GLOBAL MARKETING

Question 1

Marketing domestically
produced goods and services in foreign
countries

Answer 1

EXPORTING

Question 2

Purchasing foreign goods and
services

Answer 2

IMPORTING

Question 3

is an important economic
factor to consider when planning to enter a
foreign market

Answer 3

INFRASTRUCTURE

Question 4

Price of one nation’s currency
in terms of another country’s currency

Answer 4

EXCHANGE RATE

Question 5

Tax levied against imported goods

Answer 5

TARIFF

Question 6

Designed to raise funds for
the importing government

Answer 6

REVENUE TARIFFS

Question 7

Designed to raise the retail
price of an imported product to match or
exceed that of a similar domestic product

Answer 7

PROTECTED TARIFFS

Question 8

Limit the number of units of products in certain categories that can cross a
country’s border for resale

Answer 8

IMPORT QUOTAS

Question 9

Complete ban on the import of specified products

Answer 9

EMBARGO

Question 10

Government financial support of a
private industry

Answer 10

SUBSIDIES

Question 11

Method used to regulate
international trade among importing
organizations by controlling access to foreign
currencies

Answer 11

EXCHANGE CONTROL

Question 12

Controversial practice of selling a product in a foreign market at a price lower than what it receives in the producer’s domestic
market

Answer 12

DUMPING

Question 13

which participating
nations agree to free trade among themselves, abolishing tariffs and trade
restrictions

Answer 13

FREE TRADE AREA

Question 14

establishes a free-trade area and uniform tariffs for nonmember nations

Answer 14

CUSTOM UNION

Question 15

extends a customs union
by seeking to reconcile all government regulations affecting trade

Answer 15

COMMON MARKET

Question 16

(GATT)

Answer 16

General Agreement on Tariffs and Trade

Question 17

(NAFTA)

Answer 17

North American Free Trade Agreement

Question 17

(WTO)

Answer 17

World Trade Organization

Question 18

(CAFTA-DR)

Answer 18

Central American Free Trade Agreement–DR

Question 19

(EU)

Answer 19

European Union

Question 20

Strategies for Entering Foreign
Markets

Three basic choices

Answer 20

1. Importing and exporting
2. Contractual agreements such as franchising,
   licensing, and subcontracting
3. International direct investment

Question 21

Contractual arrangement in which a
wholesaler or retailer agrees to meet the
operating requirements of a manufacturer
or other franchiser

Answer 21

FRANCHISING

Question 22

Agreement that grants foreign marketers
the right to distribute a firm’s merchandise
or to use its trademark, patent, or process in
a specified geographic area

Answer 22

FOREIGN LICENSING

Question 23

Contractual agreements that assign the
production of goods or services to local or
smaller firms

Answer 23

SUBCONTRACTING

Question 24

Significant operations and marketing activities outside its home country

Answer 24

Multinational corporation

Question 25

Standardized marketing mix with minimal modifications that a firm uses in all of its domestic and foreign markets

Answer 25

Global marketing strategy

Question 26

Application of market segmentation to foreign markets by tailoring the firm’s marketing mix to match specific target markets in each nation

Answer 26

Multidomestic marketing strategy

Question 27

Form of exporting whereby goods and services are bartered rather than sold for cash

Answer 27

Countertrade