Principles of Marketing, 15e (Kotler/Armstrong)
Chapter 19 The Global Marketplace
1) Which of the following characterizes U.S. companies in the past?
A) They paid significant attention to international trade.
B) Their biggest markets were in other countries.
C) The home market was much safer than the foreign market.
D) They disregarded political and legal risks overseas.
E) They adapted products to foreign customer needs.
2) According to the text, what location does Coca-Cola consider a “promising long-term growth
opportunity”?
A) Russia
B) Brazil
C) China
D) Africa
E) India
3) Which of the following is most likely to be the consequence of increase in growth of global
trade?
A) Home markets become richer in opportunities.
B) Foreign firms expand aggressively into new international markets.
C) Global competition is curbed.
D) Industries become safe from foreign competition.
E) Domestic companies increase their chances to dominate their home markets.
4) Firms that stay at home to play it safe ________.
A) protect themselves from competition at home
B) gain a competitive edge against imports in their home markets
C) successfully shield themselves from foreign competition
D) risk losing their home markets
E) increase their chances of entering other markets
5) Which of the following is a risk associated with international trade?
A) technological obsolescence
B) highly unstable governments
C) market monopolization
D) lack of trade barriers
E) currency stagnation
6) A ________ firm is one that, by operating in more than one country, gains marketing,
production, research and development, and financial advantages that are not available to purely
domestic competitors.
A) global
B) domestic
C) federally chartered
D) direct investment
E) free trade zone
7) Which question should most likely be answered by all companies due to the rapid move
toward globalization?
A) How should we eliminate domestic competition?
B) Should we diversify in a new business area in the home country?
C) Where should we produce or source our products?
D) How should we fulfill our environmental obligations?
E) Which medium of advertising should we use in our home country?
8) Which of the following major decisions should be taken by a company immediately after it
decides to operate internationally?
A) deciding which markets to enter
B) deciding how to enter the market
C) deciding on the global marketing organization
D) deciding on the global marketing program
E) deciding on the global communication program
9) Immediately after deciding which markets to enter, the company should determine ________.
A) the most suitable global communication program
B) how to price its products in different markets
C) the global marketing organization
D) the global marketing program
E) how to enter the market
10) Which of the following terms refers to a tax levied by a foreign government against certain
imported products?
A) embargo
B) tariff
C) excise
D) exchange control
E) quota
11) A(n) ________ is a limit on the amount of goods that an importing country will accept in
certain product categories.
A) embargo
B) tariff
C) benchmark
D) quota
E) exchange control
12) A(n) ________ serves to limit the amount of foreign exchange and the exchange rate against
other currencies.
A) exchange premium
B) free trade zone
C) quota
D) exchange control
E) tariff trade barrier
13) Bias against bids made by American companies is an example of a(n) ________.
A) quota
B) tariff
C) boycott
D) nontariff trade barrier
E) exchange control
14) Which of the following is a nontariff trade barrier?
A) strike
B) quota
C) boycott
D) exchange premium
E) restrictive product standards
15) Foreign businesses in China appear to receive unusually close scrutiny and harsh treatment
from Chinese authorities, aimed at boosting the fortunes of local competitors. This is an example
of a(n) ________.
A) nontariff trade barrier
B) tariff
C) boycott
D) exchange control
E) quota
16) Which of the following was designed to help foster trade between nations?
A) tariffs
B) GATT
C) exchange controls
D) quotas
E) nontariff trade barriers
17) The ________, established in 1947 and modified in 1994, was designed to promote world
trade by reducing tariffs and other international trade barriers.
A) OPEC
B) GATT
C) EU
D) ASEAN
E) NAFTA
18) The ________ was established to replace GATT in 1995 and now oversees the original
GATT provisions.
A) WTO
B) EU
C) NAFTA
D) CAFTA
E) NATO
19) Which of the following was a result of the Uruguay Round of global WTO trade talks?
A) It increased the world’s remaining merchandise tariffs by 30 percent.
B) It minimized the international protection of copyrights, patents, and trademarks.
C) It extended the WTO to cover trade in agriculture and a wide range of services.
D) It established the NATO for purposes of collective security.
E) It established the EU to reduce trade barriers and increase cooperation among its members.
20) Growing Green, a U.S. company that markets organic and environmentally friendly
gardening and landscaping supplies and equipment, wants to expand the business internationally.
Growing Green managers are currently examining the rules imposed by the WTO and the
agreements made by NAFTA and the EU. In which stage of the international marketing process
is Growing Green?
