Global Marketing Exam 1

Globally, which is the fastest-growing sector of world trade?

 

Trade in automobiles

 

Trade in computers

 

Trade in textiles

 

Trade in services

Trade in services

When is a trade deficit held by a country?

 

When its outflow of money to pay for imports is more than the inflow of money from exports

 

When its current account has a sustained positive balance

 

When portfolio investments in its capital account is greater than the value of short-term capital flows

 

When its balance of payments is balanced but there are imbalances in subsets of the overall balance

When its outflow of money to pay for imports is more than the inflow of money from exports

Which of the following is indicative of market capitalism as an economic system?

 

Individuals and firms allocate resources that are privately owned.

 

The state has broad powers to serve the public interest as it sees fit.

 

Market resource allocation is commanded by both private and state ownership.

 

There is no correlation between economic freedom and a nation's economy.

Individuals and firms allocate resources that are privately owned.

When a country moves into the upper-middle-income range, what typically happens that aids in that upward movement?

 

More people are engaged in agriculture.

 

More people move into the industrial sector.

 

The degree of urbanization decreases.

 

Wages are equal to those is high-income countries.

More people move into the industrial sector.

Which of the following makes India an especially attractive market for global companies?

 

Its lack of import tariffs and licensing requirements

 

Its improved educational system

 

Its strong upper-middle class

 

Its large population base

Its large population base

Today, market capitalism is widely practiced around the world, most notably in North America and the European Union.

 

True

 

False

True

What has prevented the World Trade Organization from granting China a "market economy" status?

 

Failure to support sanctions against Russia

 

State involvement in industry

 

Lack of trade agreements with other nations

 

Unnaturally high duties and tariffs

State involvement in industry

What do experts predict will create pressure on the government leaders of BRICS countries as their markets continue to evolve?

 

World recognition of human rights abuses

 

Greater income disparity among citizens

 

Need for environmental protections

 

Need for infrastructure upgrades that impact technology

Greater income disparity among citizens

When marketing to low-income countries, what should an organization focus its resources on?

 

Avoiding advanced technology that doesn't reach rural consumers

 

Not being viewed as exploiting low-income consumers by the world markets

 

Delivering products that are best suited to local needs and incomes

 

Providing the highest quality products possible

Delivering products that are best suited to local needs and incomes

What do experts predict will create pressure on the government leaders of BRICS countries as their markets continue to evolve?

 

World recognition of human rights abuses

 

Greater income disparity among citizens

 

Need for environmental protections

 

Need for infrastructure upgrades that impact technology

Greater income disparity among citizens

Which of the following can the political and social instability in the Middle Eastern region primarily be attributed to?

 

Desert conditions and lack of agricultural land

 

Cultural differences among nations

 

A wide gap between rich and poor nations due to oil revenues

 

Lack of Western trade partners

A wide gap between rich and poor nations due to oil revenues

Why are the markets of Central and Eastern Europe considered to be attractive locations for the light-industry sectors?

 

They are located close to seaports.

 

They have many cultural similarities.

 

They have lower wage rates than other EU countries.

 

They have fewer laws and regulations.

They have lower wage rates than other EU countries.

Which form of regional cooperation agreement, when fully implemented, entails the creation of a unified central bank, the use of a single currency, and common policies on agriculture, social services, and welfare?

 

Free trade area

 

Customs union

 

Common market

 

Economic union

Economic union

Which of the following best describes the current state of the Central American common market?

 

Uncoordinated, inefficient, and costly

 

In transition to a true customers union

 

Improved intragroup trade with lower tariffs

 

A greater focus on regional ideologies that yield more benefits

Uncoordinated, inefficient, and costly

The introduction of the euro by the EU resulted in multifaceted advantages, including which of the following?

 

Elimination of costs associated with currency conversion

 

Fixed exchange rate worldwide

 

Elimination of paper currency and coins

 

Withdrawal of French Francs from circulation

Elimination of costs associated with currency conversion

In a common market, there are no internal barriers to trade, and it allows free movement of factors of production such as labor and capital.

 

True

 

False

True

Which of the following ASEAN countries alone accounts for more than one-third of 2022 two-way trade exports with the United States?

 

Brunei

 

Malaysia

 

Singapore

 

Thailand

Singapore

Who did South Africa sign a Trade, Development, and Cooperation Agreement (TDCA) with to foster two-way trade and foreign direct investment?

