MKT 3023 Study Guide (2012-13 Goodrich)
- Florida International University
- Marketing 3023
- MKT 3023 Study Guide (2012-13 Goodrich)
Last Modified: 2013-06-30
Related Textbooks:PRIDE-FERRELL Marketing
Before the 1990s, most firms entered international markets
incrementally and slowly.
According to your text, ____ are small technology-based firms operating in international markets within two years of their establishment and realizing as much as 70 percent of their sales outside the domestic home market.
Approximately ____ of the world's purchasing power is outside of the United States.
The environmental forces that affect foreign markets may differ dramatically from those affecting domestic markets. This makes a careful _______ a critical part of a successful international marketing strategy.
Differences in standards of living, credit, buying power, and income distribution are all examples of _____ forces that must be considered in international marketing efforts.
A duty levied by a nation on goods bought outside its borders and brought inside is called a (n)
Which of the following is often used to raise revenue for a country and/or to protect domestic products?
If Tasmania levied a duty on all goods purchased from the United States and other countries outside its borders that were brought into Tasmania, its businesses and citizens would be paying a(n)
If Germany, in an attempt to bolster the sales of its own auto manufacturers, decided to limit the number of automobiles that could be brought in from other countries, Germany would be using a(n)
A limit on the amount of goods an importing country will accept for certain product categories during a specified time period is called a(n)
When a glove manufacturer in China is allowed to sell only a certain number of plastic gloves into Japan, that firm is facing a(n)
The United States' prohibition against importing cigars from Cuba is an example of a(n)
Government restrictions on the amount of a particular country's currency that can be bought or sold are known as
___________ can force businesspeople to buy and sell foreign products through a central agency, such as a central bank.
Which of the following is used to help maintain a more favorable balance of trade by a country?
The ___________ is the difference in value between a nation's exports and its imports.
balance of trade
The gross domestic product is
an overall measure of a nation's economic standing.
The country with the highest GDP is
the United States.
In considering the viability of potential international markets for Pepsi products, PepsiCo is advised to take into account __________, which provides insight into market potential.
per capita gross domestic product
The Mont Blanc Company plans to export expensive consumer gift items to Germany. The best overall economic measure of market potential would be Germany's
gross domestic product per capita.
Caterpillar would like to better understand factors that would affect its ability to market construction equipment in various countries. Which of the following forces determine how trade barriers affect Caterpillar's marketing efforts?
Political and legal
Special interest groups and regulatory bodies are ______ forces that must be taken into account in international marketing.
political and legal
Select the true statement.
Refusing to give payoffs and bribes in some foreign countries may put a marketer at a competitive disadvantage.
The Foreign Corrupt Practices Act of 1977 makes it illegal for U.S. firms to
attempt to make large payments or bribes to influence policy decisions of foreign governments.
If a certain country considered handshakes in business transactions to be taboo and preferred to use nodding, this would be an example of differences in _____ forces.
When products are introduced into one nation from another, acceptance is far more likely
if there are similarities between the two cultures.
Marketers of computer software, music CDs, and books are particularly affected by cultural differences in
standards regarding intellectual property.
Many companies choose to standardize their _____ across national boundaries to maintain a consistent and well-integrated corporate culture.
In many developing countries around the world, technology is enabling opportunities to "leapfrog" existing technology. What does this mean?
More advanced technology is reaching these countries even though they lack technological infrastructures.
The unconscious reference to one's own cultural values, experiences, and knowledge when encountering new and different cultures is known as
the self-reference criterion.
____ refers to the idea that morality varies from one culture to another and that businesspractices are therefore differentially defined as right or wrong by particular cultures.
By 2009, NAFTA will create a totally free trade area between the United States,
Canada, and Mexico
The agreement between the United States, Canada, and Mexico that merges these three countries into one marketplace is called
Wal-Mart is currently expanding its stores into Canada and Mexico. This expansion is being facilitated by the
North American Free Trade Agreement.
One of the effects of NAFTA is the simplification of country-of-origin rules. This will likely hinder the international trade activities of
Which of the following is not true of NAFTA?
