markets

3 Which of the following refers to the practice of selling a good in a foreign market at a price that is lower than its domestic price or below its cost?

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Blooms: Remember

Difficulty: Easy

Topic: 17-02 Analyzing the Political Environment

4 Which of the following is a form of trade sanction?

Blooms: Remember

Difficulty: Easy

5 The Republic of Rhodia recently tested a deadly nuclear missile despite international opposition Consequently, some of the nations in business alliance with Rhodia imposed a ban

on all goods imported from Rhodia Which of the following exemplifies the above scenario?

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Blooms: Apply

Difficulty: Moderate

6 Canada imposes 247% tariffs on dairy imports The main reason for that tariff is:

D To make imported dairy products less competitive compared to the domestic ones

The intention for imposing tariffs is to make imported goods more expensive and thus less competitive with domestic products

Blooms: Apply

Difficulty: Difficult

7 Which of the following is a component of the human development index (HDI)?

C Life expectancy at birth

The human development index (HDI) is a composite measure of three indicators of the quality

of life in different countries: life expectancy at birth, educational attainment, and whether the average incomes are sufficient to meet the basic needs of life in that country

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Blooms: Understand

Topic: 17-03 Analyzing the Economic Environment Using Metrics

8 In the context of country market assessment, which of the following factors include quota and tariff?

D Political

Four sets of factors are often used to assess a country's market: Political/Legal, Economic, Sociocultural, and Technology and infrastructure factors Quotas and tariffs are included under Political/Legal factors

9 The policies of a country aimed at restricting trade and global marketing are called:

C protectionist policies.

Policies aimed at restricting trade and global marketing are called protectionist policies

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Blooms: Remember

Difficulty: Easy

10 The policies of a country aimed at encouraging global trade and marketing are referred to as:

11 The penalties or restrictions imposed by one country over another country for importing and exporting of goods, services, and investments are called:

B trade sanctions.

Trade sanctions are penalties or restrictions imposed by one country over another country for importing and exporting goods, services, and investments In 2011, Canada imposed sweepingtrade sanctions on Libya because of escalating human rights abuses by the Libyan government

on its citizens

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Blooms: Remember

Difficulty: Easy

12 A form of trade sanction that prohibits trading with a certain country or trading in specific goods by the signatory countries is called a(n):

An embargo is a form of trade sanction that prohibits trading with a certain country or trading

in specific goods (e.g., oil embargo) by other signatory countries

Blooms: Remember

Difficulty: Easy

13 Canada restricts its allies from trading with Libya This type of restriction imposed by the government is known as a(n):

An embargo is a form of trade sanction that prohibits trading with a certain country or trading

in specific goods (e.g., oil embargo) by other signatory countries

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Difficulty: Easy

14 A tax levied by the government on a good imported into a country is called a(n):

Blooms: Remember

Difficulty: Easy

15 The tax levied by a government on imported goods to make them more expensive and lesscompetitive with domestic products is known as a(n):

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Difficulty: Easy

16 Which of the following designates the maximum quantity of a product that may be brought into a country during a specified time period?

eliminated in 2005, which reduced the cost of imported apparel products sold in Canada

Blooms: Remember

Difficulty: Easy

17 Which of the following can benefit domestically made products by reducing the

availability of imported merchandise?

Tariffs artificially raise prices and therefore lower demand, and quotas reduce the availability

of imported merchandise Conversely, tariffs and quotas benefit domestically made products because they reduce foreign competition

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Blooms: Remember

Difficulty: Easy

18 Which of the following, when levied on imported goods, artificially raises their price, thereby lowering their demand in the local markets?

Tariffs artificially raise prices and therefore lower demand, and quotas reduce the availability

of imported merchandise Conversely, tariffs and quotas benefit domestically made products because they reduce foreign competition

Blooms: Remember

Difficulty: Easy

19 Local retailers refusing to buy goods from a foreign textile firm in response to the firm's violation of labour laws is an example of a(n):

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20 The employees of a firm refusing to continue employment with a foreign firm or buy products from the firm on account of conflicts between the union and the employer is an example of a(n):

organizations, such as trade unions, human rights, or environmental groups

21 Which of the following is a measure of how much one currency is worth in relation to another?

Exchange rate refers to the measure of how much one currency is worth in relation to another

A designated agency in each country, often the central bank, sets the rules for currency

exchange

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Blooms: Remember

22 A country that accepts an extended period for the success of a new product introduction is likely to score high on:

Topic: 17-04 Analyzing Sociocultural Factors

23 The practice of firms offering standardized products globally and changing promotional campaigns geared to regional markets is referred to as:

B glocalization.

