Question 1

In a joint venture, the burden of ownership, control, and profits is not shared.

Accepted Answer

A) True 
 B)False

Question 2

Which of these is NOT one of the BRIC countries?

Accepted Answer

A)   Bulgaria
B)   Russia
C)   India
D)   China
E)   These are all BRIC countries.F) A) and D)
G) A) and C)

Question 3

A consumer products company produces inexpensive goods in underdeveloped markets, then repackages them as cost-effective innovations for Western buyers. This is an example of glocalization.

Accepted Answer

A) True 
 B)False

Question 4

A __________ limits the quantity of imported merchandise, thus minimizing competition faced by domestic products.

Accepted Answer

A)   tariff
B)   duty
C)   trading bloc
D)   trade agreement
E)   quotaF) D) and E)
G) A) and B)

Question 5

How and why have countries' dominance in globalization changed in the past fifty years?

Accepted Answer

In the 1950s and 1960s, U.S. firms domin...

Question 6

Of the five strategies for entering new markets, direct investment creates the

Accepted Answer

A)   least investment cost.
B)   greatest potential risk.
C)   most franchisee control.
D)   best opportunity for strong strategic alliances.
E)   greatest coordination of efforts of global and local partners.F) B) and C)
G) A) and E)

Question 7

Brazil is characterized by strong upper and lower classes, but the middle class has declined in recent years.

Accepted Answer

A) True 
 B)False

Question 8

When entering a foreign market, the least risky strategy is

Accepted Answer

A)   franchising.
B)   exporting.
C)   joint venture.
D)   direct investment.
E)   strategic alliance.F) D) and E)
G) B) and E)

Question 9

The greater the wealth of a country, generally, the better the opportunity a firm will have in that particular country.

Accepted Answer

A) True 
 B)False

Question 10

The Big Mac Index is a measure of economic health in a country.

Accepted Answer

A) True 
 B)False

Question 11

Exchange control refers to the regulation of a country's

Accepted Answer

A)   comparative inflation rate.
B)   countertrade exchange.
C)   quota rate of exchange.
D)   exchange tariffs.
E)   currency exchange rate.F) B) and C)
G) B) and E)

Question 12

NCD company wants to expand into the Mexican market. It has the financial resources, wants to control business operations, and has had considerable success marketing to Hispanics in the United States. NCD will likely use __________ to expand into the Mexican market.

Accepted Answer

A)   franchising
B)   exporting
C)   a joint venture
D)   direct investment
E)   a strategic allianceF) D) and E)
G) A) and B)

Question 13

The North American Free Trade Agreement represents the highest level of integration among the various international trade agreements.

Accepted Answer

A) True 
 B)False

Question 14

The most common measure of market potential of an economy is a country's

Accepted Answer

A)   GNI.
B)   GDP.
C)   PPP.
D)   CPI.
E)   APR.F) A) and B)
G) B) and E)

Question 15

Russia lags behind most European countries in use of the Internet.

Accepted Answer

A) True 
 B)False

Question 16

When a company decides to minimize risk and enter a global market by shipping its products to buyers in other countries, this is known as

Accepted Answer

A)   exporting.
B)   franchising.
C)   a strategic alliance.
D)   a joint venture.
E)   direct investment.F) None of the above
G) B) and E)

Question 17

Mary wants to sell her products in Europe, since they are doing well in the U.S. She does not have a lot of capital and is risk-averse, so she most likely would choose to begin with

Accepted Answer

A)   opening a franchise.
B)   exporting her products.
C)   a strategic alliance with another company.
D)   a joint venture with a local firm.
E)   direct investment in another country.F) None of the above
G) B) and E)

Question 18

How is the retail landscape in India changing?

Accepted Answer

Recent changes by the Indian government ...

Question 19

To determine the market potential for its particular product or service, a firm should use

Accepted Answer

A)   GDP data.
B)   unemployment data.
C)   purchasing power parity data.
D)   inflation data.
E)   as many metrics as it can obtain.F) None of the above
G) B) and E)

Question 20

Entering into a global franchise agreement exposes a company to higher risk than if the company had entered into direct investment in the country.

Accepted Answer

A) True 
 B)False

Exam 8: Global Marketing

In a joint venture, the burden of ownership, control, and profits is not shared.

Correct AnswerverifiedShow Answer

Entering into a global franchise agreement exposes a company to higher risk than if the company had entered into direct investment in the country.

Correct AnswerverifiedShow Answer

Brazil is characterized by strong upper and lower classes, but the middle class has declined in recent years.

Correct AnswerverifiedShow Answer

Exchange control refers to the regulation of a country's

Correct AnswerverifiedShow Answer

Of the five strategies for entering new markets, direct investment creates the

Correct AnswerverifiedShow Answer

To determine the market potential for its particular product or service, a firm should use

Correct AnswerverifiedShow Answer

The greater the wealth of a country, generally, the better the opportunity a firm will have in that particular country.

Correct AnswerverifiedShow Answer

How and why have countries' dominance in globalization changed in the past fifty years?

Correct AnswerverifiedIn the 1950s and 1960s, U.S. firms domin...View AnswerShow Answer

The Big Mac Index is a measure of economic health in a country.

Correct AnswerverifiedShow Answer

When a company decides to minimize risk and enter a global market by shipping its products to buyers in other countries, this is known as

Correct AnswerverifiedShow Answer

The most common measure of market potential of an economy is a country's

Correct AnswerverifiedShow Answer

NCD company wants to expand into the Mexican market. It has the financial resources, wants to control business operations, and has had considerable success marketing to Hispanics in the United States. NCD will likely use __________ to expand into the Mexican market.

Correct AnswerverifiedShow Answer

How is the retail landscape in India changing?

Correct AnswerverifiedRecent changes by the Indian government ...View AnswerShow Answer

A __________ limits the quantity of imported merchandise, thus minimizing competition faced by domestic products.

Correct AnswerverifiedShow Answer

The North American Free Trade Agreement represents the highest level of integration among the various international trade agreements.

Correct AnswerverifiedShow Answer

A consumer products company produces inexpensive goods in underdeveloped markets, then repackages them as cost-effective innovations for Western buyers. This is an example of glocalization.

Correct AnswerverifiedShow Answer

Russia lags behind most European countries in use of the Internet.

Correct AnswerverifiedShow Answer

Mary wants to sell her products in Europe, since they are doing well in the U.S. She does not have a lot of capital and is risk-averse, so she most likely would choose to begin with

Correct AnswerverifiedShow Answer

Which of these is NOT one of the BRIC countries?

Correct AnswerverifiedShow Answer

When entering a foreign market, the least risky strategy is

Correct AnswerverifiedShow Answer

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In the 1950s and 1960s, U.S. firms domin...
View Answer

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Recent changes by the Indian government ...
View Answer

Correct Answer
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Correct Answer
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