Question 1

The world's largest manufacturer of peppermint candy canes was located in Albany, Georgia, until it could no longer afford to buy the sugar needed for its operation. It moved its manufacturing business to Mexico where there are no restrictions (like those that exist in the United States)  on the amount of sugar that can be brought into the nation. The business moved to Mexico because of ________ established by the U.S. government.

Accepted Answer

A)   a tariff
B)   a trade imbalance
C)   an excise tax
D)   a subsidy
E)   a quota

Question 2

The Economic Espionage Act

Accepted Answer

A)   allows the World Court in The Hague to adjudicate trade disputes on behalf of UN members and requires the home country to impose any penalties.
B)   imposes a personal fine on a convicted U.S. citizen of up to $10 million.
C)   targets espionage activities that are commonplace in any industry that holds governmental contracts.
D)   makes the theft of trade secrets by foreign entities a federal crime in the United States.
E)   is well-intended in theory, but is virtually impossible to enforce.

Question 3

The ________ imposed on imported bananas by European Union countries cost consumers $2 billion a year in higher prices.

Accepted Answer

A)   boycotts
B)   quotas
C)   sanctions
D)   subsidies
E)   tariffs

Question 4

Which of the following is an advantage inherent in the use of licensing as a global market entry strategy?

Accepted Answer

A)   The licensor retains control of its product.
B)   The licensor is protected from creating a potential competitor.
C)   It provides an exemption from domestic trade regulations.
D)   There is an increase in potential profit compared with direct investment.
E)   The licensee gains information that can help it start with a competitive advantage.

Question 5

In Latvia, only one six-lane highway exists, connecting Riga, its capital, with Moscow. Otherwise, the roads are two lanes and many are made of cobblestones or bricks. This limits the speed with which deliveries can be made and requires that delivery trucks be quite small. The road network in Latvia is an example of problems with a country's

Accepted Answer

A)   capital improvements.
B)   fixed-asset base.
C)   geopolitical wealth.
D)   asset wealth.
E)   economic infrastructure.

Question 6

The estimated cost of economic espionage to firms in the United States is estimated to be

Accepted Answer

A)   $10 billion per year.
B)   $150 billion per year.
C)   $600 billion per year.
D)   $950 billion per year.
E)   exceeding $2 trillion per year.

Question 7

Recently, the Japanese government, under pressure from its domestic farm lobby, slapped government taxes on mushrooms, leeks, and the reeds used in tatami mats that were being imported from China. The taxes Japan levied are referred to as

Accepted Answer

A)   WTO taxes.
B)   quotas.
C)   tariffs.
D)   excise taxes.
E)   subsidies.

Question 8

Explain the trade feedback effect.

Accepted Answer

Increased demand for exports of other na...

Question 9

The administrative, marketing, and manufacturing operations that many international firms, multinational firms, and transnational firms have around the world are often called

Accepted Answer

A)   subsidiaries.
B)   outlets.
C)   departments.
D)   markets.
E)   holding companies.

Question 10

A(n)  ________ firm views the world as one market and emphasizes cultural similarities across countries or universal consumer needs and wants more than differences.

Accepted Answer

A)   transcontinental
B)   multidomestic
C)   international
D)   multinational
E)   transnational

Question 11

A global brand refers to

Accepted Answer

A)   two or more domestic products that coincidentally share the same brand name but represent two completely unrelated products.
B)   two or more international products that coincidentally share the same brand name but represent two completely unrelated products.
C)   a brand marketed under the same name in multiple countries with similar and centrally coordinated marketing programs.
D)   a brand that is essentially the same but that has had minor adaptations made to meet the more specific needs of different nations.
E)   a brand marketed under different names in multiple countries with similar and centrally coordinated marketing programs.

Question 12

Adding to the complexity of global distribution is the need for ________, in addition to the channels within a foreign nation.

Accepted Answer

A)   parallel importing
B)   channels between nations
C)   communication adaptation
D)   product adaptation
E)   economic stability of the final consumer

Question 13

Explain the concept of countertrade, and discuss its importance.

Accepted Answer

Not all trade involves the exchange of m...

Question 14

A small Canadian winery located in British Columbia has developed a new table wine. It has no overseas contacts but wants to get its wine on the shelves in selected Asian and European markets where growth has been substantial in the past two years. What type of exporting option would best suit this company?

Accepted Answer

A)   direct exporting
B)   licensing
C)   indirect exporting
D)   joint venture
E)   cooperative partnership

Question 15

Figure 6-5
-Global companies have five strategies for matching products and their promotion efforts to global markets. According to Figure 6-5, B refers to which type of strategy?

Accepted Answer

A)   product extension strategy
B)   communication adaptation strategy
C)   product adaptation strategy
D)   dual adaptation strategy
E)   product invention strategy

Question 16

The Foreign Corrupt Practices Act

Accepted Answer

A)   makes it a crime for U.S. corporations to bribe an official of a foreign government or political party to obtain or retain business in a foreign country.
B)   has different levels of punishment based upon the relative economic power of the host nation.
C)   regulates only the behavior of U.S. businesses conducting business within the United States.
D)   makes the theft of trade secrets by foreign entities a federal crime in the United States.
E)   is a unilateral agreement the United States made with several developing nations.