 

Saudi Arabia

 

The EU

 

Namibia

 

Angola

The EU

According to EU regulations, why can't Kraft parmesan cheese be sold in Europe?

 

It is expensive when compared to local products.

 

It is considered a genetically modified agricultural product.

 

It violates protected geographical indications regulations.

 

It does not contain salt or an enzyme.

It violates protected geographical indications regulations.

Why did the original NAFTA agreement create a free trade area as opposed to a customs union or a common market?

 

There were no common external tariffs.

 

There was no way to decrease production costs.

 

The goal was to reduce competition from Asian markets.

 

It wanted to ease the exporting of commodities.

There were no common external tariffs.

In accordance with GATT, how long are new U.S. patents protected?

 

10 years

 

17 years

 

20 years

 

27 years

20 years

Which of the following is the judicial arm of the United Nations and oversees disputes that are issues of public international law?

 

The Permanent Court of International Justice

 

The International Law Commission

 

The International Court of Justice

 

The Private International Law Court

The International Court of Justice

What do many countries, including the United States, use to combat restrictive business practices and to encourage competition?

 

Universal licensing agreements

 

The Digital Services Act

 

Patent trolls

 

Antitrust laws

Antitrust laws

Which of the following is a formal legal document that gives an inventor the exclusive right to make, use, and sell an invention for a specified period of time?

 

Patent

 

Copyright

 

Trademark

 

Trade secret

Patent

When a U.S. company has their property in a foreign country expropriated, what actions can they take?

 

Work through the U.S. court system.

 

Sell all property and goods in that country and leave.

 

Raise prices and fees on all other products shipped to that country.

 

Seek recourse through the International Centre for Settlement of Investment Disputes.

Seek recourse through the International Centre for Settlement of Investment Disputes.

When countries decided to join the EU, what did they trade in exchange for improved market access?

 

The right to move products between countries without tariffs

 

The right to set their own product standards

 

The right to manage countries as sovereign nations

 

The right to control which companies imported products into their country

The right to set their own product standards

How does the degree of political risk in a country impact a company's ability to operate effectively and profitably there?

 

It makes it more difficult for companies to gain access to raw materials there.

 

It makes it more likely that a government will welcome foreign companies to stabilize the economy.

 

It can encourage companies to take advantage of tax benefits there.

 

It can deter companies from investing there.

It can deter companies from investing there.

When a government increases tariffs and local content requirements or places quotas for hiring local nationals, which type of activity is the government imposing on foreign companies?

 

Nationalism

 

Creeping expropriation

 

Confiscation

 

Asset seizure

Creeping expropriation

Why do some companies, especially those in the tech sector, shift profits to countries such as Ireland and Luxembourg?

 

To fund social services for their workforce

 

To prevent smuggling goods to those countries

 

To gain market share in those countries

 

To minimize tax liabilities in the home country

To minimize tax liabilities in the home country

Any company doing business outside the home country should carefully study which aspect of the government's attitude toward issues that will impact the business?

 

Political culture

 

Cultural activities

 

Intellectual activities

 

Social activities

Political culture

According to Geert Hofstede, what is represented by the deepest level of a culture and are present in the majority of members of a particular culture?

 

Attitudes

 

Values

 

Religious mores

 

Beliefs

Values

Why are late adopters an important part of marketing efforts?

 

They are highly critical and can help companies refine their products.

 

They tend to share their knowledge and opinion with others quickly.

 

They have higher income levels and are willing to pay more for useful innovation.

 

They are highly responsive to mass media information sources.

They are highly critical and can help companies refine their products.

Why should marketers consider visual aesthetics in their products on the global market?

 

Most cultures prefer products that are low on aesthetic styles.

 

What is attractive in one culture can be perceived differently in another.

 

Many cultures prefer goods be sold without packaging typical in the United States.

 

In all cultures, most people prefer blue, which should be incorporated in packaging.

What is attractive in one culture can be perceived differently in another.

What did the Chinese Value Survey identify as a social behavior dimension that was missing from Hofstede's original dimensions?

 

High power versus low power distance

 

High uncertainty versus low uncertainty avoidance

 

Achievement versus nurturing orientation

 

Long-term versus short-term orientation

Long-term versus short-term orientation

Which of the following is true of low-context cultures?

