The Global Marketplace

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Question 1
Free
Multiple Choice

Which of the following does NOT characterize international trade in the past 30 years?

Choose correct answer/s
A

The number of multinational corporations has more than doubled.

B

Over 40 percent of the largest economies in the world are corporations.

C

Trade value of products and services grew even during the recession.

D

U.S. companies have long been successful at international marketing.

E

Home markets are just as rich in opportunity as foreign markets.

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Question 2
Free
Multiple Choice

According to the text, what location does Coca-Cola consider a promising long-term growth opportunity?

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A

Russia

B

Brazil

C

China

D

Africa

E

India

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Question 3
Free
Multiple Choice

Which of the following is most likely to be the consequence of increased growth of global trade?

Choose correct answer/s
A

Home markets become richer in opportunities.

B

Foreign firms expand aggressively into new international markets.

C

Global competition is curbed.

D

Industries become safe from foreign competition.

E

Domestic companies increase their chances to dominate their home markets.

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Question 4
Free
Multiple Choice

Firms that decide against international expansion to play it safe ________ .

Choose correct answer/s
A

protect themselves from competition at home

B

gain a competitive edge against imports in their home markets

C

successfully shield themselves from foreign competition

D

risk losing their home markets

E

increase their chances of entering other markets

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Question 5
Free
Multiple Choice

Companies risk losing their home markets ________ .

Choose correct answer/s
A

by protecting themselves from competition at home

B

to other domestic competitors

C

as they may find foreign competitors in their own backyards

D

by focusing only on their home markets

E

in hopes of growing market share at home

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Question 6
Multiple Choice

Which of the following is a risk associated with international trade?

Choose correct answer/s
A
technological obsolescence
B
highly unstable governments
C
market monopolization
D
lack of trade barriers
E
currency stagnation
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Question 7
Multiple Choice

Risks of global trade include all of the following EXCEPT ________ .

Choose correct answer/s
A
high trade barriers
B
corruption
C
restrictive government policies
D
unstable currencies
E
increased opportunities for growth
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Question 8
Multiple Choice

A ________ firm is one that, by operating in more than one country, gains marketing, production, research and development, and financial advantages that are not available to purely domestic competitors.

Choose correct answer/s
A
global
B
domestic
C
federally chartered
D
direct investment
E
free trade zone
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Question 9
Multiple Choice

Since the global company sees the world as one market, it raises capital, obtains components and materials, and manufactures and markets its goods ________ .

Choose correct answer/s
A
at home
B
in the lowest-cost country near where each product will be sold
C
in each country in which it does business
D
in the lowest-cost country on each continent
E
wherever it can do the best job
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Question 10
Multiple Choice

Which question should most likely be answered by all companies due to the rapid move toward globalization?

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A
How should we eliminate domestic competition?
B
Should we diversify in a new business area in the home country?
C
Who will our global competitors be, and what are their strategies and resources?
D
How should we fulfill our environmental obligations?
E
Which medium of advertising should we use in our home country?
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Question 11
Multiple Choice

Before a company decides to go global, it must evaluate all of the following environments EXCEPT the ________ environment.

Choose correct answer/s
A
cultural
B
natural
C
political-legal
D
global marketing
E
economic
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Question 12
Multiple Choice

Which of the following major decisions should a company make immediately after it decides to operate internationally?

Choose correct answer/s
A
deciding which markets to enter
B
deciding how to enter the market
C
deciding on the global marketing organization
D
deciding on the global marketing program
E
deciding on the global communication program
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Question 13
Multiple Choice

Immediately after deciding which markets to enter, the company should determine ________ .

Choose correct answer/s
A
the most suitable global communication program
B
how to price its products in different markets
C
the global marketing organization
D
the global marketing program
E
how to enter the market
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Question 14
Multiple Choice

Which of the following terms refers to a tax levied by a foreign government against certain imported products to raise revenue or to protect domestic firms?

Choose correct answer/s
A
embargo
B
tariff
C
excise
D
exchange control
E
quota
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Question 15
Multiple Choice

Which of the following is a nontariff trade barrier?

Choose correct answer/s
A
strike
B
quota
C
boycott
D
exchange premium
E
restrictive product standards
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Question 16
Multiple Choice

A(n) ________ is a limit on the amount of goods that an importing country will accept in certain product categories.

Choose correct answer/s
A
embargo
B
tariff
C
benchmark
D
quota
E
exchange control
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Question 17
Multiple Choice

A(n) ________ serves to limit the amount of foreign exchange and the exchange rate against other currencies.

Choose correct answer/s
A
exchange premium
B
free trade zone
C
quota
D
exchange control
E
tariff trade barrier
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Question 18
Multiple Choice

Which of the following was designed to help foster trade between nations?

Choose correct answer/s
A
tariffs
B
GATT
C
exchange controls
D
quotas
E
nontariff trade barriers
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Question 19
Multiple Choice

Bias against bids made by American companies is an example of a(n) ________ .

Choose correct answer/s
A
quota
B
tariff
C
boycott
D
nontariff trade barrier
E
exchange control
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Question 20
Multiple Choice

Foreign businesses in India appear to receive unusually close scrutiny and special regulations, aimed at protecting the local businesses. This is an example of a(n) ________ .

Choose correct answer/s
A
nontariff trade barrier
B
tariff
C
boycott
D
exchange control
E
quota
To unlock the question