A) deciding on the global pricing strategies
B) deciding which markets to enter
C) deciding how to enter the market
D) deciding on the global marketing program
E) looking at the global marketing environment
21) A(n) ________ community is a group of nations organized to work toward common goals in
the regulation of international trade.
A) joint venture
B) strategic marketing
C) economic
D) joint-stock
E) multilateral
22) Economic communities are also known as ________.
A) global firms
B) free trade zones
C) management communities
D) production communities
E) open channels
23) Which of the following is an example of an economic community?
A) NATO
B) BRIC
C) NAFTA
D) GATT
E) WTO
24) Formed in 1957, the ________ set out to create a single European market by reducing
barriers to the free flow of products, services, finances, and labor among member countries and
developing policies on trade with nonmember nations.
A) Uruguay Round
B) European Union
C) European Organization
D) European Central Bank
E) CAFTA
25) Which of the following is a threat posed by the EU?
A) Europe could heap favors on firms from EU countries but hinder outsiders by imposing
obstacles.
B) European companies have become less competitive.
C) European companies have begun to monopolize international markets.
D) The EU has toughened the international protection of copyrights, patents, and trademarks.
E) The EU has reduced Europe’s remaining merchandise tariffs by 30 percent.
26) The EU helped unify Europe by adopting the ________ as a common currency.
A) Eurodollar
B) euro
C) franc
D) Deutsche Mark
E) peseta
27) In 1994, ________ established a free trade zone among the United States, Canada, and
Mexico.
A) GATT
B) WTO
C) NAFTA
D) EU
E) CAFTA
28) Trusted Wholesalers is a company that purchases products produced in Mexico and sells
them to companies based in the United States and Canada. Management at Trusted Wholesalers
would most likely be interested in becoming experts in the policies developed by the ________.
A) EU
B) NAFTA
C) CAFTA-DR
D) APTA
E) BRIC
29) In 2005, the ________ established a free trade zone between the United States and Costa
Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, and Nicaragua.
A) CAFTA-DR
B) FTAA
C) CAN
D) NAFTA
E) EU
30) Trusted Wholesalers is a company that currently purchases products made in Mexico and
sells them to companies based in the United States and Canada. Trusted Wholesalers is
considering whether to also purchase products produced in Costa Rica and the Dominican
Republic. To make their decision, members of management at Trusted Wholesalers will most
likely evaluate the agreements made by ________.
A) the EU
B) NAFTA
C) CAFTA-DR
D) MCAN
E) UNASUR
31) Formed in 2004 and formalized in 2008, ________ makes up the largest trading block after
NAFTA and the European Union.
A) CAFTA-DR
B) FTAA
C) UNASUR
D) MCAN
E) GATT
32) The two key economic factors reflecting a country’s attractiveness as a market are its
industrial structure and its ________.
A) communication adaptation
B) nontariff trade barriers
C) exchange controls
D) income distribution
E) transportation systems
33) A country’s ________ shapes its product and service needs, income levels, and employment
levels.
A) international trade system
B) income distribution
C) industrial structure
D) political structure
E) foreign exchange system
34) Which of the following is a type of industrial structure?
A) marketing economies
B) subsistence economies
C) laissez-faire economies
D) capitalistic economies
E) socialistic economies
35) In a(n) ________, the vast majority of people engage in simple agriculture and consume
most of their output.
A) raw material economy
B) subsistence economy
C) industrializing economy
D) emerging economy
E) industrial economy
36) Which of the following industrial structures presents the fewest market opportunities?
A) subsistence economies
B) raw material exporting economies
C) industrializing economies
D) emerging economies
E) industrial economies
37) A(n) ________ economy is rich in one or more natural resources but poor in other ways and
much of its revenue comes from exporting its natural resources.
A) industrial
B) industrializing
C) raw material exporting
D) subsistence
E) agrarian
38) Which of the following is an example of a raw material exporting economy?
A) Sweden
B) Russia
C) the United Kingdom
D) Chile
E) Brazil
39) Coffee, tea, cotton, and tobacco are the main exports of Uganda. It is most likely that Uganda
has a(n) ________ economy.
A) subsistence
B) marketing
C) merchandise exporting
D) raw material exporting
E) industrializing
40) In a(n) ________ economy, fast growth in manufacturing results in rapid overall economic
growth.
A) industrial
B) industrializing
C) materials exporting
D) subsistence
E) agrarian
41) BRIC countries are examples of ________ economies.
A) raw material exporting
B) industrializing
C) subsistence
D) industrial
E) totalitarian
42) Which of the following characterizes emerging economies?
A) Industrialization typically creates a new rich class and a growing middle class, both
demanding new types of imported goods.
B) They trade goods among themselves and also export them to other types of economies for raw
materials and semifinished goods.