When firms offer standardized products globally and change promotional campaigns geared

to local markets, it is referred to as glocalization

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E Glocalization

When firms offer standardized products globally and change promotional campaigns geared

to local markets, it is referred to as glocalization

exemplifies the view mentioned in the above scenario?

C Cultural imperialism

Cultural imperialism refers to the belief that one's own culture is superior to that of other nations Cultural imperialism can take the form of an active, formal policy or a more subtle

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Blooms: Apply

Learning Objective: 17-05 Explain how ethical issues affect global marketing practices.

Topic: 17-19 Impact on Host Country Culture

26 Which of the following is an intergovernmental agreement designed to manage and promote trade activities for specific regions?

27 Which of the following is made up of countries that have signed a particular trade

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Blooms: Remember

Difficulty: Easy

28 Which of the following trade agreements represents the highest level of integration across individual nations?

Some major trade agreements cover two-thirds of the world's international trade: the

European Union (EU), the North American Free Trade Agreement (NAFTA), the Central America Free Trade Agreement (CAFTA), Mercosur, and the Association of Southeast Asian Nations (ASEAN) The European Union represents the highest level of integration across individual nations, whereas the other agreements vary in their integration levels

Blooms: Remember

Difficulty: Easy

29 The group of members who have signed a major agreement like the European Union can

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30 Which of the following countries is a member of the European Union?

The European Union (EU) represents the highest level of integration across individual

nations The following are the members of the EU: Austria, Belgium, Bulgaria, Cyprus, CzechRepublic, Denmark, Estonia, Finland, France, Germany, Greece

Blooms: Remember

31 Which of the following represents the trade agreement between Canada, Mexico, and the United States?

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Blooms: Remember

32 Canada is a member of:

B the North American Free Trade Agreement.

33 The trade agreement between Costa Rica, the Dominican Republic, El Salvador,

Guatemala, Honduras, Nicaragua, and the United States is called the:

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Blooms: Remember

34 Costa Rica and the Dominican Republic are members of:

35 When a foreign firm contracts with a local firm in the host market to produce a product, it

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37 Which of the following refers to the belief that one's own social behaviours and beliefs aresuperior to that of other nations?

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Blooms: Remember

Learning Objective: 17-05 Explain how ethical issues affect global marketing practices.

Topic: 17-19 Impact on Host Country Culture

38 Pizza Hut, Starbucks, and Domino's Pizza are examples of which of the following entry strategies?

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Blooms: Remember

Difficulty: Easy

40 Which of the following results when a country exports more goods than it imports?

Trade surplus results when a country exports more goods than it imports Firms would prefer

to manufacture in a country, such as Canada, that has a trade surplus because it signals a greater opportunity to export products to more markets

Blooms: Remember

Difficulty: Easy

41 Because it provides an opportunity to export to more markets, firms prefer to manufacture

in countries that have:

Trade surplus results when a country exports more goods than it imports Firms would prefer

to manufacture in a country, such as Canada, that has a trade surplus because it signals a greater opportunity to export products to more markets

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Blooms: Remember

Difficulty: Easy

42 Which of the following is defined as the market value of goods and services produced by

a country in a year?

E Gross domestic product

The gross domestic product (GDP) refers to the market value of the goods and services produced by a country in a year It is the most widely used standardized measure of output

Blooms: Remember

Difficulty: Easy

43 The theory that states that if the exchange rates of two countries are in equilibrium, a product purchased in one will cost the same in the other, expressed in the same currency is referred to as:

C purchasing power parity.

