Marketing Chap 5 Flashcards
Joint ventures prevent a local firm from acquiring managerial skills and new technology.
False
According to the principles of free trade, each country should specialize in the products or services that it can produce easily and cheaply and trade those products or services for goods and services that foreign countries can produce easily and cheaply.
True
Using a capital-intensive technology refers to spending less money for equipment than labor in the production process
False
The Group of Twenty (G-20) 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.
False
Traditionally, companies utilizing a multidomestic strategy enable individual subsidiaries to compete independently in domestic markets
True
In Brexit negotiations, the most difficult problem is Ireland because Brexit could mean establishing a border on the island of Ireland
True
Given the United States’ current balance of trade, if more U.S. firms export their goods, the country’s balance of trade will improve
True
Opening an e-commerce site on the internet makes it difficult for a company to gain profit in the international marketplace
False
As a multinational, the Columbia Steel Company recognizes that complex global supply chains have brought about a situation in which partners took or copied technology
True
Political pressure has resulted in some U.S. multinationals bringing more production back home, boosting domestic manufacturing, and creating jobs
True
In order to enter a global market, companies often form multinational partnerships—called “strategic alliances”—to help them get started
False
Globalization expands economic freedom, spurs competition, and lowers the productivity and living standards of people in countries that open themselves to the global marketplace
False
- About half of services trade is made possible by digital technology.
True
- Solving promotional and product problems does not guarantee global marketing success.
True
- If a country can boost exports and limit imports, then fewer jobs are created and there is more competition for local businesses.
False
- “Borderless commerce” and the global “internet economy” have not been restrained by traditional brick-and-mortar rules, regulations, and habits.
False
- Global marketing is a one-way street whereby only U.S. companies sell their wares and services throughout the world.
False
- “Brexit” refers to the UK’s exit from the European Union. The problem is that, after Brexit, the UK seeks a closer trade relationship than the EU will allow because the UK won’t permit free movement of EU citizens.
True
- The ability of multinationals to tap financial, physical, and human resources from all over the world and combine them economically and profitably can benefit any country.
True
- The four Ps of global marketing strategy are product, place, promotion, and price.
True
- Dumping has led to significant disagreements among countries and diverse views about its harmfulness.
True
- Which of the following companies is in the first stage of developing a global business?
a. The Footwear Corp., which manufactures shoes and boots in a small town in Lucitona, sells its products to several countries around the world.
b. Laelle Inc. is based in Euphonia and has set up several subsidiaries to manage its business in another country.
c. Fournotts Bros., which is based in Datford, is opening a new line of business in a neighboring country.
d. Rues and West Inc., operated in Yucatan, is operating an entire line of business in another country.
a. The Footwear Corp., which manufactures shoes and boots in a small town in Lucitona, sells its products to several countries around the world.
- Amazon is replacing some fulfillment center jobs with robots that pack orders. Amazon is replacing some workers at its fulfillment centers. The machines are automating one of Amazon’s most common job roles held by people: Packing orders. The rollout could cut more than 1,300 jobs across 55 fulfillment centers. This example shows that _______.
automation technologies could become be a global job eliminator
- Including much of Europe, the _____ is one of the world’s most important free trade zones. It is also a political and economic community composed of more than 510 million citizens.
EU
- At the Horizons Company, Paul is an intermediary in the global market, and he assumes all ownership risks and sells globally for its own account. Paul serves as _______.
a buyer for export
- Yaozu wants to open up a Pizza Hut franchise in Belgium. Pizza Hut is the world’s largest pizza restaurant company with more than 6,200 restaurants in the United States and more than 4,000 restaurants in 100 other countries. Pizza Hut has been making pizza America loves for 50 years. What would you tell Yaozu about opening up a Pizza Hut franchise?
Franchises offer consistency.
- Bueno is a company in Mexico that produces T-shirts for domestic and international customers. Bueno wants to use the well-known design of a popular Disney character, Mickey Mouse, on its products. What advice would you give Bueno?
Secure a licensing agreement from Disney Inc.
