Question 1

A U.S. licensor will be most successful at maintaining effective control over licensees and preventing them from voiding the contract by:

Accepted Answer

A)  using lawyers from both countries to write the licensing agreement.
B)  insisting that all licensees have a published code of ethics.
C)  receiving all the revenue earned by the licensees.
D)  locally registering patents and trademarks.E) A) and D)
F) A) and B)

Question 2

Which of the following statements is true of the term quota?

Accepted Answer

A)  It refers to a limit on the amount of a specific product that can enter a country.
B)  It refers to the exclusion of all products from certain countries or companies.
C)  It refers to a tax levied on the goods entering a country.
D)  It refers to an agreement to stimulate international trade.E) C) and D)
F) None of the above

Question 3

Discuss exports in the United States.

Accepted Answer

Answers will vary. Although some countri...

Question 4

_____ is a trade agreement that has dramatically lowered trade barriers worldwide. It led to the creation of the World Trade Organization.

Accepted Answer

A)  The European Agreement
B)  General Agreement on Tariffs and Trade
C)  The North American Free Trade Agreement
D)  The Uruguay RoundE) None of the above
F) A) and C)

Question 5

The owners of Fashion Spell, an apparel store based in the town of Lumberne, want to expand the store's business all over the world. In this case, which of the following strategies can help the owners of Fashion Spell achieve their objectives?

Accepted Answer

A)  Opening an e-commerce site
B)  Standardizing sizing of apparels
C)  Acting as an export broker
D)  Countertrading with foreign companiesE) A) and B)
F) B) and D)

Question 6

Of all the types of managers, the managers of global social media campaigns are the ones who need not be aware of the cultures of the countries in which they operate.

Accepted Answer

A) True 
 B)False

Question 7

Traditionally, marketing-oriented multinational corporations enable individual subsidiaries to compete independently in domestic markets.

Accepted Answer

A) True 
 B)False

Question 8

The Group of Twenty (G-20) was founded in 1945, one year after the creation of the World Bank, to promote trade through financial cooperation and eliminate trade barriers in the process.

Accepted Answer

A) True 
 B)False

Question 9

Melrow Inc., a U.S. firm, suffers heavy losses and lays off many of its employees. To reduce its manufacturing costs, it shifts its production units to another country where labor costs are less. In this scenario, Melrow Inc. is engaged in _____.

Accepted Answer

A)  licensing
B)  outsourcing
C)  franchising
D)  inshoringE) B) and C)
F) C) and D)

Question 10

Which of the following countries has the highest gross domestic product?

Accepted Answer

A)  Belwick, whose market value of final goods is $100 billion and market value of final services is $50 billion for two years
B)  Sparanthea, whose market value of intermediate goods is $200 billion and market value of intermediate services is $50 billion for a quarter year
C)  Zaneland, whose market value of final goods is $120 billion and market value of intermediate goods is $20 billion for a year
D)  Acquardica, whose market value of final goods is $170 billion and market value of final services is $90 billion for a yearE) B) and C)
F) A) and B)

Question 11

Which of the following statements is a characteristic of countertrade?

Accepted Answer

A)  It refers to a form of trade in which all or part of the payment for goods or services is in the form of other goods or services.
B)  It refers to the sale of an exported product at a price lower than that charged for the same or a like product in the ''home'' market of the exporter.
C)  It refers to the active ownership of a foreign company or of overseas manufacturing or marketing facilities.
D)  It refers to a system in which prices of different currencies move up and down based on the demand for and the supply of each currency.E) None of the above
F) A) and B)

Question 12

The Uruguay Round replaced General Agreement on Tariffs and Trade (GATT)  with _____.

Accepted Answer

A)  the European Union (EU) 
B)  the World Trade Organization (WTO) 
C)  the North American Free Trade Agreement (NAFT
A)  
D)  the International Monetary Fund (IMF) E) A) and D)
F) B) and C)

Question 13

The surge in global trade in recent years has added to strains and charges for all forms of transport.

Accepted Answer

A) True 
 B)False

Question 14

Currency markets operate under a system of _____, which is a system in which the prices of different currencies move up or down based on the demand for and the supply of each currency.

Accepted Answer

A)  countertrade
B)  floating exchange rates
C)  dumping
D)  contract manufacturingE) B) and C)
F) A) and D)

Question 15

Maria Apparel is a well-known apparel store. The owners of the store want the store to go global; hence, they have opened a Web site. In this scenario, opening a Web site:

Accepted Answer

A)  makes it difficult for Maria Apparel to go global through the Internet.
B)  frees Maria Apparel from old brick-and-mortar rules, regulations, and habits.
C)  immediately puts Maria Apparel in the international marketplace.
D)  stops Maria Apparel from selling products in its physical stores.E) A) and B)
F) A) and C)

Question 16

The four Ps of global marketing strategy are product, place, promotion, and price.

