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trade.
a.
True
b.
False
142. The World Trade Organization was an important outcome of the unification of Europe.
a.
True
b.
False
143. Domestic marketing involves marketing strategies aimed at markets within the home country.
a.
True
b.
False
144. Importing is the sale of products to foreign markets.
a.
True
b.
False
145. The job of the export agent is to bring together buyers and sellers from different countries.
a.
True
b.
False
146. A trading company provides a link between buyers and sellers in different countries.
a.
True
b.
False
147. Under a licensing arrangement, the licensee pays commissions or royalties on sales or supplies used in
manufacturing.
a.
True
b.
False
148. Franchising is an arrangement whereby a franchisee grants a franchiser the right to market its product, using its
name, logo, methods of operation, advertising, products, and other elements of the franchising company's business, in
return for a financial commitment and an agreement to conduct business in accordance with the franchisee's standard of
operations.
a.
True
b.
False
149. Contract manufacturing occurs when a firm pays a commission or royalties on sales or supplies used in
manufacturing.
a.
True
b.
False
150. The joint venture approach has little appeal to industries involved in extraction of natural resources.
a.
True
b.
False
151. A multinational enterprise is a firm that has operations or subsidiaries located in many countries.
a.
True
b.
False
152. It is impossible for a subsidiary to develop a local identity because it seldom employs personnel from the country
within which it operates.
a.
True
b.
False
153. The greatest danger in becoming involved in direct ownership in international marketing is political uncertainty.
a.
True
b.
False
154. A subsidiary operating in a foreign country may have important tax, tariff, and other operating advantages over a
licensing agreement or a joint venture.
a.
True
b.
False
155. Exporting, licensing and franchising, trading companies, contract manufacturing, and joint ventures are preferred
modes of international market entry for firms with an export department structure.
a.
True
b.
False
156. Firms that use an international division structure are often organized domestically on the basis of functions or
product divisions, whereas the international division is organized on the basis of geography.
a.
True
b.
False
157. Firms with internationally integrated structures are the least likely to engage in direct ownership activities
internationally.
a.
True
b.
False
158. Globalization of marketing involves developing marketing strategies as though the entire world (or major regions of
it) were a single entity.
a.
True
b.
False
159. Media allocation, retail outlets, and price are among the easiest marketing mix variables to standardize.
a.
True
b.
False
160. Brand name, product characteristics, packaging, and media allocation are among the easiest marketing mix variables
to standardize around the world.
a.
True
b.
False
161. Regardless of the extent to which a firm chooses to globalize its marketing strategy, extensive environmental analysis
and marketing research are necessary to understand the needs and desires of the target market(s) and successfully
implement the chosen marketing strategy.
a.
True
b.
False
162. _____________ are companies that were started with the knowledge and resources to compete in a global
marketplace. They are usually small technology companies that quickly establish themselves in international markets.
They reach a point where as much as ________ percent of their sales come from locations outside the United States.
a.
Multinationals; 80
b.
International enterprises; 60
c.
Global techs; 50
d.
Global tigers; 75
e.
Born globals; 70
163. The international marketplace offers a new set of challenges for the marketer to navigate. There are multiple forces
that must be overcome if the firm’s marketing strategies are to be successful in international markets. For example, some
countries have import tariffs and quotas that restrict the flow of foreign products into their domestic markets. This is an
example of which of the following environmental forces present in international markets?
a.
Political, Legal and Regulatory Forces
b.
Sociocultural Forces
c.
Ethical and Social Responsibility Forces
d.
Competitive Forces
e.
Economic Forces
164. The trade agreement that links Mexico, Canada and Unites States into one economic market is called which one of
the following?
a.
European Union
b.
MERCOSUR
c.
Central American Free Trade Agreement
d.
APEC
e.
NAFTA
165. Because firms have different resources and core competencies, their international marketing strategies will also be
different. Nevertheless, any firm seeking to be successful in international markets must establish the right organizational
structure for its core competencies and resources. Which of the following is a valid international organizational structure?
a.
Geographic area structure
b.
Non-Domestic structure
c.
Domicile structure
d.
Sales department structure
e.
Overseas operations structure
166. The ______________ of marketing suggests that firms should adopt marketing strategies as though the entire world
was one single marketplace. These firms would then market ___________ products using the same marketing mix
everywhere in the world.
a.
internationalization; customized
b.
globalization; customized
c.
flexibility; standardized
d.
globalization; standardized
e.
international vision; custom
167. U.S. businesses are increasingly recognizing that international markets provide enormous opportunities for growth
and profit. ___________companies are entering international markets and quickly realizing as much as 70 percent of their
sales outside the domestic market within two years.
a.
Joint venture
b.
Born global
c.
Internationally integrated
d.
Export
e.
Trading
168. Sociocultural forces in international markets keep marketer busy trying to understand local preferences, tastes,
customs and idioms. The marketer’s failure to understand these forces almost certainly leads to failures in the marketing
strategies used. Which one of the following statements about the sociocultural forces in international markets is true?
a.
Cultural differences do not affect marketing negotiations and decision-making behavior.
b.
Buyers’ perceptions of other countries do not influence product adoption and use.
c.
Cultural differences do not have significant effects on marketing activities.
d.
Transferring marketing logos, trademarks and symbols is usually an easy process when entering international
markets.
e.
Product acceptance in an international market is more likely if similarities exist between buyer and seller
cultures.
169. The North American Free Trade Agreement (NAFTA) ___________ tariffs on goods produced in and traded
between Canada, Mexico and the United States.
a.
doubled
b.
tripled
c.
introduced
d.
eliminated
e.
extended
170. A ______________ links buyers and sellers in different countries but it has no manufacturing capability. It most
important function is ___________ to products and moving them from the domestic country to the foreign country.
a.
joint venture; adding customizations
b.
foreign subsidiary; taking title
c.
trading company; adding value
d.
foreign subsidiary; adding value
e.
trading company; taking title
171. The internationally integrated structure is one type of organizational structure used by U.S. firms for their
international operations. Which of the following statements is true about internationally integrated structures?
a.
There are five types of internationally integrated structures.
b.
The international subsidiary is one type of internationally integrated structure.
c.
The matrix structure is not a type of internationally integrated structure.
d.
The product division structure is one type of internationally integrated structure.
e.
The geographic area structure is not a type of internationally integrated structure.
172. Brand name, product characteristics, packaging, and labeling are some of the ______________ marketing mix
variables to standardize for international markets.
a.
most difficult
b.
most urgent
c.
easiest
d.
most expensive
e.
most culturally sensitive
