Question 1

Zenith,a popular restaurant chain,has many branches all over the world.The taste and quality of its food is the same across all these branch restaurants.Based on this information,which of the following strategies does Zenith embrace?

Accepted Answer

A)   Global marketing localization
B)   Product adaptation
C)   Mass customization
D)   Global marketing standardizationE) A) and B)
F) A) and C)

Question 2

Global marketing is a one-way street whereby only U.S.companies sell their wares and services throughout the world.

Accepted Answer

A) True 
 B)False

Question 3

Globalization expands economic freedom,spurs competition,and lowers the productivity and living standards of people in countries that open themselves to the global marketplace.

Accepted Answer

A) True 
 B)False

Question 4

A law compelling a company earning from the markets overseas to sell it to a control agency,usually a central bank,is called ___________.

Accepted Answer

A)   exchange control
B)   market grouping
C)   quota
D)   tariffE) B) and C)
F) A) and C)

Question 5

In a direct foreign investment arrangement,which statement is true of the direct investors?

Accepted Answer

A)   They do not have a controlling interest in the firm.
B)   They possess the lowest potential risk.
C)   They have the highest potential reward.
D)   They have a small minority interest in the foreign firm.E) B) and D)
F) B) and C)

Question 6

Which of the following statements is true of the term boycott?

Accepted Answer

A)   It refers to a limit on the amount of a specific product that can enter a country.
B)   It refers to a tax levied on the goods entering a country.
C)   It refers to the exclusion of all products from certain countries or companies.
D)   It refers to an agreement to stimulate international trade.E) B) and C)
F) All of the above

Question 7

Which of the following is true about the European Union (EU) ?

Accepted Answer

A)   All consumer and industrial goods exported to EU countries are no longer subject to tariffs.
B)   European Union (EU) is a trade agreement instituted in 2005 that includes Costa Rica,the Dominican Republic,El Salvador,Guatemala,Honduras,Nicaragua,and the United States.
C)   European Union (EU) does not maintain a common trade policy with outside nations and a regional development policy.
D)   European Union (EU) is one of the world's most important free trade zones.It has member countries such as Austria,Belgium,Bulgaria,the Czech Republic,Denmark,France,and so on,and it guarantees the freedom of movement of people,goods,services,and capital between member states.E) B) and C)
F) A) and D)

Question 8

Which of the following is true about joint ventures?

Accepted Answer

A)   A joint venture is a risky way of entering a global market.
B)   Joint ventures are usually the only way a government will allow a foreign company to enter its country.
C)   Joint ventures enable the local firm or government to acquire managerial skills and new technology.
D)   All of these are correctE) A) and D)
F) C) and D)

Question 9

All countries follow a similar set of customs and traditions that determine business practices and influence negotiations with foreign customers.

Accepted Answer

A) True 
 B)False

Question 10

Dumping may result from all of the following exporter business strategies EXCEPT:

Accepted Answer

A)   trying to increase an overseas market share.
B)   temporarily distributing products in overseas markets to offset slack demand in the home market.
C)   increasing unit costs by exploiting large-scale production.
D)   attempting to maintain stable prices during periods of exchange rate fluctuations.E) A) and B)
F) None of the above

Question 11

Which of the following refers to altering a basic product to meet local conditions?

Accepted Answer

A)   Product invention
B)   Promotion adaptation
C)   Product adaptation
D)   Global marketing standardizationE) None of the above
F) B) and C)

Question 12

The legal process whereby a company allows another firm to use its manufacturing process,trademarks,patents,trade secrets,or other proprietary knowledge is ______________.

Accepted Answer

A)   licensing
B)   contract manufacturing
C)   joint venture
D)   direct foreign investmentE) A) and C)
F) A) and B)

Question 13

Fresnas Corp.,a company that designs in its New York headquarters and had manufactured apparel in Malaysia,now practices inshoring.Given this information,which of the following is most likely to be true of Fresnas Corp.?

Accepted Answer

A)   It keeps its research team in close proximity to its domestic manufacturers.
B)   It faces increased shipping and transportation costs.
C)   It outsources its manufacturing jobs to other countries.
D)   It outputs a lot of production.E) A) and D)
F) A) and C)

Question 14

Which of the following statements is true of a company that is in the second stage of developing a global business?

Accepted Answer

A)   It maintains a virtual executive suite.
B)   It sets up foreign subsidiaries to handle sales in one country.
C)   It runs its business entirely through the Internet.
D)   It bases its entire operations in its home country.E) None of the above
F) C) and D)

Question 15

Which of the following statements is true of globalization?

