Entrepreneurship and Small Business Management, 2e (Mariotti)
Chapter 10 Marketing Globally
1) For many companies, cost reductions have been attained by all of the following except
________.
A) Locating a facility abroad
B) Securing raw material abroad
C) Manufacturing suppliers in foreign markets
D) Bringing foreign production to domestic locations
E) None of the above
Learning Obj.: LO 1
AACSB: Analytical thinking
2) There are numerous Web sites with valuable information on countries and trading that may
________.
A) Be excellent sources of specific resources
B) Provide opportunities for cost reduction
C) Represent a treasured customer base
D) All of the above
E) None of the above
Learning Obj.: LO 4
AACSB: Application of knowledge
3) In order to take advantage of these location-specific resources, companies must reach across
borders and/or ________.
A) Import products
B) Acquire human capital
C) Create their own locations
D) All of the above
E) None of the above
Learning Obj.: LO 1
AACSB: Analytical thinking
1
4) Which of the following is not a strategy option for global marketing?
A) Importing
B) Exporting
C) Forming strategic alliances
D) Locating abroad
E) Local distribution
Learning Obj.: LO 2
AACSB: Application of knowledge
5) There is ________ in global marketing, the possibility of a country’s political structure and
policies negatively impacting a foreign company transacting business inside its borders.
A) Political risk
B) Radical risk
C) Partisan risk
D) Dogmatic risk
E) Administrative risk
Learning Obj.: LO 3
AACSB: Application of knowledge
6) Marketing approaches that work in the United States may be ________ or ________
elsewhere, so it is important to work with experienced, successful marketers for exports.
A) Ineffective, offensive
B) Effective, offensive
C) Effective, unpleasant
D) Ineffective, acceptable
E) Unsuccessful, acceptable
Learning Obj.: LO 3
AACSB: Analytical thinking
7) Which of the following is not a common export?
A) Lawn service
B) Travel
C) Entertainment
D) Telecommunications
E) Health care
Learning Obj.: LO 2
AACSB: Application of knowledge
2
8) Selected trade intermediaries include all of the following except ________.
A) Confirming house
B) Export agents
C) Export trading company
D) Remarketers
E) Postexport marketers
Learning Obj.: LO 2
AACSB: Application of knowledge
9) Higher ________ rates and lower ________ rates are reported among companies that export
compared to those that do not.
A) Growth, failure
B) Development, failure
C) Growth, disaster
D) Progress, failure
E) Decay, failure
Learning Obj.: LO 2
AACSB: Analytical thinking
10) One reason for setting up international facilities is an established international customer base.
This may warrant a ________ close to the customers.
A) Sales office
B) Distribution center
C) Production facility
D) All of the above
E) None of the above
Learning Obj.: LO 2
AACSB: Application of knowledge
11) Exporting disadvantages may include ________.
A) Sell excess production capacity
B) Gain information about foreign competition
C) Enhance potential for corporate expansion
D) Stabilize seasonal market fluctuations
E) Modify products or packaging
Learning Obj.: LO 2
AACSB: Analytical thinking
3
12) Strategic alliances may be based on ________.
A) Technology
B) Production
C) Distribution
D) All of the above
E) None of the above
Learning Obj.: LO 2
AACSB: Reflective thinking
13) The U.S. market has over 300 million people, while the global market is approximately
________ billion, presenting huge expansion potential for many businesses.
A) 7.1
B) 9
C) 8.2
D) 5.8
E) 6
Learning Obj.: LO 1
AACSB: Application of knowledge
14) ________ is relocating company operations to foreign locations.
A) Offshoring
B) Outsourcing
C) Reallocating
D) Centralizing
E) Formalizing
Learning Obj.: LO 1
AACSB: Application of knowledge
15) Global markets offer expanded access to ________.
A) Raw materials
B) Intellectual property
C) Human capital
D) All of the above
E) None of the above
Learning Obj.: LO 1
AACSB: Application of knowledge
4
16) ________ is the sale of products produced in a foreign country to customers in your home
country.
A) Importing
B) Smuggling
C) Exporting
D) Rummaging
E) Pillaging
Learning Obj.: LO 2
AACSB: Analytical thinking
17) An international trip taken by government officials and businesspeople to promote exports or
to attract investment is known as a ________.
A) Trade mission
B) Trade assignment
C) Trade undertaking
D) Skill mission
E) Trade operation
Learning Obj.: LO 2
AACSB: Application of knowledge
18) Significant challenges and financial costs of exporting include ________.
A) Finding the right trading partners
B) Overcoming information barriers
C) Coping with volatile political conditions
D) Coping with volatile economic conditions
E) All of the above
Learning Obj.: LO 2
AACSB: Application of knowledge
19) Which of the following is not an exporting cost above and beyond labor and materials?
A) Export Packaging
B) Container Loading
C) Inland Freight
D) Tariffs
E) Liability Insurance
Learning Obj.: LO 2
AACSB: Application of knowledge
5
20) How many dollars is €6.25 worth if the exchange rate is $1.00 is worth €1.25?
A) $5.00
B) $5.25
C) $6.00
D) $6.25
E) $8.00
Learning Obj.: LO 3
AACSB: Application of knowledge
21) The world has many interesting locations with unique combinations of resources. Not
included in these resources are ________.
A) Skilled labor
B) Minerals
C) Crops
D) Petroleum
E) Technology
Learning Obj.: LO 1
AACSB: Analytical thinking
22) Exporting can be defined as ________.
A) Selling goods or services produced domestically to foreign customers
B) Selling goods or services produced domestically to local customers
C) Selling goods or services produced oversees to domestic customers
D) Buying goods or services produced domestically
E) Selling goods or services produced by foreign companies
Learning Obj.: LO 3
AACSB: Analytical thinking
23) Taxes or duties on goods and services imported into a country are ________.
A) Tariffs
B) Quotas
C) Embargoes
D) Dumping
E) None of the above
Learning Obj.: LO 3
AACSB: Application of knowledge
6