Accepted Answer

A) True 
 B)False

Question 17

Average family incomes are higher in more developed countries than in less developed countries.

Accepted Answer

A) True 
 B)False

Question 18

Nessca Motors, a well-known company based in Nebolina, manufactures engines. Its management recently signed a joint venture with Singletone Inc., a company based in Trinitia. Given this information, which of the following statements will most likely be true?

Accepted Answer

A)  The government of Trinitia will restrict Nessca Motors's entry to the country.
B)  Nessca Motors and Singletone Inc.will switch to contract manufacturing as the next step.
C)  Nessca Motors may buy a part of Singletone Inc.
D)  Singletone Inc. will pay royalty to Nessca Motors.E) B) and C)
F) A) and B)

Question 19

Aztic Inc., a manufacturer of sports goods, plans to expand its operations to various other countries. After market research, it avoids countries where the dominant population is mostly rural. In this case, Aztic Inc. is assessing the _____ of the countries.

Accepted Answer

A)  political structure
B)  natural resources
C)  legal environment
D)  demographic makeupE) A) and B)
F) A) and C)

Question 20

Which of the following a difference between a quota and a boycott?

Accepted Answer

A)  A boycott is a limit on the amount of goods entering a country, whereas a quota is a tax levied on goods entering a country.
B)  A boycott is the revenue received from international trade, whereas a quota is the revenue received from domestic trade.
C)  A boycott is used to include all foreign competition, whereas a quota is used by governments to exclude companies from countries with which they have a political dispute.
D)  A boycott is the exclusion of all products from certain countries or companies, whereas a quota is a means of protection from foreign competition.E) None of the above
F) All of the above

Exam 5: Developing a Global Vision

Which of the following a difference between a quota and a boycott?

Correct AnswerverifiedShow Answer

The Uruguay Round replaced General Agreement on Tariffs and Trade (GATT) with _____.

Correct AnswerverifiedShow Answer

Discuss exports in the United States.

Correct AnswerverifiedAnswers will vary. Although some countri...View AnswerShow Answer

The four Ps of global marketing strategy are product, place, promotion, and price.

Correct AnswerverifiedShow Answer

A U.S. licensor will be most successful at maintaining effective control over licensees and preventing them from voiding the contract by:

Correct AnswerverifiedShow Answer

The owners of Fashion Spell, an apparel store based in the town of Lumberne, want to expand the store's business all over the world. In this case, which of the following strategies can help the owners of Fashion Spell achieve their objectives?

Correct AnswerverifiedShow Answer

Maria Apparel is a well-known apparel store. The owners of the store want the store to go global; hence, they have opened a Web site. In this scenario, opening a Web site:

Correct AnswerverifiedShow Answer

Which of the following countries has the highest gross domestic product?

Correct AnswerverifiedShow Answer

Nessca Motors, a well-known company based in Nebolina, manufactures engines. Its management recently signed a joint venture with Singletone Inc., a company based in Trinitia. Given this information, which of the following statements will most likely be true?

Correct AnswerverifiedShow Answer

Currency markets operate under a system of _____, which is a system in which the prices of different currencies move up or down based on the demand for and the supply of each currency.

Correct AnswerverifiedShow Answer

Of all the types of managers, the managers of global social media campaigns are the ones who need not be aware of the cultures of the countries in which they operate.

Correct AnswerverifiedShow Answer

Which of the following statements is a characteristic of countertrade?

Correct AnswerverifiedShow Answer

The Group of Twenty (G-20) was founded in 1945, one year after the creation of the World Bank, to promote trade through financial cooperation and eliminate trade barriers in the process.

Correct AnswerverifiedShow Answer

Which of the following statements is true of the term quota?

Correct AnswerverifiedShow Answer

_____ is a trade agreement that has dramatically lowered trade barriers worldwide. It led to the creation of the World Trade Organization.

Correct AnswerverifiedShow Answer

The surge in global trade in recent years has added to strains and charges for all forms of transport.

Correct AnswerverifiedShow Answer

Aztic Inc., a manufacturer of sports goods, plans to expand its operations to various other countries. After market research, it avoids countries where the dominant population is mostly rural. In this case, Aztic Inc. is assessing the _____ of the countries.

Correct AnswerverifiedShow Answer

Average family incomes are higher in more developed countries than in less developed countries.

Correct AnswerverifiedShow Answer

Traditionally, marketing-oriented multinational corporations enable individual subsidiaries to compete independently in domestic markets.

Correct AnswerverifiedShow Answer

Melrow Inc., a U.S. firm, suffers heavy losses and lays off many of its employees. To reduce its manufacturing costs, it shifts its production units to another country where labor costs are less. In this scenario, Melrow Inc. is engaged in _____.

Correct AnswerverifiedShow Answer

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