C) Most African countries fall into this category.
D) They consume most of their output and barter the rest for simple goods and services.
E) These countries are the best markets for large equipment, tools and supplies, and trucks.
43) The BRIC countries are ________.
A) Bolivia, the Republic of Haiti, Israel, and Chile
B) Britain, the Republic of the Marshall Islands, Ireland, and the Commonwealth of Australia
C) Brazil, Russia, India, and China
D) Burundi, Rwanda, Ivory Coast, and Congo
E) Belarus, Romania, Iceland, and Czech Republic
44) Industrializing economies are also known as ________ economies.
A) emerging
B) raw material exporting
C) totalitarian
D) subsistence
E) capitalist
45) India needs more imports of raw materials such as textiles, steel, and heavy machinery and
fewer imports of finished textiles, paper products, and automobiles. In the context of industrial
structures, India is most likely a(n) ________ economy.
A) subsistence
B) totalitarian
C) raw material exporting
D) agrarian
E) industrializing
46) ________ are major exporters of manufactured goods, services, and investment funds.
A) Raw material exporting economies
B) Subsistent economies
C) Industrializing economies
D) Industrial economies
E) Emerging economies
47) Which of the following is an example of an industrial economy?
A) Japan
B) China
C) Vietnam
D) India
E) North Korea
48) Countries with ________ economies consist mostly of households with very low family
incomes.
A) industrial
B) industrializing
C) raw material exporting
D) emerging
E) subsistence
49) The United States and Norway are examples of ________ economies.
A) subsistence
B) industrializing
C) emerging
D) industrial
E) raw material exporting
50) Foreign businesses in China appear to receive unusually close scrutiny and harsh treatment
from Chinese authorities, aimed at boosting the fortunes of local competitors. This includes trade
tariffs, quotas, restrictions, etc. This reflects that a country’s ________ should be carefully
considered before doing business in that country.
A) political-legal environment
B) industrial structure
C) cultural norms
D) natural resources
E) income distribution
51) Sellers might accept a(n) ________, one whose removal from the country is restricted by the
buyer’s government, if they can buy other goods in that country that they need themselves or can
sell elsewhere for a needed currency.
A) blocked currency
B) countervailing duty
C) custom duty
D) anti-dumping duty
E) tariff
52) Which of the following involves the direct exchange of goods and services?
A) cash transaction
B) compensation
C) buyback
D) blocked currency
E) barter
53) If Azerbaijan imported wheat from Romania in exchange for crude oil, and Vietnam
exchanged rice for Philippine fertilizer and coconuts then these scenarios would be examples of
________.
A) cash transaction
B) compensation
C) buyback
D) blocked currency
E) barter
54) Nike inadvertently offended Chinese officials when it ran an ad featuring LeBron James
crushing a number of revered Chinese figures in a kung fu–themed television ad. As a result,
Nike has to release a formal apology. This is an example of the impact of ________ on
marketing strategy.
A) culture
B) political stability
C) level of industrialization
D) income distribution
E) monetary regulations
55) Which of the following would a defender of globalization most likely use as an example to
argue that concerns of Americanization are overblown and that globalization is indeed a two-way
street?
A) the view of McDonald’s being a domestic brand in China
B) the growing popularity of coffee in China since the introduction of Starbucks
C) the growing number of IKEA furniture stores in the United States
D) the initial failure of Disneyland Paris
E) the anti-globalization protests aimed at KFC
56) Which of the following is the LEAST critical decision a company should make before going
abroad?
A) Can the company learn to understand buyer behavior of consumers in other countries?
B) Can the company offer competitively attractive products?
C) Can the company adapt to other countries’ business cultures?
D) How many foreign nationals should the company employ?
E) Do the company’s managers have the necessary international experience?
57) Demographic characteristics, geographic characteristics, economic factors, sociocultural
factors, and political and legal factors all help a company ________.
A) determine a market’s potential
B) determine a country’s degree of globalization
C) evaluate its marketing objectives
D) evaluate its value delivery network
E) determine a country’s income distribution
58) Which of the following is a demographic factor that a company should consider before
deciding to enter into a new country?
A) transportation structure
B) natural resources
C) political stability
D) languages
E) education
59) Which of the following is a sociocultural factor that a company should consider before
deciding to enter into a new country?
A) political stability
B) population density (urban vs. rural)
C) education
D) income distribution
E) consumer lifestyles, beliefs, and values
60) Which of the following is a geographic factor that a company should consider before
deciding to enter into a new country?
A) climate
B) population size
C) GDP size and growth
D) government bureaucracy
E) business norms and approaches