Marketing, 14e (Kerin)
1) Why has Amazon been aggressively pursuing the Indian market since 2013?
A) U.S. sales have begun to decrease.
B) Amazon believed it would be inexpensive to begin operations in India.
C) There was no competition to speak of for Amazon’s e-commerce channel in India.
D) There were fewer restrictions in retailing in India.
E) The India market offered significant growth potential.
2) All of the following are challenges faced by Amazon in its expansion into India except which?
A) Low rates of credit and debit card usage among Indian consumers, and many without bank
accounts
B) Well-financed and capable domestic competitors in India
C) Political instability and social unrest in India
D) Underdeveloped technology requiring financial and technological investment in a localized
cloud computing platform for India
E) Strict trade regulations that prevent direct sales to Indian consumers
3) Which of the following statements about the dynamics of world trade is most accurate?
A) Manufactured products and commodities account for only 25 percent of world trade.
B) Services such as telecommunications, transportation, and banking are not included in
calculations of world trade.
C) The United States has replaced China as the biggest country in terms of world trade.
D) All nations participate equally in world trade.
E) Dollar value of world trade has roughly doubled in the past decade.
4) Which of the following statements about the dynamics of world trade is most accurate?
A) As the largest international importer and exporter, the U.S. accounts for 65 percent of world
trade.
B) World trade is calculated to include only the exchange of money for products or services.
C) An estimated 35 percent of world trade involves countertrade.
D) China, the United States, and Germany far outpace other countries in terms of imports and
exports.
E) Because of NAFTA, North American intratrade is no longer counted in calculations of world
trade.
5) Which of the following countries is the world’s leading exporter?
A) the United States
B) China
C) India
D) Germany
E) Japan
6) Which of the following countries is the world’s leading importer?
A) the United States
B) China
C) India
D) Germany
E) Japan
7) All nations and regions of the world do not participate equally in world trade. World trade
flows reflect
A) the influences of culture and language.
B) the differences among industries, countries, and regions.
C) interdependencies among industries, countries, and regions.
D) the challenges of currency and exchange imbalances.
E) the increasing importance of services verses products.
8) A country’s imports
A) stimulate the imports of other countries.
B) have no effect on its exports.
C) have no relationship with its balance of payments.
D) affect its exports and exports affect its imports.
E) over time will decrease its overall economic activity.
9) The complementary nature of economic flows internationally, whereby imports stimulate
exports and vice versa, is called ________ and is one argument for free trade among nations.
A) the balance of trade
B) countertrade
C) exchange trade
D) the trade feedback effect
E) global market trading
10) The trade feedback effect is one argument for
A) decreasing a nation’s exports.
B) free trade agreements.
C) increased tariffs and quotas.
D) international trade associations.
E) decreasing a nation’s imports.
11) Countertrade refers to
A) the illegal agreement of one country to buy products exclusively from another.
B) the legal agreement of one country to buy and sell certain products exclusively from one
another.
C) the practice of using barter rather than money for making global sales.
D) the sale of industrial goods from a brick and mortar outlet rather than directly from the
manufacturer.
E) the use of foreign currency in making global purchases to minimize risk from currency
fluctuation.
12) An estimated 10 to 15 percent of world trade involves ________, the practice of using barter
rather than money for making global sales.
A) cross trade
B) countertrade
C) exchange trade
D) trade feedback
E) market trading
13) Volvo of North America delivered automobiles to the Siberian police force when Siberia had
no cash to pay for them. It accepted payment in oil, which it then sold for cash to pay for media
advertising in the United States. This transaction is an example of
A) a quota.
B) countertrade.
C) balance of trade.
D) competitive advantage.
E) a trade feedback effect.
14) The Malaysian government exchanged 20,000 tons of rice for an equivalent amount of
Philippine corn. This transaction is an example of a(n)
A) countertrade.
B) competitive advantage.
C) balance of trade.
D) quota.
E) trade feedback.
15) Recipco and Tradaq are both companies that connect international companies who want to
barter the products they make for the products they need without using cash or credit. Recipco
and Tradaq assist international companies in making
A) countertrades.
B) quota exchanges.
C) trading exchanges.
D) balances of trade.
E) WTO trade arrangements.
16) The monetary value of all products and services produced in a country during one year is
referred to as the
A) balance of trade.
B) gross domestic product.
C) national monetary reserve.
D) monetary national balance.
E) annual national product.
17) Gross domestic product refers to the
A) monetary value of all products and services produced by a single manufacturer during one
year.
B) monetary value of all domestic exports of a nation during one year.
C) monetary value of all products and services produced in a country during one year.
D) monetary value of all domestic imports of a nation during one year.
E) difference between all domestic exports and imports for any nation during the course of one
fiscal year.
18) The balance of trade is the
A) difference between the monetary value of a nation’s exports and imports.
B) sum of the monetary value of a nation’s exports and imports.
C) monetary value of a nation’s exports divided by its imports.
D) surplus that occurs when nations engage in exporting.
E) state of equilibrium when two neighboring nations participate in countertrade.
19) When a country’s exports exceed its imports,
A) it incurs a deficit in its balance of trade.
B) the result is the trade feedback effect.
C) it will try to rebalance its overall economy.
D) it will attempt to engage in a trade war.
E) it incurs a surplus in its balance of trade.
20) When a nation’s imports exceed its exports, it incurs a ________ in its balance of trade.
A) countertrade
B) trade feedback effect
C) deficit
D) surplus
E) tariff
21) Which of the following statements about the relationship between the imports into the United
States and the exports from the United States during the last 40 years is most accurate?
A) Exports from the United States have declined, while import levels have remained about
constant.
B) The volume of both imports and exports has consistently decreased.