- Apple sells its iPhones all over the world without any modifications in the design. The iPhone purchased in New York is the same as the iPhone purchased in Shanghai. This is an example of _______.
global marketing standardization
- As a developing nation, India has relied on assistance for building roads, power plants, schools, and hospitals. In order to receive assistance, the government of India has lower trade barriers and fosters private business. Many high-tech start-ups and call centers are now located in India. This example illustrates the function of the _______.
World Bank
- A business that requires a greater expenditure for equipment than for labor is called _______.
capital intensive
- A country has a(n) _______ when it can produce a product or service at a lower cost than any other country or when it is the only country that can provide the product or service.
Absolute Advantage
- Bryan wants to start a global business, but he is afraid of taking on too much risk. If you were advising Bryan, which of the following global entry strategies would you recommend?
Exporting
- Diego has a small business in California that manufactures custom-made, colorful, hand-painted furniture such as chairs, tables, and benches. He would like to expand his business into international markets because of all the following reasons EXCEPT _______.
To Increase Excess inventory
- Global Express Guaranteed® (GXG) is the fastest international shipping option from the U.S. Postal Service® with international transportation and delivery by FedEx Express. GXG offers date-certain delivery in one to three business days to more than 190 countries with a money-back guarantee. This example shows that _______.
global shippers solve international e-commerce distribution complexities
Otani is a Japanese e-commerce company that is building an American e-commerce company in South Carolina with administration, sourcing, logistics, and data centers all based in America. This arrangement is an example of a(n) _______.
foreign direct investment
- Which of the following statements is true of third-stage multinational companies?
They operate an entire line of business in another country
- When McDonald’s sells cheeseburgers in India, there is absolutely no beef or pork used. The McDonald’s Menu in India features Indian burgers that are 100 percent vegetarian. India is predominantly a Hindu country, and Hindus are strict in terms of not eating beef because they consider the cow as a holy manifestation of the divinity. This scenario is an example of _______.
product adaptation
- Which of the following statements is NOT correct about multinational companies?
Multinational companies have low income levels.
- While Brazil faces a recession due to political scandals, outdated labor laws, and lavish government pensions, what other of the following statements could be said about other BRICS countries?
Outside of China, the brightest light among the BRICS is India.
- Which of the following refers to the total market value of all final goods and services produced in a country during a given time period?
Gross domestic product
- Dreamgirls is a well-known San Diego women’s apparel store. The owners of the store want the store to go global; hence, they have created a website. In this scenario, doing business online _______.
immediately puts Dreamgirls in the international marketplace
- U.S. oil and gas producers have asked for tariffs to be placed on imported oil in an effort to boost the domestic oil industry, which is facing stiff competition from foreign oil producers. This is an example of _______.
protectionism
- Marketing that aims at markets across the world is called _______.
global marketing
- The owners of Vogue, an apparel store based in California, want to expand the store’s business all over the world. In this case, which of the following strategies can help the owners of Vogue achieve their objectives?
Opening an e-commerce site
- Nature’s Delights uses the same recipes, the same menu items, and the same packaging in its franchises all over the world. Nature’s Delights utilizes global marketing standardization, which means that _______.
the markets throughout the world are becoming more alike
Khokho’s Coffee House was the first company to introduce flavored coffee in the global market. It blends coffee in several different flavors, such as blueberry, cinnamon, and cranberry, based on the flavors each country prefers. In this scenario, Khokho’s Coffee House is involved in _____.
product invention
- Which term describes a form of price discrimination that can potentially harm the importing nation’s competing industries?
Dumping
- The Chinese company Huawei saw that a T-Mobile robot could detect cellphone problems. T-Mobile permitted Huawei engineers into the lab to test their phones. A Huawei engineer, according to the indictment, took the robot arm out of the lab. When questioned by T-Mobile, he returned it. Prosecutors say that the Chinese company wanted T-Mobile technology for its own phone-testing robot. This is an example of _______.
intellectual property theft
- Which of the following is true of outsourcing?
Firms can face production delays due to faulty parts.