Business licensing requirements have been increased.
Which of the following is true about NAFTA?
It remains politically controversial.
Another name for the European Union is
the Common Market.
The unification of Europe through the European Union (EU)
permits virtually free trade among the member nations of the EU.
The exchange rates of several European countries are linked together to a common currency, the
Johnston Chemicals' president is very excited about the possibility of the firm's British subsidiary having access to customers in the entire EU. He realizes that it will be some time before this area truly becomes one market, primarily because of differences in which of the following?
The trade alliance that includes Brazil, Argentina, Chile, and other countries is known as
Which of the following alliances/agreements is the United States not a part of?
The Common Market of the Southern Cone (MERCOSUR) includes countries from
Which of the following trade alliances differs from others in its commitment to facilitating business and its practice of allowing the private sector to participate in a wide range of activities?
Which of the following countries has made the greatest inroads into other world markets?
Many marketers claim that ____ will become the world's largest market.
Which of the following agreements provides a forum for tariff negotiations, reducing trade restrictions, resolution of international trade problems, and ground rules for international trade?
The World Trade Organization
If a newly formed country wanted to increase its international trade and reduce worldwide tariffs, it would most likely try to become a part of
The term dumping refers to the sale of
products sold in foreign countries at unfairly low prices.
If Hyundai, a Korean automobile manufacturing firm, started selling its cars at unfairly low prices to Germany, Hyundai would be engaging in
The World Trade Organization accomplishes all of the following except
lending money to businesses interested in developing international markets.
At the heart of the ____ are agreements that provide legal ground rules for international commerce and trade policy.
When a firm's products sell in foreign countries with little or no effort to obtain foreign sales, the firm is engaging in
Miller's Home Furnishings uses marketing strategies aimed at markets within the United States, its home country. Miller's engages in
Which of the following lists the levels of involvement in global marketing from the lowest to the highest?
Domestic marketing, limited exporting, international marketing, globalized marketing
The purchase of products from a foreign source is called
When the American company Exxon purchases crude oil from Saudi Arabia, it is engaging in
Henderson Synthetics' management believes that several of the firm's products could have sizable markets in other countries. To maintain a low level of commitment with minimum effort and cost, Henderson should engage in international marketing through
The extent of Raytheon's participation in global business is selling the batteries it manufactures to companies in Spain. In this case, Raytheon is a(n)
______ bring together buyers and sellers from different countries and collect a commission for arranging sales.
The role of export agents is to
bring buyers and sellers from different countries together and collect a commission for arranging sales.
How does using an exporting intermediary limit the risk involved with global marketing?
This approach involves limited risk because the company has no direct investment in the foreign country.
A company not involved in manufacturing that brings together buyers and sellers in different countries is usually referred to as a
A large farming cooperative that focuses on the production of fruits and vegetables uses a business that sells the farmers' products in foreign countries and also provides consulting,insurance, legal assistance, and warehousing to the cooperative. This business would most likely be called a(n)
A ___________ is an organization that links buyers and sellers in different countries but is not involved in manufacturing.
Questor Corporation owns the Spalding brand name but does not produce a single golf club or tennis ball. This arrangement is an example of what type of involvement level for international marketing?
If Caterpillar wished to reach the market in Malaysia but was leery of a direct investment in the country, it might provide a Malaysian operation with the knowledge to produce and market its products in exchange for a commission. This type of arrangement is called
What level of commitment in international marketing may be most attractive when the political and economic stability of a foreign country is questionable?
A special form of licensing in which one company grants another company the right to market its product in accordance with its standards in exchange for a financial commitment is called
In many countries, Wendy's allows foreign businesspeople to use its name, logo, methods of operation, advertising, and products. In exchange, Wendy's receives a financial commitment and an agreement to conduct business in accordance with its standard of operations. Wendy's is engaging in
Franchising offers all the following benefits for franchisers except
the franchisee's revenue stream is fairly consistent because franchisers pay fixed fees and royalties.
Which of the following would be a benefit to a franchiser, such as Jiffy Lube, in expandinginto international marketing?
The franchiser does not have to put up a large capital investment.
