227) A gray market is
A) the segment of products specifically designed for the need of older buyers.
B) a once active and powerful market that is rapidly becoming the bottom of the barrel.
C) a situation where products are sold through unauthorized channels of distribution.
D) a pricing structure that is based upon haggling that is considered acceptable in some countries
but not others.
E) the willingness of one party to accept gifts in exchange for better prices or price allowances.
228) Another term for a gray market is
A) equivalent exporting.
B) back-channel market.
C) mature marketing.
D) parallel importing.
E) transparent market.
229) The Japanese manufacture tractors for rice paddies. They are smaller than most U.S.
tractors and perfect for a weekend farmer who wants to tend to a small garden. The tractors are
not sold in the United States through any authorized channels, yet they are available in the
United States at prices below the manufacturer’s suggested retail price. These Japanese tractors
are being sold
A) through the gray market.
B) under the table.
C) over the counter.
D) with bypassed global channels.
E) by breaking the distribution monopoly.
230) Before Apple’s iPhone 7 was officially for sale in China, it was being sold there. These
phones were purchased in the United States and Australia and then resold by unauthorized
vendors in China for between $1,700 and $2,500. These products are considered to be part of
A) under-the-counter sales.
B) over-the-counter sales.
C) the gray market.
D) integrated global channels.
E) breaking the distribution monopoly.
231) Mary Kay, Inc., can be classified as which type of company when marketing its products
around the world?
A) multinational firm
B) transnational firm
C) international firm
D) global marketing firm
E) multidomestic firm
232) Since 1963, the guiding principle of Mary Kay, Inc., has been based on
A) the Consumer Bill of Rights.
B) the Golden Rule.
C) caveat emptor.
D) the American Marketing Association Statement of Ethics.
E) maximizing profits so long as the firm stays within the rules.
233) What global market entry strategy did Mary Kay use when it entered India?
A) direct importing
B) licensing
C) indirect exporting
D) joint venture
E) direct exporting
234) One global perspective on world trade views exports and imports as complementary
economic flows. Explain this concept.
235) Explain the trade feedback effect.
236) Explain the concept of countertrade, and discuss its importance.
237) Give at least one argument for and one argument against protectionism.
238) If your primary motive was to raise prices on imports, would you use tariffs or quotas? Why
would you want to do this?
239) Describe the World Trade Organization (WTO) and its purpose.
240) In recent decades, a number of countries with similar economic goals have formed
transnational trade groups or signed trade agreements for the purpose of promoting free trade.
Describe the three discussed in the textbook.
241) Three types of companies populate and compete in the global marketplace. Identify and
describe each type.
242) Identify and describe the factors a company should consider in order to do a thorough cross-
cultural analysis. In your answer, define cross-cultural analysis.
243) Why is it wise for global marketers to use back translation? Provide an example to support
your answer.
244) Global marketing is affected by economic considerations. Identify the three steps that
should be performed when scanning the global marketplace.
245) What is meant by the term economic infrastructure and how can this affect a firm’s plans to
enter a global market?
246) Define a currency exchange rate and discuss its importance to global companies.
247) What are the market-entry strategy options available to a company seeking to enter the
global marketplace? How do they relate to each other in terms of profit potential, risk, financial
commitment required, and marketing control?
248) Explain the difference between indirect exporting and direct exporting. What are the
advantages and disadvantages of each approach?
249) Explain the difference between joint venture and direct investment market entry strategies.
What are the advantages and disadvantages of each approach?
250) Define licensing, cite its advantages and disadvantages, and explain what franchising is.
251) What are the product and promotion strategies available to a company seeking to enter the
global marketplace? How do they relate to each other in terms of the same or adapted product
and promotion?
252) Describe the elements in a global channel of distribution.
253) Explain the difference between dumping and parallel importing.
254) Explain why not all nations and regions of the world participate equally in world trade.