 |
| 1 | |
Which of the following factors would generally have the LEAST impact on a country's balance of trade? |
| | A) | ad standardization |
| | B) | subsidized industries |
| | C) | consumer preferences |
| | D) | trade barriers |
| | E) | tax structures |
|
|
|
| 2 | |
General Motors manufactures its American-bred sports car, the Chevrolet Corvette, shorter and narrower to sell in Europe. Europeans like a car that is more compact on the outside. What strategic plan is General Motors using for international marketing? |
| | A) | mass customization |
| | B) | local strategy |
| | C) | global strategy |
| | D) | regional strategy |
| | E) | ethnocentrism |
|
|
|
| 3 | |
If a U.S. company that specializes in automobile insurance, were to consider expanding its operations to South Africa, it would be important for the company to discover that South Africa has one of the world's worst road safety records. There are 6 million vehicles on the road, and about 10,000 people killed in auto accidents annually-most of them due to alcohol consumption, which is perceived as a natural right and not as a potentially dangerous act. This differing perception of alcohol consumption and driving reflects _____ forces in the international environment. |
| | A) | natural |
| | B) | social and cultural |
| | C) | technology |
| | D) | economic |
| | E) | competition |
|
|
|
| 4 | |
In early 2003 as part of the North America Free Trade Agreement (NAFTA), Mexico removed a tariff on poultry imported into Mexico from the United States. This means: |
| | A) | Mexican grown chickens will legally be priced less than U.S.-grown imported chicken. |
| | B) | U.S. poultry producers will not have a tax placed on chicken they sell in Mexico. |
| | C) | Mexico wants to protect its domestic chicken producers from losing sales to cheaper imports. |
| | D) | U.S. poultry producers will be allowed to export only a predetermined quota to Mexico. |
| | E) | Mexicans will refuse to buy U.S.-grown chickens. |
|
|
|
| 5 | |
The _____ was created as the governing body of global commerce. It provides a forum for airing trade disputes between countries, but it does not guarantee that solutions to disagreements will be found. |
| | A) | European Union (EU) |
| | B) | North American Free Trade Agreement (NAFTA) |
| | C) | Common Market of the South (MERCOSUR) |
| | D) | Association of Southeast Asian Nations (ASEAN) |
| | E) | World Trade Organization (WTO) |
|
|
|
| 6 | |
There are several methods businesses can use to operate in foreign markets. Which of the following methods requires the lowest involvement abroad for a business? |
| | A) | contract manufacturing |
| | B) | an export merchant or agent |
| | C) | a wholly owned subsidiary |
| | D) | a multinational corporation |
| | E) | licensing |
|
|
|
| 7 | |
Most of the sportswear with the Adidas brand name sold in the United States is made in Asian-owned plants. What kind of an organizational structure for international operations is Adidas using? |
| | A) | export agencies |
| | B) | wholly owned subsidiaries |
| | C) | franchising |
| | D) | contract manufacturing |
| | E) | joint ventures |
|
|
|
| 8 | |
Sweden's SKF and Germany's INA entered into a partnership arrangement to create NN Euroball, the world's largest manufacturer of the ball bearings used in everything from electric motors and household appliances to industrial robots and skateboards. Since both companies are owners of the company, this arrangement would be described as a(n): |
| | A) | joint venture. |
| | B) | wholly owned subsidiary. |
| | C) | franchise. |
| | D) | export sales branch. |
| | E) | export agency. |
|
|
|
| 9 | |
Heineken, the Dutch brewer owns and operates Al Abram Beverage Company in Egypt, the country's sole brewery. What method of operating in foreign markets is Heineken using? |
| | A) | joint venture |
| | B) | wholly owned subsidiary |
| | C) | strategic alliance |
| | D) | multinational exporting |
| | E) | local sales agency |
|
|
|
| 10 | |
Product planning strategies used by international marketers include product invention, product adaptation, and: |
| | A) | product diffusion. |
| | B) | product extension. |
| | C) | product commercialization. |
| | D) | product standardization. |
| | E) | product adoption. |
|
|
|
| 11 | |
Which of the following products would be the most difficult to standardize globally and would more than likely require a product invention strategy? |
| | A) | industrial-sized generators |
| | B) | farming equipment |
| | C) | concrete |
| | D) | shampoo |
| | E) | a fast-food franchise like McDonald's |
|
|
|
| 12 | |
When Coko Toy Company, a Chinese manufacturer, began marketing interlocking bricks, Lego, the originator of the bricks and the holder of copyrights on the building toy, accused the Chinese toy manufacturer of _____. Lego had little hope of winning its lawsuit because China's copyright laws are poorly enforced. |
| | A) | creating a differential advantage |
| | B) | promoting differential disadvantages |
| | C) | trademark infringement |
| | D) | having a convoluted value chain |
| | E) | created a strategic alliance |
|
|
|
| 13 | |
The U.S. catfish industry accused Vietnam of flooding the market with Vietnamese catfish at a price below that charged at which a Vietnamese consumer could expect to buy the same fish in his or her home market. In other words, the U.S. catfish producers accused the Vietnamese catfish growers of: |
| | A) | countertrading. |
| | B) | illegal bartering. |
| | C) | creating a gray market. |
| | D) | trademark infringement. |
| | E) | dumping. |
|
|
|
| 14 | |
When determining pricing strategies to use in international markets, organizations sometimes have to consider using countertrades. Another name for countertrades is: |
| | A) | value chains. |
| | B) | barters. |
| | C) | service exchanges. |
| | D) | gray marketing. |
| | E) | in-transit diversion. |
|
|
|
| 15 | |
A(n) _____ is a group of companies that produce similar products and act collectively to restrain competition in manufacturing and marketing. |
| | A) | monopoly |
| | B) | industrial cooperative |
| | C) | cartel |
| | D) | foreign exchange |
| | E) | import diverter |
|
|
|
| 16 | |
Which of the following statements about international advertising is true? |
| | A) | Advertising can never be standardized. |
| | B) | Cost savings should not be a consideration when designing creative advertising to capture consumer attention. |
| | C) | Typically advertising that works in one culture will readily work in others. |
| | D) | The goal of advertising is the same in any country in which it is used. |
| | E) | All of the above statements about international advertising are true. |
|
|
.