- The Hard Rock restaurant and hotel chain operates locations around the world—Las Vegas, New Orleans, Chicago, Shanghai, Paris, and Berlin to name a few. Each location outside of the US is considered a subsidiary and allowed to compete independently in domestic markets. Hard Rock is utilizing a _______ strategy.
multidomestic
- Mercosur is a trade agreement made up of four member countries—Argentina, Brazil, Paraguay, and Uruguay—after Venezuela was notified it would be suspended from the trading bloc on December 1. Other countries are associate members. As a trade agreement, which of the following is a characteristic of Mercosur?
It occurs when several countries agree to work together to form a common trade area.
- Zenith, a popular restaurant chain, has many branches all over the world. The taste and quality of its food are the same across all these branch restaurants. Based on this information, which of the following strategies does Zenith embrace?
Global marketing standardization
- A multinational marketer in the soft drink industry such as Coca Cola, Pepsi, or Schweppes might agree to operate a tomato factory in one country, market the host country’s beer in its home country, and find a market for vodka in yet another country. This is an example of a _______.
countertrade
- In the United States, imports of raw sugar are limited to about three billion pounds. The price of sugar has shown a downward trend, which would typically result in an increase in imports. However, by restricting imports, the U.S. price for sugar remains above 20 cents per pound. This is an example of a(n) _______.
quota
- In countries that experience severe drought, which of the following is most likely to happen?
The country will rely on imported foodstuffs.
- Engineering Services provides consulting services to corporate clients such as Caterpillar and John Deere in the United States. Engineering Services would like to increase its revenues and capture additional clients. Which of the following statements might be true for Engineering Services?
Engineering Services may be able to utilize the internet to expand globally.
- All of the following describe the costs of globalization EXCEPT?
It creates access to global export markets and advanced technology.
- If the U.S. dollar depreciates relative to the South Korean won, Americans will need to pay more dollars to buy Korean goods. As a result, Americans buy fewer Korean goods. This leads to a decline in U.S. imports from Korea. This is an example of _______.
the effect of exchange rates
- Natural Groceries has a policy of not buying paper products, such as paper towels, from certain companies if they are made with rainforest wood. Natural Groceries is sending an economic message that it protests deforestation because of severe damage to the environment. This is an example of a _______.
boycott
- Which of the following is a similarity between joint ventures and licensing agreements?
Both involve joining with a foreign company to create a different entity.
- GE has been in the news lately for bringing back the production of GE appliances to its Louisville, Kentucky plant from China. This is an example of _______.
inshoring
- The stage in which multinationals set up foreign subsidiaries to handle sales in one country is the _______ in developing a global business.
second stage
- A company that is heavily engaged in global trade, beyond exporting and importing, is called _______.
a multinational corporation
- Dabasso is a coffee grower in Uganda. The price he charges for local customers is less than the price of coffee that is imported from other countries. Dabasso counts on the fact that the Ugandan government has placed a(n) _______ on imported coffee because it makes it easier for Dabasso to compete.
tariff
- Which of the following eliminated the extensive loopholes of the General Agreement on Tariffs and Trade (GATT)?
The World Trade Organization (WTO)
- Several countries in South America permit individuals and businesses in one country to buy and sell in neighboring countries without restrictions. These countries practice the policy of _______.
free trade
- Which of the following statements is true of a company that is in the second stage of developing a global business?
It sets up foreign subsidiaries to handle sales in one country.
- Which of the following is NOT correct regarding the practice of inshoring?
Expanding development and manufacturing timelines have contributed to inshoring.
- Sarah sends and receives goods to and from other nations. She works with clients and takes care of preparing necessary documents for importing or exporting products such as soybeans or wood. She does not assume any risk. Sarah is a(n) _______.
export broker
- President Trump levied tariffs of 10% on Chinese products, and, in return, China placed tariffs on $60 billion in U.S. goods. This is an example of (a) _______.
trade war
- The Uruguay Round replaced the General Agreement on Tariffs and Trade (GATT) with _____.
the World Trade Organization (WTO)
- Currency markets operate under a system of _______, which is a system in which the prices of different currencies move up or down based on the demand for and the supply of each currency.
floating exchange rates
- McDonald’s is a company that has franchises worldwide. McDonald’s understands international marketing opportunities, uses effective international marketing strategies, and knows the threats from foreign competitors in all markets. McDonald’s takes advantage of _______.
a global vision
