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1 | |
Which of the following trends have significantly affected world trade? : |
| | A) | Predatory pricing between companies within a country |
| | B) | Development of networked global marketspace |
| | C) | Cross-cultural student exchange |
| | D) | Economic adaptation and control |
| | E) | redefined national boundaries and a more aggressive attitude towards initiating international tariffs and quota systems |
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2 | |
Which of the following statements about the North American Free Trade Agreement (NAFTA) is true? |
| | A) | NAFTA has stimulated trade flows among its member nations as well as cross-border manufacturing and investment. |
| | B) | NAFTA includes all of the countries in North America from Canada in the north to Panama in the south. |
| | C) | The World Trade Organization oversees the operation of NAFTA. |
| | D) | NAFTA standardized tariffs but did not eliminate them. |
| | E) | All of the above statements about the North American Free Trade Agreement (NAFTA) are true. |
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3 | |
The economic argument for protectionism is that it: |
| | A) | protects a nation's socioeconomic security. |
| | B) | encourages economic dependency on foreign countries. |
| | C) | encourages the development of domestic industries. |
| | D) | takes jobs out of the domestic economy. |
| | E) | does all of the above. |
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4 | |
Tariffs serve primarily to: |
| | A) | encourage foreign trade. |
| | B) | equalize production capacity. |
| | C) | raise prices on imports. |
| | D) | limit the quantity of goods leaving the domestic market. |
| | E) | provide consumers with the most competitively priced goods. |
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5 | |
The world's largest manufacturer of peppermint candy canes was in Albany, Georgia, until it could no longer afford to buy the sugar needed for its operation. It moved its manufacturing business to Mexico where there are no restrictions (as existed in the U.S.) on the amount of sugar that can be brought into the nation. The movement of this U.S. business to Mexico was caused by a(n) __________ established by the U.S. government.: |
| | A) | tariff. |
| | B) | blocked currency. |
| | C) | quota. |
| | D) | excise tax |
| | E) | exchange subsidy. |
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6 | |
In January 2002, the U.S. Department of Agriculture extended the ban on importation of Spanish clementines to the U.S. This is an example of: |
| | A) | protectionism. |
| | B) | regiocentrism. |
| | C) | polycentrism. |
| | D) | semiotics. |
| | E) | gray marketing. |
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7 | |
Purafil Inc., an Atlanta company that makes air-purification systems, exported just 15 percent of its $22 million in sales last year to customers in South America. The government taxes, or __________ simply added too much to the final bill. Purafil thinks duty-free trade would allow its exports to jump to 25 percent of sales. |
| | A) | quotas. |
| | B) | countertrade fees |
| | C) | ethnocentric restrictions |
| | D) | trade binding agreements |
| | E) | tariffs |
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8 | |
The World Trade Organization: |
| | A) | is composed few of the major industrialized nations of the world. |
| | B) | addresses a specific narrow set of world trade issues. |
| | C) | has 145 member countries, including the United States. |
| | D) | governs transportation treaties between its members through panels of trade experts who decide on trade disputes between members and issues binding decisions. |
| | E) | The World Trade Organization is (does) all of the above. |
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9 | |
The North American Free Trade Agreement was designed to encourage free trade between: |
| | A) | North America, Central America, and South America. |
| | B) | the United States, Canada, and Mexico. |
| | C) | the United States and the European Union. |
| | D) | member countries originally from NATO (North Atlantic Treaty Organization). |
| | E) | North America and The Commonwealth of Independent States. |
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10 | |
The process that involves the study of similarities and differences among consumers in two or more nations or societies is called: |
| | A) | international attitude evaluation. |
| | B) | multigraphic societal scanning. |
| | C) | polyphasic anthropology. |
| | D) | cross-cultural analysis. |
| | E) | transnational attitudinalization. |
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11 | |
A U.S. salesperson doing business in Japan might interpret silence following an offer as rejection, while to Japanese negotiators silence means the offer is being considered. This difference in interpretations represents a difference in: |
| | A) | codes of ethics. |
| | B) | moral persuasion. |
| | C) | semiotics. |
| | D) | customs. |
| | E) | market perspective. |
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12 | |
In the United States, people with golden tans are generally seen as attractive and possibly even well-to-do. Thus, in the United States a suntan is sought by some. However, in other countries, such as the Philippines, suntans are indicative of laborers and even underprivileged people. Thus, suntans are avoided if at all possible. Accordingly, U.S. businesses seeking to market their products in the Philippines should be attentive to Philippine ___________. |
| | A) | cultural interpretive reasoning |
| | B) | listening |
| | C) | customs |
| | D) | ethics |
| | E) | cultural linguistic differences |
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13 | |
The American company wanted its Spanish ad to read, "The business-to-consumer model is dead." When it had the Spanish ad translated back into English, it discovered the ad read, "The business-to-I drift of the consumer it is dead." This example shows why __________ is so important to global marketers. |
| | A) | counter-language |
| | B) | enthnocentric calibration |
| | C) | language mirroring |
| | D) | semiotic culture |
| | E) | back translation |
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14 | |
A country's communication, transportation, financial, and distribution systems are considered its: |
| | A) | capital infrastructure. |
| | B) | political infrastructure. |
| | C) | economic infrastructure. |
| | D) | geopolitical network. |
| | E) | ecosystem. |
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15 | |
Carlos Andrade is a Mexican entrepreneur that manufactures horchata, a rice-based drink, tamarind juice, and agua de jamaica, an infusion of hibiscus. He uses distributors to get his beverages into stores in the U.S. Carlos Andrade uses: |
| | A) | direct exporting. |
| | B) | indirect exporting. |
| | C) | licensing. |
| | D) | contract manufacturing. |
| | E) | franchising. |
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16 | |
Much of the water in India contains arsenic, a naturally occurring carcinogen. Apyron Technology has developed an innovative device for removing this contaiminant. Apyron executives went to India to sell the water purification device. They personally installed three of them to show the government how effortless installation was. To get its product to India, Apyron Technology used: |
| | A) | direct exporting. |
| | B) | indirect exporting. |
| | C) | licensing. |
| | D) | contract manufacturing. |
| | E) | franchising. |
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17 | |
Indirect exporting is: |
| | A) | offering the right to a trademark, patent, trade secret, or similarly valued item of intellectual property in return for a royalty or fee. |
| | B) | contracting with a foreign firm to manufacture products according to stated specifications. |
| | C) | when a foreign country and a local firm invest together to create a local business. |
| | D) | when a firm sells its domestically-produced goods in a foreign country through an intermediary. |
| | E) | when a firm sells its domestically-produced goods in a foreign country without intermediaries. |
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18 | |
Capital Radio PLC, the United Kingdom's biggest commercial radio firm announced in 2002 that it would cooperate with Walt Disney Co. to create a radio network for children under the age of 16. The company will broadcast to a potential audience of 25 million under the name Capital Disney. This new radio network will be created as the result of: |
| | A) | unfair trade practices. |
| | B) | expropriation. |
| | C) | indirect exporting. |
| | D) | a dumping operation. |
| | E) | a joint venture. |
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19 | |
Paris-based Vivendi Universal SA purchased USA Networks, Inc. and ten percent of EchoStar Communications Corp., to give it a distribution system for its movies. In terms of market-entry strategy, this is an example of: |
| | A) | direct investment. |
| | B) | joint venture. |
| | C) | licensing. |
| | D) | contract manufacturing. |
| | E) | contract assembly. |
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20 | |
Dumping is most closely associated with which marketing mix element? |
| | A) | production |
| | B) | product |
| | C) | price |
| | D) | promotion |
| | E) | distribution |
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