B116 - Ch.16 Flashcards
A small company with limited financial resources is advised to develop its international markets through direct investments. This is because direct investment is a low-risk commitment.
Select one:
True
False
False
Historically, Canada’s strong dollar contributed significantly to its negative trade balance in those years.
Select one:
True
False
False
The practice of selling goods in a foreign market at a price lower than they are sold in the domestic market is called
Select one:
a.
undercutting.
b.
predatory pricing.
c.
dumping.
d.
expatriate pricing.
e.
price fixing.
Feedback
c.
dumping.
The purpose of a trade barrier is to protect a country from too much foreign competition within its borders.
Select one:
True
False
True
Marketers are entering the Chinese market with a popular brand of children’s clothing. Hoping to save money and ensure a consistent brand image on the global market, they are planning to use a standardized IMC plan throughout the world, including the Chinese market. What advice would you give in this situation?
Select one:
a.
The appeal of the North American brand will be reinforced by the standardized campaign.
b.
The Chinese will be offended if the same campaign is not used.
c.
IMC plans can be standardized successfully in nearly all markets of the world.
d.
Brand image cannot be consistently delivered without standardization.
e.
Marketing communications strategies must be adapted to local customs and preference.
e.
Marketing communications strategies must be adapted to local customs and preference.
Which of the following is an example of an orderly market agreement?
Select one:
a.
OPEC
b.
trade in the United States
c.
NAFTA
d.
NATO
e.
the European Union
c.
NAFTA
NAFTA is a trilateral agreement involving Canada, the United States, and
Select one:
a.
Mexico.
b.
Australia.
c.
Britain.
d.
Europe.
e.
South America.
a.
Mexico.
A Canadian company may consider pursuing foreign markets because of domestic market saturation.
Select one:
True
False
True
A quota is a trade barrier.
Select one:
True
False
True
In the late 1980s, Japanese automobile producers could only export a certain number of automobiles to Canada. They therefore built Canadian production facilities to try and circumvent the
Select one:
a.
taxes.
b.
tariffs.
c.
boycott.
d.
embargo.
e.
quotas.
e.
quotas.
Which of the following products are Canada’s main exports?
Select one:
a.
electronic computers, petroleum, water, electricity, and semi-conductors
b.
industrial goods and materials, machinery and equipment, energy products, and automotive products
c.
lumber, telecommunications, water, and nickel
d.
automotive parts, lumber, and wheat
e.
lumber, water, nickel, and petroleum
b.
industrial goods and materials, machinery and equipment, energy products, and automotive products
The European Union has evolved into what type of trading agreement?
Select one:
a.
highly competitive
b.
non-tariff zone
c.
common market
d.
free trade agreement
e.
orderly market agreement
c.
common market
In direct exporting, a domestic firm uses domestic channels to distribute goods to final users in the foreign country.
Select one:
True
False
False
Volkswagen’s Vento went over well in Germany, but in Italy it had people holding their noses. To them, Vento means “fart.” Which important consideration of the consumer environment did Volkswagen overlook?
Select one:
a.
language
b.
motivation
c.
local content law
d.
idiosyncratic needs
e.
culture
a.
language
Canada’s largest trading partner is
Select one:
a.
the United Kingdom.
b.
Germany.
c.
Russia.
d.
Japan.
e.
the United States.
e.
the United States.
Language issues are rarely a barrier in a global marketing program.
Select one:
True
False
False
U.S.-made food products sold in Canada have a nutritional label glued over the label printed on the packaging. What kind of global environmental issue is this?
Select one:
a.
technological
b.
political
c.
protectionist
d.
infrastructure
e.
regulatory
e.
regulatory
Which of the following organizations is a cartel?
Select one:
a.
NAFTA
b.
De Beers Diamonds
c.
WTO
d.
OPEC
e.
the Canadian lumber industry
d.
OPEC
Segmenting markets on the basis of culture is important in global marketing.
Select one:
True
False
True
A specific limit on the amount of goods that may be imported into a country is a(n)
Select one:
a.
embargo.
b.
quota.
c.
cartel.
d.
trade limit.
e.
boycott.
b.
quota.
