Question 1

Sinesia is a country that has minimal sources of potable water.Given this information,which of the following is most likely to happen?

Accepted Answer

A)  ​Sinesia's international marketing will not be affected because petroleum is the only factor that affects international marketing.
B)  Sinesia will remain as an importer of foodstuffs.
C)  Sinesia will be an attractive target for military intervention. 
D)  ​Sinesia's wealth will be equal to that of the countries with rich sources of water.E) A) and B)
F) A) and C)

Question 2

Which of the following is a disadvantage of outsourcing?

Accepted Answer

A)  ​It reduces corporate growth.
B)  It reduces productivity and revenue growth.
C)  It causes production delays.
D)  ​It increases energy costs in the U.S.E) A) and B)
F) A) and C)

Question 3

Which of the following is a similarity between export brokers and export agents?

Accepted Answer

A)  ​Both act as hired purchasing agents for foreign customers operating in the exporter's home market.
B)  Both live in foreign countries and assist in international trade.
C)  Both assume all risks associated with selling a manufacturer's product in the international market.
D)  ​Both allow manufacturers to retain title for products.E) All of the above
F) B) and D)

Question 4

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

Accepted Answer

A)  The European Union​
B)  The General Agreement on Tariffs and Trade 
C)  The North American Free Trade Agreement 
D)  ​The Uruguay RoundE) A) and C)
F) All of the above

Question 5

Khokho's Coffee House was the first company to introduce flavored coffee in the global market.It sells coffee in several different flavors,such as blueberry,cinnamon,and cranberry,based on the flavors preferred in each country.In this scenario,Khokho's Coffee House is involved in _____.

Accepted Answer

A)  ​product invention
B)  promotion adaptation
C)  global marketing standardization 
D)  ​product adaptationE) None of the above
F) A) and B) A

Question 6

A multidomestic strategy occurs when multinational firms enable individual subsidiaries to compete independently in domestic markets.

Accepted Answer

A) True 
 B)False

Question 7

Unlike in joint ventures,in contract manufacturing,_____.

Accepted Answer

A)  ​a domestic firm need not invest in overseas plants and equipment.
B)  a domestic firm buys part of a foreign company.
C)  a domestic firm joins with a foreign company to create a new entity.
D)  ​a domestic firm does not agree on management strategies and policies.E) A) and C)
F) C) and D)

Question 8

Which of the following is 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) B) and C)
F) C) and D)

Question 9

_____ refers to the exclusion of all products from certain countries or companies.

Accepted Answer

A)  ​Tariff
B)  License
C)  Boycott
D)  ​QuotaE) A) and D)
F) A) and B)

Question 10

A(n) _____ is an intermediary who brings a buyer and a seller together.

Accepted Answer

A)  ​licenser
B)  export broker
C)  contract manufacturer
D)  ​export merchantE) None of the above
F) C) and D) B

Question 11

Which of the following is a factor that drives the popularity of imports in the U.S.?

Accepted Answer

A)  ​Lower wages compared to other countries that have high average wages
B)  Higher number of employees in the countries from where goods are imported
C)  Higher prices of products in the countries from where the goods are imported 
D)  ​Lower capacity of the equipment used for production in the exporting countriesE) B) and D)
F) B) and C)

Question 12

_____ 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)  ​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) C) and D)
F) B) and D) D

Question 13

Explain franchising.

Accepted Answer

Franchising is a form of licensing that...

Question 14

Explain the major role played by the Internet and social media in global marketing.

Accepted Answer

Answers will vary.In many respects,going...

Question 15

In a direct foreign investment,which of the following statements is true of direct investors?

Accepted Answer

A)  ​They do not have controlling interest of a firm in direct foreign investment.
B)  They possess the lowest potential risk.
C)  They have the highest potential reward.
D)  ​They have low minority interest in the foreign firm.E) None of the above
F) B) and C)

Question 16

In the context of direct foreign investment,direct investors have the lowest potential reward and the lowest potential risk.

Accepted Answer

A) True 
 B)False

Question 17

Of all the types of managers,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 18

Explain the legal structures that affect international trade.

Accepted Answer

Answers will vary.Many legal structures ...

Question 19

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.Given this information,which of the following statements is true?

Accepted Answer

A)  ​It will be difficult for Maria Apparel to go global through Internet.
B)  Maria Apparel is free from old brick-and-mortar rules, regulations, and habits.
C)  Opening a Web site immediately puts Maria Apparel in the international marketplace.
D)  ​Maria Apparel will stop selling products in its physical stores.E) A) and B)
F) None of the above

Question 20

Which of the following is a similarity between joint ventures and licensing agreements?

Accepted Answer

A)  ​Both involve joining with a foreign company to create a new entity. 
B)  Both depend heavily on contract manufacturing.
C)  Both are free from government interference.
D)  ​Both are free from risks.E) A) and B)
F) A) and C)

Exam 5: Developing a Global Vision

Sinesia is a country that has minimal sources of potable water.Given this information,which of the following is most likely to happen?

Correct AnswerverifiedShow Answer

Which of the following is a disadvantage of outsourcing?

Correct AnswerverifiedShow Answer

Which of the following is a similarity between export brokers and export agents?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Khokho's Coffee House was the first company to introduce flavored coffee in the global market.It sells coffee in several different flavors,such as blueberry,cinnamon,and cranberry,based on the flavors preferred in each country.In this scenario,Khokho's Coffee House is involved in _____.

Correct AnswerverifiedA

A multidomestic strategy occurs when multinational firms enable individual subsidiaries to compete independently in domestic markets.

Correct AnswerverifiedShow Answer

Unlike in joint ventures,in contract manufacturing,_____.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

_____ refers to the exclusion of all products from certain countries or companies.

Correct AnswerverifiedShow Answer

A(n) _____ is an intermediary who brings a buyer and a seller together.

Correct AnswerverifiedB

Which of the following is a factor that drives the popularity of imports in the U.S.?

Correct AnswerverifiedShow Answer

_____ 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 AnswerverifiedD

Explain franchising.

Correct Answerverified Franchising is a form of licensing that...View AnswerShow Answer

Explain the major role played by the Internet and social media in global marketing.

Correct AnswerverifiedAnswers will vary.In many respects,going...View AnswerShow Answer

In a direct foreign investment,which of the following statements is true of direct investors?

Correct AnswerverifiedShow Answer

In the context of direct foreign investment,direct investors have the lowest potential reward and the lowest potential risk.

Correct AnswerverifiedShow Answer

Of all the types of managers,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

Explain the legal structures that affect international trade.

Correct AnswerverifiedAnswers will vary.Many legal structures ...View AnswerShow 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.Given this information,which of the following statements is true?

Correct AnswerverifiedShow Answer

Which of the following is a similarity between joint ventures and licensing agreements?

Correct AnswerverifiedShow Answer

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A

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B

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D

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Franchising is a form of licensing that...
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Answers will vary.In many respects,going...
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Answers will vary.Many legal structures ...
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