 

The context of the communication provides its basic value.

 

Nonverbal communication is more important than the words spoken.

 

Words are implicit and vague.

 

Words carry most of the communication power.

Words carry most of the communication power.

What is required of marketers to avoid the self-reference criteria that can affect decision making on a global scale?

 

Use long-standing knowledge about human behavior.

 

Suspend assumptions based on prior experience.

 

Understand that most people are motivated by the same things.

 

Find what works best and apply it to similar cultural situations.

Suspend assumptions based on prior experience.

 

According to researchers, what is probably the most sensitive category of consumer products?

 

Electronics

 

Fashion

 

Transportation

 

Food

Food

Why must a marketer working in a global environment study and understand the cultures of the countries in which they will be doing business?

 

So they can identify new niche markets within the culture

 

So they can avoid costly product adaptations

 

So strategies and programs can be adapted to the local culture

 

So online sales can become the primary source of business interaction

So strategies and programs can be adapted to the local culture

Considering Hofstede's notion of culture as "the collective programming of the mind," how can attitudes be defined?

 

A learned tendency to respond in a consistent way to a given object or entity

 

An organized pattern of knowledge that an individual holds to be true about the world

 

An enduring belief or feeling of a specific mode of conduct

 

A personally or socially preferable mode of conduct

A learned tendency to respond in a consistent way to a given object or entity

Which of the following is at the core of the communication process in a high-context culture?

 

Specific and explicit messages

 

The words spoken

 

Nonverbal communication

 

The legal relationship

Nonverbal communication

Market Penetration

Market Development

Product Development

Diversification

What countries are the original BRICS countries?

What four countries has since been added to BRICS?

For US companies, what percentage of total world market for goods and services is outside the country?

70%

80%

65%

75%

75%

Regiocentric

Ethnocentric

Geocentric

Polycentric

Market Capitalism

Centrally Planned Socialism

Gross National Income (GNI)

Which countries are members of G-7?

USA, Brazil, Greece, France, Britain, Canada, Italy

USA, Japan, Greece, France, Britain, Canada, Italy

USA, Japan, Germany, France, Britain, Canada, Italy

USA, Japan, Germany, France, Brazil, Canada, Italy

USA, Japan, Germany, France, Britain, Canada, Italy

What country is included in G-8?

Canada

Italy

France

Russia

Russia

What does it mean that the USA has a - current account balance or trade deficit?

Value of import is larger than value of export

What is the name of the trade org with the most member countries?

WTO- World Trade Org

Name one Preferential Trade Agreement for North America:

USMCA

Name one Preferential Trade Agreement for Europe:

EU

Sort the following trade agreements from the least to the most comprehensive:

Customs Union

Common Market

Free Trade Area

Economic Union

Free Trade Area

Customs Union

Common Market

Economic Union

Political Risk

What is the difference between Expropriation and Confiscation of a (foreign) investor’s assets?

Confiscation provides no compensation, Expropriation does.

In a (blank) law country, many disputes are decided by reliance on the authority of past judicial decisions (Cases)

common law

Is it sufficient to register intellectual property in the home country of a global corporation?

No, needs to be registered in each country where business is conducted.

What government office do you register intellectual property with here in the US?

Federal Patent and Trademark Office

Patent Cooperation Treaty edit

The more than 100 members constitute a union that provides certain technical services and cooperates
in the filing, searching, and examination of patent applications in all member countries.

Sherman Act edit

prohibits certain restrictive business practices including fixing prices, limiting
production, allocating markets, or any other scheme designed to limit or avoid competition

Is it legal for a US corporation to pay an official of a foreign government or political party to obtain or
retain business?

No

Is it legal for a US corporation to pay “grease” payments to low-level officials to cut red tape and
expedite “routine governmental actions” such as clearing shipments through customs, securing permits,
or getting airport passport clearance to leave a country?

yes

What are the 5 dimensions in the Hofstede Cultural Typology? Edit

• Individualistic/Collectivistic
• High/Low Power Distance
• High/Low Uncertainty Avoidance
• Achievement/Nurturing (masculine/feminine)
• Long-term/Short-term Orientation

What is the Self-Reference Criterion and Perception? Edit

Unconscious reference to one’s own cultural values

What are the two largest adopter categories (making up 68% of the total market)

Early majority
Late majority