TOP: AACSB Reflective Thinking | TB&E Model International Perspective | TB&E Model Strategy
61. The United States is selling more domestically produced products in other countries than any other
country in the world. This means the United States is the world leader in:
a.
quota making
b.
exporting
c.
tariff trading
d.
dumping
e.
licensing
62. Which list correctly ranks the methods of entering the global marketplace in increasing order of risk?
a.
exporting, licensing and franchising, contract manufacturing, joint venture, and direct
investment
b.
importing, contract manufacturing, licensing and franchising, joint venture, and direct
investment
c.
licensing, franchising, contract manufacturing, joint venture, direct investment, and
exporting
d.
franchising, contract manufacturing, joint venture, direct investment, importing, and
licensing
e.
importing, contract manufacturing, joint venture, direct investment, and exporting
63. The role of a domestic company that sells to an export merchant (also called a buyer for export) is to:
a.
guide the marketing actions of the merchant as the goods are sold in foreign countries
b.
pay all transportation, warehousing, and marketing expenses
c.
sell the product to that merchant who resells the product in the foreign country without the
aid or input of the original manufacturer
d.
broker a partnership agreement such as a joint venture
e.
dictate conditions of sale in foreign countries
64. The _____ is an intermediary in the global market who assumes all risks and sells globally for its own
account. The domestic manufacturer usually treats it like a domestic customer.
a.
buyer for export
b.
export agent
c.
joint venturer
d.
contract manufacturer
e.
market group
65. Carlos Hernandez owns a company in Miami that purchases products from U.S. manufacturers for
export to several countries in Central and South America. Carlos is a(n):
a.
licensing agent
b.
buyer for export
c.
export broker
d.
export agent
e.
export importer
66. A(n) _____ is a global intermediary that brings the buyer and seller together.
a.
buyer for export
b.
export agent
c.
license agent
d.
import agent
e.
export broker
67. DeLouis owns an agency that specializes in bringing international buyers in contact with U.S.
companies to facilitate global trade. What type of intermediary is DeLouis?
a.
buyer for export
b.
export broker
c.
license agent
d.
import agent
e.
export agent
68. _____ are foreign sales agents-distributors who live in a foreign country and represent a domestic
company in sales situations. They perform the same functions as domestic manufacturers’ agents who
help with financing and shipping.
a.
Export agents
b.
Export brokers
c.
Import broker
d.
Buyers for export
e.
Licensing agents
69. International Marketing, Inc. is a company located in Brazil and assists businesses that export products
to Brazil. This company helps with financing, shipping, and any aspect of marketing a product from
another country in Brazil. This company is an example of a(n):
a.
agent broker
b.
export agent
c.
export broker
d.
buyer for export
e.
import broker
70. _____ is a legal process whereby a firm agrees to let another firm use its manufacturing process,
trademarks, patents, trade secrets, or other proprietary knowledge in return for a fee or royalty.
a.
A joint venture
b.
Divestment
c.
Licensing
d.
A principal-agent agreement
e.
A contract manufacturing arrangement
71. Franchising is a form of:
a.
contract marketing
b.
international exporting
c.
licensing
d.
direct exporting
e.
countertrading
72. When Krispy Kreme decided to expand its operation internationally, it chose to first make its
doughnuts available in Canada to minimize its risk. In accordance with the policy of risk minimization,
the company sold the right to manufacture and sell its doughnuts to Canadians. In other words, Krispy
Kreme used:
a.
contract manufacturing
b.
direct investment
c.
importing
d.
a strategic alliance
e.
licensing
73. A U.S. licensor can try to prevent a licensee from voiding its contract and using what it has learned to
create a competitor by:
a.
using lawyers from both countries to write the licensing agreement.
b.
insisting that all licensees have a published code of ethics.
c.
having the licensee pay a fee for the use of the manufacturing process, trademark, patent,
or other proprietary knowledge.
d.
locally registering patents and trademarks to the U.S. firm — not the licensee.
e.
avoiding the use of any patents and trademarks.
74. Disney sells the rights for an investment company to run a Disneyland theme park in Tokyo. The
investment company gains most of the profits from the enterprise while paying Disney a percentage in
royalties. This is an example of:
a.
a joint venture
b.
exporting
c.
direct investment
d.
licensing
e.
capital-intensive manufacturing
75. Patch Products is an Australian company that has given permission to several Latin American
companies to manufacture and market its patented Spanish/English children’s frame tray puzzles.
