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c. Oil industry
d. Manufacturing industry
99. British Petroleum (BP) distributes petrol (or gasoline) to many countries around the world. BP changes the
petrol formula in order to meet each country’s regulations. This is an example of:
a. product adaptation.
b. straight extension.
c. product invention.
d. dual adaptation.
100. If the exchange rate for the Japanese yen is strong compared to the U.S. dollar, then:
a. U.S. imports from Japan will likely increase.
b. U.S. exports to Japan will likely increase.
c. Japanese exports to the U.S. will likely increase.
d. Import and export levels will remain the same.
101. Which of the following international market entry strategies is most likely to offer a competitive advantage
to the firms and is characterized by high levels of involvement and high risk potential?
a. Franchising
b. Sole sourcing
c. Foreign licensing
d. International direct investment
102. An organization that provides first-time exporters with expertise in locating foreign buyers, handling
paperwork, and conforming to local labeling and testing laws is called a(n):
a. export facilitator.
b. export-trading company.
c. trade assistance corporation.
d. export-management company.
103. Many American fast food sellers have engaged in product adaptation, changing their menus to accommodate
consumer tastes in countries like India and Japan. Other Western firms doing business abroad have engaged in promotion
adaptation. Which of the following factors would most likely prompt a firm to use the latter strategy?
a. Varying literacy rates
b. Currency fluctuations
c. Poor channels of distribution
d. Price competition
104. Thousands of country representatives have attended the Public Forum of the World Trade Organization
(WTO) since it was launched in 2001. Which topic would be unlikely to be put on the agenda for the meeting?
a. Mandatory sustainability standards
b. Public-private partnerships
c. Job creation
d. Infrastructure development
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e. Role of innovation and intellectual property
105. Luca owns paper making business. His products feature pressed flowers and a natural edge. He has had
great success selling his products in Italy and would like to now expand overseas to the United States. Luca
doesn’t have a lot of money to invest in this overseas expansion. Luca’s best option for a market entry strategy
would be:
a. exporting.
b. a joint venture.
c. franchising.
d. subcontracting.
106. A strategy for going global through contractual agreements in which the production of goods or services is
assigned to local companies is termed as _____.
a. sole sourcing
b. a differentiation strategy
c. an offset strategy
d. subcontracting
107. Coca-Cola is a worldwide manufacturer and distributor of carbonated beverages. A visit to its museum –
the World of Coca-Cola in Atlanta, GA – features a beverage lounge where visitors can sample beverages from
around the world. There are five tasting stations arranged geographically – Africa, Asia, Europe, Latin America,
and North America. Each station offers different beverages to sample that are unique to that region. What aspect
of achieving global marketing success does the variety of products by geographic region represent?
a. The ability to adapt products to local preferences and culture.
b. The importance of packaging and avoiding colors that might have negative meanings.
c. The ability to segment the markets by region.
d. The importance of hiring local workers.
108. In the 1800s, more than 90 percent of Americans worked in the _____ industry.
a. shipping
b. automobile
c. service
d. farming
109. Cremant Cellars is a family-owned winery located in the Loire region of France. Cremant is a sparkling
wine and the winery owners are interested in gaining access to markets outside of France as a way to generate
alternative sources of revenue. The owner, Jacques, has met with several firms and decided to work with
Export Partners, a firm that has expertise in obtaining business with alcohol distributors across Europe as well
as Asia and the United States. Export Partners will also provide assistance in managing the necessary
paperwork, complying with local laws and regulations regarding proper labeling and food/beverage testing.
Export Partners is most likely serving as a(n) ___________ to assist Cremant Cellars with their international
expansion.
a. export-management company (EMC)
b. export-trading company (ETC)
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c. subcontractor
d. franchisor
110. Proctor & Gamble sells Head and Shoulders shampoo and conditioner in Brazil. The company uses similar
advertising and scents in Brazil as they do in the United States. This would be an example of:
a. a promotion adaptation strategy.
b. a product adaptation strategy.
c. a straight extension strategy.
d. a dual adaptation strategy.
111. A nation’s size, per-capita income, and stage of economic development determine its prospects as a host for
_____.
a. regional economic integration
b. international business expansion
c. free-trade association
d. public private partnership
112. D. J. International, a firm based in North America, is a leader in international sales and exports. The
company is not directly involved in the purchase and selling of goods but helps firms find customers for their
products in global markets. It also helps the companies handle all the legal formalities in foreign markets and
provides guidance regarding the local labeling and testing laws. D. J. International can be regarded as a(n):
a. export-management company.
b. export-trading company.
c. franchisee.
d. subcontractor.
113. Proctor & Gamble (P&G) recognized a need for clean drinking water for more than 1 billion people in
developing countries. The company developed PuR, a water purification packet that eliminates disease causing
microorganisms in drinking water. P&G is utilizing a:
a. dual adaptation strategy.
b. product invention strategy.
c. product adaptation strategy.
d. straight extension strategy.
114. A successful German fitness center would like to expand to other areas of Europe such as France and
Spain. The company has strong brand recognition in Germany and would like this to translate to new markets.
The fitness center’s best option for a market entry strategy is:
a. acquiring fitness centers in other countries.
b. joint ventures with fitness centers in Spain and France.
c. an international division.
d. franchising.
115. Which of the following actions generally helps marketers encounter new products, new approaches to
distribution, or clever new promotional ideas?
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a. Globalization
b. Developing core values
c. Market penetration
d. Product standardization
Indicate one or more answer choices that best complete the statement or answer the question.
116. Several countries on the African continent are disadvantaged by both low per-capita incomes and substandard
communications infrastructures. These countries are likely to be poor markets for _____ but good markets for ____.
a. cars, bicycles
b. recreational boats, fishing rods
c. cell phones, landline phones
d. restaurant supplies, kitchen tools
e. currency exchange, currency investment
117. As the CEO of a corporation with customers in every part of the globe, you hope to see more of the world’s nations
become members of the WTO. This would benefit firms like yours because the World Trade Organization:
a. serves as a forum for trade negotiations.
b. mediates trade disputes.
c. makes nonbinding but highly respected decisions.
d. provides technical assistance to developing countries.
e. monitors national trade policies.
118. Foreign licensing offers advantages to the manufacturer, such as:
a. low financial expenditures.
b. avoidance of import tariffs.
c. less risk than exporting products.
d. access to foreign partner’s distribution channels.
119. If a country did not import any goods and sold only what was produced within their borders, which of the
following would likely occur?
a. Consumers would have fewer choices of goods.
b. Prices on goods would decrease.
c. Prices on goods would increase.
d. Some types of products wouldn’t be available at all.
120. What is foreign licensing? What advantages does it offer over exporting and direct investment?
121. How has the economy in the United States changed in the recent years?
122. Describe the World Trade Organization (WTO). Discuss its role and policies in regulating trade barriers.
123. What are the different ways to achieve multinational economic integration? Why are some nations not keen
on entering into free trade?
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124. What is the European Union? What are its goals?
125. What are the economic factors that determine a nation’s prospect as a host for international business
expansion?
126. What is exporting? List out the various alternatives available for the first-time exporters to enter foreign
markets.
127. Why is global marketing important for a nation and its marketers?
128. What is international direct investment? What are the different forms of direct investment?
129. What is a franchise? What advantages does this strategy offer to international marketers?
130. What are the different product and promotion strategies that can be used by global marketers?
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Answer Key
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