Which of the following describes a company hiring a foreign firm to produce a designated volume of its product to specification?
If The Limited Company relies on hiring a foreign textile manufacturer to produce a designated amount of clothing for its Express, Limited, and other stores, it is using
The contracting of noncore operations or jobs from internal production within a business to an external entity that specializes in that operation is known as
A business partnership between a domestic firm and a foreign firm is known as
a joint venture.
If a U.S. bicycle tire manufacturer has to form a partnership with the government of Indonesia in order to gain access to the country's rubber, a _____ has been formed.
Timex, a U.S. based watchmaker -- recently entered into a partnership agreement with the Australian government to make watches. What type of partnership agreement does this situation most likely represent?
Sometimes business partnerships are formed between traditional rivals competing for market share in the same product class. These partnerships are known as
Nuhitzu believes it has the technological expertise to produce communication systems that will be leaders around the globe. Boston Electronics is widely regarded as having excellent management systems and superior marketing programs. To utilize these strengths, the two firms might form a(n) ___________ to work together on a worldwide basis.
What is the primary distinction between a joint venture and a strategic alliance in international marketing?
A strategic alliance is formed by companies who have traditionally been rivals, which is not the case with a joint venture.
An alliance between Honda and Ford would most likely be classified as
a strategic alliance.
Once a company makes a long-term commitment to a foreign market that has a promisingpolitical and economic environment, which of the following options then emerges as a possibility?
In relation to international marketing, which of the following best describes direct ownership?
A company owns subsidiaries or facilities in foreign countries.
IKEA, a Swedish retailer of contemporary furniture, operates several stores in various Scandinavian countries, as well as in the United States and Canada. Which of the following describes IKEA's level of commitment to international marketing?
Firms that have operations or subsidiaries located in many countries are referred to as
Southern Tier Industries has operations in more than 30 foreign countries. The headquarters in Atlanta controls the entire organization while offering subsidiaries the freedom necessary to achieve success in local markets. Southern Tier Industries is an example of a(n)
Nestlé Food Company is a Swiss-based company that operates several divisions in the United States and other countries. This classifies Nestlé as a(n)
Japan's Sony Corporation is a prime example of a multinational enterprise. With this in mind, which of the following would most accurately characterize Sony's operations?
It has operations or subsidiaries in many different countries.
What is the greatest advantage to an organization of having a subsidiary in a foreign nation?
Increase in cross-cultural approaches to management that allows subsidiaries to develop their own identity
A subsidiary in a foreign country generally operates under
foreign management in order to develop a local identity.
Exporting, licensing, and using trading companies are preferred modes of international market entry for firms with a(n) ________ structure.
Which of the following centralizes all of the responsibility for international operations?
International division structures
Which of the following is most likely to engage in direct ownership activities internationally?
Internationally integrated structures
Globalization of marketing involves
developing a set of marketing strategies for the entire world or major regions of the world.
When asked where Laser Tools, Inc., markets its products, company president and founder Roger Helms says that "the world is just one big market." He feels anyone not taking this stance is systematically passing up profitable business. Helms's international marketing strategy is best described as
globalization of marketing.
Organizations that employ standardized products, promotion campaigns, and prices for all markets are practicing what is known as
Selling products that are not in demand in all world markets, such as hand-powered washing machines for use in countries where electricity is not universally available, represents an international marketing strategy focusing on
Standardizing many Nike and Adidas shoe models worldwide is an example of
Levi Strauss markets its denim jeans in many countries and develops its marketing strategyas if the world were a single market. This approach to selling a standardized product in all countries represents which type of international marketing?
Globalization of markets
Globalization of markets requires developing marketing strategies as if the world were one market. Which of the following marketing mix variables is most difficult to standardize for globalization?
Swiss-based Nestlé has taken a global approach to marketing its chocolate products. Which of the following is most easily standardized?
When Smithson Graphics decided to go international with its marketing effort, it adopted a global approach. Which factors did SG most likely experience difficulty as the firm applied a global strategy for marketing?
- Single-family homes
- Ford automobiles
- European vacations
- Diet Coke
- General Electric appliances
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