A frequently used measure of an overall economy is the purchasing power parity (PPP) It states that if the exchange rates of two countries are in equilibrium, a product purchased in one will cost the same in the other, expressed in the same currency

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Blooms: Remember

Difficulty: Easy

44 What does The Economist's Big Mac Index employ to assess the relative economic buying

power among nations?

A novel measure that employs PPP to assess the relative economic buying power among

nations is The Economist's Big Mac Index, which suggests that exchange rates should adjust

to equalize the cost of a basket of goods and services, wherever it is bought around the world

Blooms: Remember

Difficulty: Easy

45 Which of the following is a composite measure of life expectancy at birth, educational attainment, and whether the average incomes are sufficient to meet basic needs of life in a country?

The human development index (HDI) is a composite measure of three indicators of the quality

of life in different countries: life expectancy at birth; educational attainment; and whether the average incomes, according to PPP estimates, are sufficient to meet the basic needs of life in that country

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Blooms: Remember

Difficulty: Easy

46 According to Geert Hofstede, the dimension of power distance refers to:

in daily life

E the willingness to accept social inequality as natural.

According to Geert Hofstede's cultural dimensions concept, power distance refers to the willingness to accept social inequality as natural

Blooms: Remember

Difficulty: Easy

47 Which of the following is the extent to which the society relies on orderliness,

consistency, structure, and formalized procedures to address situations that arise in daily life?

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Blooms: Remember

Difficulty: Easy

48 According to Geert Hofstede, the dimension of individualism refers to:

in daily life

B the perceived obligation to and dependence on groups.

According to Geert Hofstede's cultural dimensions concept, individualism refers to the

perceived obligation to and dependence on groups

Blooms: Remember

Difficulty: Easy

49 The dimension of culture that refers to the extent to which the dominant values in a society are male oriented is called:

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Blooms: Remember

Difficulty: Easy

50 Which of the following factors of Geert Hofstede's cultural dimensions concept have to beconsidered by firms when they conduct a sociocultural analysis of a country's market?

individualism, masculinity, and time orientation

Blooms: Remember

Difficulty: Easy

51 Joe really wants to buy a luxury car for himself and he can afford it He knows that his family's perception of luxury cars is "waste of money" He ends up buying a Honda CRV, which is considered as a good utilitarian car Which dimension of Hofstede's framework is likely to influence Joe's decision?

A Individualism

Individualism dimension refer to perceived obligation to and dependence on groups Here, the

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Blooms: Apply

Difficulty: Difficult

52 Which of the following is best defined as the basic facilities, services, and installations needed for a community or society to function?

Infrastructure refers to the basic facilities, services, and installations needed for a community

or society to function, such as transportation and communications systems, water and power lines, and public institutions such as schools, post offices, and prisons

Blooms: Remember

Difficulty: Easy

Topic: 17-05 Analyzing Technology and Infrastructure Capabilities

53 Which of the following is NOT a key element of a country's infrastructure?

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Blooms: Remember

Topic: 17-05 Analyzing Technology and Infrastructure Capabilities

54 India is an attractive market for many companies, for the following reasons EXCEPT:

C It has a modern supply chain management

India lacks modern supply chain management facilities and systems

Learning Objective: 17-02 Understand the marketing opportunities in BRIC countries.

Topic: 17-06 The Appeal of the BRIC Countries

55 Which of the following approaches involves producing goods in one country and selling them in another?

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Blooms: Remember

Learning Objective: 17-03 Describe the various global market entry strategies.

Topic: 17-08 Exporting

57 Which of the following is an example of indirect exporting?

producing a product

India

C A South Korean electronics firm selling its televisions through a local electronics retailer in

the host country

produce and market goods in that country

product in the local Japanese market

Exporting may take two forms: indirect or direct Indirect exporting occurs when the

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Blooms: Apply

Learning Objective: 17-03 Describe the various global market entry strategies.

Topic: 17-08 Exporting

59 Which of the following is an example of direct exporting?

by licensing its technology

India

D A kitchen boutique sells its kitchen appliances in the host country by using its own retail

outlets

produce and market goods in that country

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Most fast food and coffee shops use franchise as a mode of entry.

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63 A popular fast-food chain decides to enter a foreign market by allowing a local food chain

to produce and market its products in return for a fee This type of entry strategy is known as:

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