Question 17

The EU has benefited its member nations in part because

Accepted Answer

A)   there is a legally binding code of economic conduct.
B)   there is immunity against world recessions.
C)   there are fewer regulatory restrictions on transportation, advertising, and promotion.
D)   there is a common language advantage among EU consumers.
E)   most companies within the EU are engaging in strategic global partnerships.

Question 18

Economic espionage is the clandestine collection of trade secrets or

Accepted Answer

A)   government economic information.
B)   military intelligence.
C)   government security information.
D)   banking information.
E)   proprietary information about competitors.

Question 19

In indirect exporting, a firm sells its domestically produced products in a foreign country

Accepted Answer

A)   in violation of a quota.
B)   without paying import tariffs.
C)   without paying export duties.
D)   through a joint venture.
E)   through an intermediary.

Question 20

If you wanted to set up a business importing amber jewelry from Latvia to the United States, you would have to plan on paying the U.S. Customs Service a government tax of roughly 11 percent of the value of the product as

Accepted Answer

A)   a bribe.
B)   a tariff.
C)   a subsidy.
D)   an excise tax.
E)   a quota.

Exam 6: Understanding and Reaching Global Consumers and Markets

The administrative, marketing, and manufacturing operations that many international firms, multinational firms, and transnational firms have around the world are often called

Correct Answer
verified

Adding to the complexity of global distribution is the need for ________, in addition to the channels within a foreign nation.

Correct Answer
verified

A global brand refers to

Correct Answer
verified

Correct Answer
verified

Economic espionage is the clandestine collection of trade secrets or

Correct Answer
verified

The EU has benefited its member nations in part because

Correct Answer
verified

Explain the concept of countertrade, and discuss its importance.

Correct Answer
verified
Not all trade involves the exchange of m...
View Answer

The Economic Espionage Act

Correct Answer
verified

The estimated cost of economic espionage to firms in the United States is estimated to be

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Which of the following is an advantage inherent in the use of licensing as a global market entry strategy?

Correct Answer
verified

Figure 6-5 -Global companies have five strategies for matching products and their promotion efforts to global markets. According to Figure 6-5, B refers to which type of strategy?

Correct Answer
verified

Explain the trade feedback effect.

Correct Answer
verified
Increased demand for exports of other na...
View Answer

The Foreign Corrupt Practices Act

Correct Answer
verified

Recently, the Japanese government, under pressure from its domestic farm lobby, slapped government taxes on mushrooms, leeks, and the reeds used in tatami mats that were being imported from China. The taxes Japan levied are referred to as

Correct Answer
verified

A(n) ________ firm views the world as one market and emphasizes cultural similarities across countries or universal consumer needs and wants more than differences.

Correct Answer
verified

If you wanted to set up a business importing amber jewelry from Latvia to the United States, you would have to plan on paying the U.S. Customs Service a government tax of roughly 11 percent of the value of the product as

Correct Answer
verified

In indirect exporting, a firm sells its domestically produced products in a foreign country

Correct Answer
verified

The ________ imposed on imported bananas by European Union countries cost consumers $2 billion a year in higher prices.

Correct Answer
verified

Exam 6: Understanding and Reaching Global Consumers and Markets

The administrative, marketing, and manufacturing operations that many international firms, multinational firms, and transnational firms have around the world are often called

Correct AnswerverifiedShow Answer

Adding to the complexity of global distribution is the need for ________, in addition to the channels within a foreign nation.

Correct AnswerverifiedShow Answer

A global brand refers to

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Economic espionage is the clandestine collection of trade secrets or

Correct AnswerverifiedShow Answer

The EU has benefited its member nations in part because

Correct AnswerverifiedShow Answer

Explain the concept of countertrade, and discuss its importance.

Correct AnswerverifiedNot all trade involves the exchange of m...View AnswerShow Answer

The Economic Espionage Act

Correct AnswerverifiedShow Answer

The estimated cost of economic espionage to firms in the United States is estimated to be

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following is an advantage inherent in the use of licensing as a global market entry strategy?

Correct AnswerverifiedShow Answer

Figure 6-5 -Global companies have five strategies for matching products and their promotion efforts to global markets. According to Figure 6-5, B refers to which type of strategy?

Correct AnswerverifiedShow Answer

Explain the trade feedback effect.

Correct AnswerverifiedIncreased demand for exports of other na...View AnswerShow Answer

The Foreign Corrupt Practices Act

Correct AnswerverifiedShow Answer

Recently, the Japanese government, under pressure from its domestic farm lobby, slapped government taxes on mushrooms, leeks, and the reeds used in tatami mats that were being imported from China. The taxes Japan levied are referred to as

Correct AnswerverifiedShow Answer

A(n) ________ firm views the world as one market and emphasizes cultural similarities across countries or universal consumer needs and wants more than differences.

Correct AnswerverifiedShow Answer

If you wanted to set up a business importing amber jewelry from Latvia to the United States, you would have to plan on paying the U.S. Customs Service a government tax of roughly 11 percent of the value of the product as

Correct AnswerverifiedShow Answer

In indirect exporting, a firm sells its domestically produced products in a foreign country

Correct AnswerverifiedShow Answer

The ________ imposed on imported bananas by European Union countries cost consumers $2 billion a year in higher prices.

Correct AnswerverifiedShow Answer

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Not all trade involves the exchange of m...
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Increased demand for exports of other na...
View Answer

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