Because Patch uses licensing as its global marketing strategy, it:
a.
must only pay a minimal royalty to the licensed companies
b.
cannot control how the puzzles are manufactured
c.
has involved itself in the global marketing strategy that gives it the greatest amount of
control
d.
cannot have any control over how the puzzles are promoted or distributed
e.
chose a method of global marketing that created minimal risk
76. Mitsubishi Heavy Industries and Kawasaki Heavy Industries produce McDonnell Douglas’s F-15
fighter planes in Japan. The two Japanese companies pay McDonnell Douglas royalties for use of its
manufacturing processes and patents. This is an example of:
a.
contract manufacturing
b.
exporting
c.
joint venture
d.
licensing
e.
strategic investment
77. Sony, Panasonic, and other Japanese manufacturers that build products to customer order instead of
churning out products in anticipation of demand have decided to hire U.S. companies to produce
electronics for them. The Japanese companies will handle the marketing of the products. Japanese
electronics companies are using:
a.
contract manufacturing
b.
direct investment
c.
franchising
d.
direct exporting
e.
countertrading
78. eBay has been fined $63.2 million in damages for allowing fake and unauthorized goods to be sold
through the online retailer. A Paris commercial judge ruled that eBay had not done enough to ensure
goods sold on its web site around the world were not _____.
a.
counterfeit
b.
knockoffs
c.
third shift
d.
laundered
e.
stolen
79. In Brooklyn, police seized a 40-foot tractor-trailer full of Sony DVD players, Gillette razors, Gucci
sunglasses and a whole array of Yankees gear. All the items had company trademarks that its makers
had no authority to use. The items seized were _____.
a.
counterfeit
b.
parallel imports
c.
third shift
d.
laundered
e.
stolen
80. _____ takes place when a foreign company produces goods to specification set by a domestic
company, with the domestic firm’s brand name affixed to the goods.
a.
Importing
b.
Joint venturing
c.
Exporting
d.
Contract manufacturing
e.
Direct investing
81. With _____, a domestic firm assumes an equity position (partial ownership) in a foreign firm to
manufacture and/or market the domestic company’s goods.
a.
direct investment
b.
a joint venture
c.
a buying-for-export agreement
d.
a contractual agreement
e.
a franchise relationship
82. Caterpillar, Inc. is the world’s largest manufacturer of earth-moving and construction equipment.
Kirovsky is a large Russian manufacturer of the same type of products. The two companies entered
into a(n) _____ and created NEVAMASH, a new company.
a.
import/export partnership
b.
countertrade
c.
disintermediation agreement
d.
joint venture
e.
franchise
83. Belgian Beer brewer InBev bought Anheuser-Bush for $52 billion. This is an example of a _____.
a.
export
b.
joint venture
c.
franchise
d.
licensed agreement
e.
direct foreign investment
84. _____ is a global marketing strategy that requires active ownership (either a controlling interest or
large minority interest) of a foreign company or overseas manufacturing or marketing facilities.
a.
Market grouping
b.
Import brokering
c.
Export subsidizing
d.
Licensing
e.
Direct foreign investment
85. To enter the German market, BDO, an international accounting company, purchased an existing
accounting firm. BDO entered the German market through the use of:
a.
contract marketing
b.
direct investment
c.
franchising
d.
direct exporting
e.
countertrading
86. The first step in creating the global marketing mix is to:
a.
create a new product
b.
select the method of promotion
c.
develop a thorough understanding of the global target market
d.
set pricing policies
e.
decide whether product modification is necessary
87. Apple Inc. used its Mac and PC guy ad in countries around the world. They simply modified the
characters a bit to fit the culture. Apple is attempting to market the Mac using _____.
a.
standardized marketing practices
b.
mixed marketing
c.
character standardization
d.
global marketing standardization
e.
product invention
88. In the context of global marketing, when a company either creates a new product for a market or
dramatically changes an existing product, the company is using a _____ strategy
a.
product invention
b.
product extension
c.
market substitution
d.
product licensing
e.
market adaptation
89. According to the text, which of the following is an example of a product strategy that would be
appropriate for a global marketing company to implement?
a.
product adaptation
b.
product divestment
c.
product penetration
d.
market substitution
e.
