54. Which of the following is the latest round of World Trade Organization (WTO)?
a.
Mercosur covenant
b.
CAFTA Alliance
c.
Doha Round
d.
Uruguay Round
e.
WTO Round
55. In the wake of the global recession of 2008-2009, many countries have:
a.
aggressively sought new trade agreements
b.
all but eliminated tariffs and quotas
c.
tightened environmental regulations and improved working conditions for low-income
employees
d.
moved toward protectionism
e.
drastically reduced imports and exports
56. The North American Free Trade Agreement (NAFTA) did all of the following EXCEPT:
a.
created the world’s largest free-trade zone including Canada, the United States, and
Mexico
b.
substantially reduced economic growth in Mexico
c.
allowed U.S. and Canadian financial-services companies to own subsidiaries in Mexico
d.
removed many tariffs and duties so that Mexico, Canada, and the United States can trade
more freely
e.
expanded opportunities for U.S. businesses in Mexico
57. All of the following are countries included in the Central America Free Trade Agreement (CAFTA)
EXCEPT:
a.
United States
b.
Nicaragua
c.
El Salvador
d.
Guatemala
e.
Mexico
58. The goal of the Central America Free Trade Agreement (CAFTA) is to:
a.
create free-trade agreements between the United States and other industrialized nations
b.
eliminate all protectionism
c.
raise prosperity levels in all industrializing nations
d.
establish a free trade agreement between the United States and certain Latin American
countries
e.
make sure all nations achieve the economic and technological development of a takeover
economy or better
59. Which of the following statements about the European Union (EU) is true?
a.
The EU creates a single Europroduct for a generic Euroconsumer.
b.
The EU removes all internal trade barriers and standardizes regulations in European
countries for easier trade.
c.
The EU can correctly be called the “United States of Europe” because all European voters
have agreed to these changes.
d.
The existence of the EU eliminates protectionist movements by United Europe against the
Japanese and the United States.
e.
The European Union is one of the largest economies in the world.
60. Who offers low-interest loans to developing nations?
a.
World Bank
b.
International Monetary Fund
c.
Federal Reserve
d.
International Reserve
e.
United Nations
61. The International Monetary Fund (IMF) was founded in 1945 to:
a.
create a safe working environment for workers throughout the world
b.
promote trade through financial cooperation and eliminate trade barriers in the process
c.
create knowledge databases on a wide range of subjects for developing nations
d.
uncover economic fraud and corruption worldwide
e.
found “micro–banks” in developing nations
62. The G-20 has reached agreement regarding policies for all of the following EXCEPT:
a.
combating terrorist financing
b.
dealing with financial crises
c.
reducing abuse in the financial system
d.
streamlining wage and price controls
e.
economic growth
63. When developing countries began encouraging foreign investors and imports, companies like Black &
Decker and Pillsbury offered a wide array of products to countries throughout the world. Because of
enormous populations in developing countries, these companies predicted a potential for strong annual
sales. However, in addition to total population, companies must not overlook _____ factors such as
distribution of people within a country and household incomes.
a.
demographic
b.
political
c.
cultural
d.
educational
e.
country resource
64. A multinational company that makes a labor-intensive product would be interested in the _____
makeup of countries. Factors such as median age, gender, and literacy rates would determine the
success of its global expansion.
a.
demographic
b.
lifestyle
c.
natural
d.
cultural
e.
economic
65. Zambia is internationally recognized as the world’s second leading producer of cobalt, which is used
to make high-speed and high-temperature cutting tools and dyes. A company that wanted to
manufacture tools for shaping steel would be most attracted to which element of the Zambian
environment?
a.
Culture
b.
Legal
c.
Economic
d.
Technological
e.
Natural resources
66. Vast differences in natural resources create all of the following EXCEPT:
a.
potential for military intervention
b.
shifts in wealth between nations
c.
inflation and recession
d.
global dependencies
e.
export opportunities for countries with no natural resources
67. Which method of entering the global marketplace would be LEAST risky?
a.
exporting
b.
licensing
c.
contract manufacturing
d.
joint ventures
e.
direct investment
68. Which method of entering the global marketplace would be most risky?
a.
licensing
b.
direct investment
c.
contract manufacturing
d.
joint ventures
e.
exporting
69. The United States sells 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.
importing
b.
exporting
c.
tariff trading
d.
dumping
e.
licensing
70. 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
71. 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
72. 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
73. 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
74. 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
75. 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
76. _____ 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
77. 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
78. _____ 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
79. Franchising is a form of:
a.
contract marketing
b.
international exporting
c.
licensing
d.
direct exporting
e.
countertrading
80. 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
81. 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.
82. 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
83. 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
84. 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
85. _____ 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
86. 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
87. 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
88. Marnie and Jill both attended a party this weekend. Marnie arrived in a high-end designer dress made
by forever21. Jill’s dress looked exactly like Marnie’s dress, but its tag read simply K-Design. Jill’s
dress would best be described as a:
a.
counterfeit
b.
knockoff
c.
forgery
d.
sham
e.
third shift item
89. 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
90. Caterpillar, Inc. is the world’s largest manufacturer of earthmoving 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
91. Belgian Beer brewer InBev bought Anheuser-Bush for $52 billion. This is an example of a(n):
a.
export
b.
joint venture
c.
franchise
d.
licensed agreement
e.
direct foreign investment
92. _____ 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 investment
93. To enter the Chinese market, Walmart purchased the general merchandise chain Trust-Mart for about
$1 billion. Walmart entered the Chinese market through the use of:
a.
contract marketing
b.
direct investment
c.
franchising
d.
direct exporting
e.
countertrading
94. The first step in creating a 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
95. 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
96. 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
97. 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
98. 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
99. Chinese don’t like sweet cookies, and Kraft’s Oreos were not selling well. Chinese consumers also
thought the package was too expensive. Kraft introduced packages containing fewer Oreos at a
reduced price and also created a “Chinese Oreo” consisting of four layers of crispy wafer filled with
vanilla and chocolate cream, coated in chocolate. Which of the marketing mix strategies did Kraft use?
a.
Countertrading
b.
Product invention
c.
Global market standardization
d.
Product licensing
e.
Product adaptation
100. 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
101. Which country is considered to have the most complicated distribution system?
a.
India
b.
Germany
c.
Canada
d.
United States
e.
Japan