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1 | |
The use of barter rather than money in making international sales is called: |
| | A) | predatory pricing. |
| | B) | a countertrade. |
| | C) | cross-cultural exchange. |
| | D) | economic adaptation. |
| | E) | trade feedback. |
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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 | |
A graphical representation of Michael Porter's elements which create a nation's competitive advantage looks like a: |
| | A) | diamond. |
| | B) | pyramid. |
| | C) | continuum. |
| | D) | circle or loop. |
| | E) | three-dimensional cube. |
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4 | |
Consumers in Japan have access to cell phones with digital cameras to send snapshots by e-mail, built-in players for music downloads, global satellite positioning technology to tell them exactly where they are, and the ability to stream pictures of the caller. This high level of sophistication has led to the creation of a cutting-edge industry that develops increasingly more advanced handheld gadgetry. According to Michael Porter, conditions in Japan are examples of: |
| | A) | demand conditions. |
| | B) | country structure and strategy. |
| | C) | factor conditions. |
| | D) | synergy. |
| | E) | entropy. |
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5 | |
The Economic Espionage Act: |
| | A) | does not prescribe punishments for anyone caught engaged in economic espionage. |
| | B) | is routinely enforced by United Nations militia. |
| | C) | targets espionage activities that are commonplace in the agricultural industry. |
| | D) | makes the theft of trade secrets by foreign entities a federal crime in the U.S. |
| | E) | is accurately described by all of the above. |
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6 | |
Which of the following issues raises a question about the ethics of protectionism? |
| | A) | Competitive advantage grows out of continuous improvement. |
| | B) | Small firms succeed in foreign niche markets. |
| | C) | Tariffs have declined from an average of 40 percent to less than 5 percent. |
| | D) | Regional trade agreements provide preferential treatment for member nations. |
| | E) | Pan-European marketing strategies are possible due to greater uniformity in packaging standards. |
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7 | |
To enter the European market, Starbucks joined in a cooperative venture with Bon Appetit Group A.G. in Switzerland. Bon Appetit has the recognized brand name and Starbucks has the product and the expertise to run coffeehouses. Bon Appetit and Starbucks benefited from their: |
| | A) | international competition. |
| | B) | tactical relationship. |
| | C) | functional co-design. |
| | D) | co-branding strategy. |
| | E) | strategic alliance. |
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8 | |
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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9 | |
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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10 | |
Carlos Andrade is a Mexican entrepreneur that manufactures horchata, a rice-based drink, tamarind juice, and agua de jamaica, an infusion of hibiscus flowers. 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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11 | |
Much of the water in India contains arsenic, a naturally occurring carcinogen. Apyron Technology has developed an innovative device for removing this contaminant. 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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12 | |
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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13 | |
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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14 | |
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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15 | |
Dumping is most closely associated with which marketing mix element? |
| | A) | production |
| | B) | product |
| | C) | price |
| | D) | promotion |
| | E) | distribution |
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