product licensing
90. When IKEA, the Swedish home furnishings retailer, first entered the Japanese market, it failed. It was
more successful in its second try because it was aware of the need to adapt its furnishings to fit the
smaller Japanese homes. It success on its second foray into Japan was based on its ability to give the
Japanese consumer what he or she needed without abandoning its product strategy. IKEA had to adopt
a _____ strategy.
a.
product substitution
b.
market differentiation
c.
message adaptation
d.
product invention
e.
product adaptation
91. Maybelline formulated cosmetics that were designed to complement the complexions of women with
various skin types around the world. Which of the marketing mix strategies did Maybelline use?
a.
countertrading
b.
product invention
c.
global market standardization
d.
product licensing
e.
product adaptation
92. Procter & Gamble’s Vidal Sassoon shampoo smells the same worldwide, but the amount of scent used
varies from country to country. This is an example of which type of marketing mix strategy?
a.
countertrading
b.
product invention
c.
global market standardization
d.
product licensing
e.
product adaptation
93. AFLAC has had to ditch the AFLAC duck in its Japanese commercials because the Japanese consumer
does not like to be yelled at. Since Japan is the source of about 70 percent of the insurance company’s
business, it had no trouble adopting a _____ strategy.
a.
product substitution
b.
market differentiation
c.
promotion adaptation
d.
product invention
e.
market diversification
94. Which country is considered to have the most complicated distribution system?
a.
India
b.
Germany
c.
Canada
d.
United States
e.
Japan
95. The pricing component of the global marketing mix is:
a.
the same in domestic and foreign markets
b.
fairly simplistic due to the strength of the U.S. dollar abroad
c.
the easiest element to implement successfully
d.
complicated by product penetration strategies
e.
a complex matter due to tariffs, exchange rates, and government regulations
96. Once marketing managers have determined a global product and promotion strategy, they can select
the remainder of the marketing mix. However, entry into many developing nations presents special
pricing problems because:
a.
the rate of capital accumulation exceeds the rate of population growth
b.
exchange rates caps
c.
of price discrimination
d.
there is a lack of mass purchasing power
e.
advertising time on television is available for sale in all developed countries
97. Currency markets operate under a system in which the prices of different currencies move up or down
based on the demand for and supply of each currency. This practice is called:
a.
countertrading
b.
floating exchange rates
c.
variable purchasing power
d.
flexible monetary policies
e.
purchasing power elasticity
98. _____ is generally defined as the sale of an exported product at a price lower than that charged for the
same or a similar product in the home market of the exporter.
a.
Export reengineering
b.
Crossdocking
c.
Boycotting
d.
Dumping
e.
Countertrading
99. All of the following are reasons for dumping EXCEPT:
a.
lowering unit costs by exploiting large-scale productions
b.
attempting to avoid costly tariffs in the country to which the product is exported
c.
attempting to maintain stable prices during periods of exchange rate fluctuations
d.
temporarily distributing products in overseas markets to offset slack demand in the home
market
e.
trying to increase an overseas market share
100. The European Union accused South Korea of selling ships at a loss in an attempt to push its European
rivals out of the market. In other words, South Korea was accused of:
a.
dumping
b.
illegal importing
c.
countertrading
d.
fiscal impropriety
e.
using an illegal cartel
101. The Canadian magazine industry accused U.S. magazine publishers of _____, selling the magazines in
Canada at a lower price than in the United States.
a.
dumping
b.
offloading
c.
boycotting
d.
repatriating
e.
crossdocking
102. In a newspaper release, Corning, Inc. announced it had received a favorable ruling from China’s
Ministry of Commerce on allegations that it was selling its fiber more cheaply in China than in other
countries. Corning was falsely accused of:
a.
dumping
b.
offloading
c.
boycotting
d.
repatriating
e.
crossdocking
103. International trade does not always involve cash. Sometimes companies accept all or part of the
payment for goods or services in the form of other goods or services. This is known as:
a.
export trading
b.
crossdocking
c.
exchange modification
d.
domestic barter
e.
countertrade
104. All of the following statements about the use of the Internet in global marketing are true EXCEPT:
a.
Opening an e-commerce site on the Internet immediately puts a company in the
international marketplace.
b.
The new Internet economy is being restrained by the old bricks-and-mortar rules,
regulations, and habits.
c.
Consumers in some countries are reluctant to use credit cards to make purchases over the
Internet.