C) Imports into the United States and exports have been about equal, indicating balanced trade.
D) Exports have exceeded imports, indicating a continuing balance of trade surplus.
E) Imports have exceeded exports, indicating a continuing balance of trade deficit.
22) The four largest importers of U.S. products and services are
A) Japan, Germany, China, and Canada.
B) Canada, Mexico, China, and Japan.
C) China, Brazil, Japan, and Germany.
D) Mexico, Canada, Brazil, and China.
E) England, Canada, Australia, and New Zealand.
23) Five developments in the past decade have significantly influenced the landscape of global
marketing. One of them is
A) an increase in most countries’ GDP coupled with an increased degree of consumer
ethnocentrism.
B) a significant increase in economic protectionism and a decline in tariffs and quotas.
C) a more aggressive attitude toward regulating international banking.
D) a decrease in most countries’ GDP and a renewal of nationalism.
E) a growth in economic integration among countries.
24) Five developments in the past decade have significantly influenced the landscape of global
marketing. One of them is
A) the presence of a networked global marketspace.
B) an elimination worldwide of tariff and quotas.
C) a more aggressive attitude toward regulating international banking.
D) a sharp decline in economic espionage.
E) a gradual dissolution of unpopular trade agreements.
25) The practice of shielding one or more sectors of a country’s economy from foreign
competition through the use of tariffs or quotas is referred to as
A) domestic imperialism.
B) protectionism.
C) blocked competition.
D) import taxation.
E) trade restriction.
26) Arguments in favor of protectionism include that it
A) helps reduce tariffs and quotas.
B) promotes development of domestic industries.
C) encourages economic reliance on foreign countries.
D) creates opportunities for the outsourcing of domestic jobs.
E) creates a more favorable environment for a global economy.
27) Recently, the United States imposed a 35 percent tariff on Chinese tire imports in the hopes
of sustaining U.S. jobs in tire manufacturing. This addition of tariffs is an example of
A) imposing the rule of eminent domain.
B) increasing ethnocentrism.
C) enhancing domestic imperialism.
D) increasing protectionism.
E) slowing countertrade.
28) Which of the following issues raises concerns 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 may provide preferential treatment for member nations.
E) Pan-European marketing strategies are possible due to greater uniformity in packaging
standards.
29) The question mark in Figure 7-2 above leads to which of the following as a result of the
imposition of tariffs and quotas?
A) an increase in world trade
B) a decrease in world trade
C) a limit on exports
D) an increase in exports
E) countertrade
30) Government taxes on products or services entering a country that primarily serve to raise
prices on imports are referred to as
A) tariffs.
B) quotas.
C) WTO taxes.
D) foreign excise taxes.
E) trade subsidies.
31) Tariffs refer to
A) government payments to companies or industries that primarily serve to create competitive
advantage for domestic products.
B) government taxes on products or services entering a country that primarily serve to raise
prices on imports.
C) a restriction placed on the amount of a product allowed to enter or leave a country.
D) a minimum requirement for the purchase between two or more nations of products or
services.
E) a refusal to purchase or exchange products or services with another nation unless certain
financial or ideological requirements have been satisfied.
32) The U.S. Rice Millers’ Association claims that if the Japanese rice market were opened to
imports by lowering ________, lower prices would save Japanese consumers $6 billion annually
and the United States would gain a large share of the Japanese rice market.
A) boycotts
B) quotas
C) sanctions
D) tariffs
E) subsidies
33) The ________ imposed on imported bananas by European Union countries cost consumers
$2 billion a year in higher prices.
A) boycotts
B) quotas
C) sanctions
D) subsidies
E) tariffs
34) U.S. citizens pay $5 billion more annually for shoes and Japanese citizens pay $6 billion
more for rice than the actual cost of the products because
A) both countries have suffered major financial crises due a severe trade imbalance.
B) both countries have imposed tariffs on imported goods to protect their domestic markets.
C) both countries have imposed limits on the quantity of these goods that can leave their
respective domestic markets.
D) both products are considered essentials and as a result are more heavily taxed.
E) these products were purchased at a lower price from nations that currently are under
governmental sanctions.
35) Recently, the Japanese government, under pressure from its domestic farm lobby, slapped
government taxes on mushrooms, leeks, and the reeds used in tatami mats that were being
imported from China. These taxes Japan levied are referred to as
A) WTO taxes.
B) quotas.
C) tariffs.
D) excise taxes.
E) subsidies.
36) If you wanted to set up a business importing amber jewelry from Latvia to the United States,
you would have to plan on paying the U.S. Customs Service a government tax of roughly 11
percent of the value of the product as a(n)
A) bribe.
B) tariff.
C) subsidy.
D) excise tax.
E) quota.
37) Whirlpool asked the United States to impose ________ on washing machine imports made
by LG Electronics and Samsung Electronics, both South Korean companies, to raise the price of
these products. Whirlpool accused these companies of selling below fair market value and
receiving anticompetitive export subsidies from their governments, both of which could
jeopardize American jobs.
A) boycotts
B) quotas
C) sanctions
D) tariffs
E) embargoes
38) A restriction placed on the amount of a product allowed to enter or leave a country is referred
to as a(n)
A) quota.
B) tariff.
C) WTO tax.
D) subsidy.
E) excise tax.
39) A quota refers to
A) a government tax on products or services entering a country that primarily serves to raise
prices on imports.
B) government payments to companies or industries that serve to lower costs and provide a
competitive advantage to domestic industries.
C) a restriction placed on the amount of a product allowed to enter or leave a country.
D) a minimum requirement for the purchase of specific products or services between two
nations.
E) a refusal to purchase or exchange products or services with another nation unless certain
financial or ideological requirements have been satisfied.