Accepted Answer

A)   It expands economic freedom and increases the living standards of people.
B)   It increases prices and decreases product and service quality.
C)   It has curbed the growth of the middle class in developing countries.
D)   It leads to a monopoly of domestic producers.E) B) and C)
F) A) and D)

Question 16

Which way of entering the global marketplace subjects a company to the highest risk,but offers the highest return?

Accepted Answer

A)   Exporting
B)   Contract manufacturing
C)   Joint venture
D)   Direct investmentE) None of the above
F) A) and B)

Question 17

Which of the following identifies a difference between a boycott and a quota?

Accepted Answer

A)   A boycott sets a limit on the amount of goods entering a country,whereas a quota is a tax levied on goods entering a country.
B)   A boycott is the revenue received from international trade,whereas a quota is the revenue received from domestic trade.
C)   A boycott is used to include all foreign competition,whereas a quota is used by governments to exclude companies from countries with which they have a political dispute.
D)   A boycott is the exclusion of all products from certain countries or companies,whereas a quota is a means of protection from foreign competition.E) A) and B)
F) None of the above

Question 18

Active ownership of a foreign company or of overseas manufacturing or marketing facilities is called ____________.

Accepted Answer

A)   direct foreign investment
B)   foreign institutional investment
C)   contract manufacturing
D)   licensingE) C) and D)
F) A) and C)

Question 19

Which of the following statements is correct about BRICS?

Accepted Answer

A)   Outside of China,the brightest light among the BRICS is India.
B)   India is more dependent on exports than other BRICS country.
C)   Politics do not play a role in the development of BRICS.
D)   China is not one of the BRICS countries.E) A) and B)
F) A) and C)

Question 20

The Uruguay Round replaced the General Agreement on Tariffs and Trade (GATT) with _____.

Accepted Answer

A)   the European Union (EU) 
B)   the World Trade Organization (WTO) 
C)   the North American Free Trade Agreement (NAFT
A)  
D)   the International Monetary Fund (IMF) E) C) and D)
F) All of the above

Exam 5: Developing a Global Vision

Which of the following identifies a difference between a boycott and a quota?

Correct AnswerverifiedShow Answer

The legal process whereby a company allows another firm to use its manufacturing process,trademarks,patents,trade secrets,or other proprietary knowledge is ______________.

Correct AnswerverifiedShow Answer

Which of the following statements is true of a company that is in the second stage of developing a global business?

Correct AnswerverifiedShow Answer

The Uruguay Round replaced the General Agreement on Tariffs and Trade (GATT) with _____.

Correct AnswerverifiedShow Answer

Which of the following refers to altering a basic product to meet local conditions?

Correct AnswerverifiedShow Answer

Dumping may result from all of the following exporter business strategies EXCEPT:

Correct AnswerverifiedShow Answer

Which of the following statements is true of the term boycott?

Correct AnswerverifiedShow Answer

Active ownership of a foreign company or of overseas manufacturing or marketing facilities is called ____________.

Correct AnswerverifiedShow Answer

Which of the following is true about the European Union (EU) ?

Correct AnswerverifiedShow Answer

Which way of entering the global marketplace subjects a company to the highest risk,but offers the highest return?

Correct AnswerverifiedShow Answer

Fresnas Corp.,a company that designs in its New York headquarters and had manufactured apparel in Malaysia,now practices inshoring.Given this information,which of the following is most likely to be true of Fresnas Corp.?

Correct AnswerverifiedShow Answer

Zenith,a popular restaurant chain,has many branches all over the world.The taste and quality of its food is the same across all these branch restaurants.Based on this information,which of the following strategies does Zenith embrace?

Correct AnswerverifiedShow Answer

Which of the following statements is true of globalization?

Correct AnswerverifiedShow Answer

In a direct foreign investment arrangement,which statement is true of the direct investors?

Correct AnswerverifiedShow Answer

All countries follow a similar set of customs and traditions that determine business practices and influence negotiations with foreign customers.

Correct AnswerverifiedShow Answer

Globalization expands economic freedom,spurs competition,and lowers the productivity and living standards of people in countries that open themselves to the global marketplace.

Correct AnswerverifiedShow Answer

Which of the following statements is correct about BRICS?

Correct AnswerverifiedShow Answer

Which of the following is true about joint ventures?

Correct AnswerverifiedShow Answer

Global marketing is a one-way street whereby only U.S.companies sell their wares and services throughout the world.

Correct AnswerverifiedShow Answer

A law compelling a company earning from the markets overseas to sell it to a control agency,usually a central bank,is called ___________.

Correct AnswerverifiedShow Answer

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