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Chapter 7: Marketing in a Global Environment

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Chapter 7: Marketing in a Global Environment

20 problems · 0 figures

Knowledge Check 7.1.1 §7.1 source ↗

When conditions are favorable for a company to expand globally, the company is experiencing ________.
  1. a.
    global market opportunities
  2. b.
    international trade
  3. c.
    growth
  4. d.
    increased sales

Answer

A. global market opportunities
Global market opportunities refer to the favorable conditions that allow companies to choose to expand globally.

Knowledge Check 7.1.2 §7.1 source ↗

Which of the following is NOT an advantage of international trade?
  1. a.
    Increased sales
  2. b.
    Growth
  3. c.
    Cultural barriers
  4. d.
    Diversification of risk

Answer

C. Cultural barriers
Cultural barriers are a hindrance to international trade.

Knowledge Check 7.1.3 §7.1 source ↗

Being aware of and appreciating variations in culture is known as ________.
  1. a.
    cultural sensitivity
  2. b.
    cultural barriers
  3. c.
    cultural differences
  4. d.
    marketing regulations

Answer

A. cultural sensitivity
Cultural sensitivity involves a person’s ability to be aware of and appreciate cultural differences.

Knowledge Check 7.1.4 §7.1 source ↗

Ashia is planning a business dinner with her new clients in Chile. She has never visited Chile before and is not familiar with their customs. Which of the following would you NOT advise Ashia to do?
  1. a.
    Tell Ashia she should consider talking with a colleague who has traveled to Chile before.
  2. b.
    Tell Ashia to study some of the most important Chilean customs so as not to embarrass herself or offend her dinner guest.
  3. c.
    Tell Ashia that if she is in doubt, she should follow her dinner guests’ lead on what is appropriate.
  4. d.
    Tell Ashia not to worry about it because the Chilean businesspeople should adapt to her customs because her customs are the best ones to follow.

Answer

D. Tell Ashia not to worry about it because the Chilean businesspeople should adapt to her customs because her customs are the best ones to follow.
This advice to Ashia could not only be offensive to her dinner guest but would also cause poor business relationships.

Knowledge Check 7.1.5 §7.1 source ↗

Which of the following is true regarding business politics?
  1. a.
    They do not vary from culture to culture.
  2. b.
    Business politics can vary greatly across cultures, and businesspeople should decide what is within their own ethical compass before deciding to conduct international business.
  3. c.
    Business ethics are the same across every culture.
  4. d.
    When conducting business in a foreign market, you should always do what is asked of you, even if it’s unethical or illegal in your home country.

Answer

B. Business politics can vary greatly across cultures, and businesspeople should decide what is within their own ethical compass before deciding to conduct international business.
Business politics vary greatly across cultures. Businesspeople must decide how far they are willing to adapt to the local expectations.

Knowledge Check 7.2.1 §7.2 source ↗

During the Russian invasion of Ukraine in 2022, the Russian ruble’s value decreased to less than one United States penny. This conversion from ruble to dollar is known as the ________.
  1. a.
    exchange rate
  2. b.
    business landscape
  3. c.
    purchasing power
  4. d.
    consumer income

Answer

A. exchange rate
An exchange rate is the rate at which one country’s currency can be exchanged for that of another country

Knowledge Check 7.2.2 §7.2 source ↗

Generally speaking, when a country’s political stability improves, so does its ________.
  1. a.
    international business
  2. b.
    purchasing power
  3. c.
    economy
  4. d.
    consumer income

Answer

C. economy
As stability increases in a country, the economy often improves.

Knowledge Check 7.2.3 §7.2 source ↗

The assumption that all Chinese individuals are extremely gifted in mathematics is known as a ________.
  1. a.
    stereotype
  2. b.
    lifestyle
  3. c.
    culture
  4. d.
    sociocultural factor

Answer

A. stereotype
Stereotypes are assumptions or generalizations made about an entire group of people.

Knowledge Check 7.2.4 §7.2 source ↗

During the Russian invasion of Ukraine in 2022, United States President Joe Biden halted all imports of Russian oil. This action is known as a(n) ________.
  1. a.
    tariff
  2. b.
    quota
  3. c.
    trade bloc
  4. d.
    embargo

Answer

D. embargo
An embargo is a complete halt of trading with a specific country or of a specific good.

Knowledge Check 7.2.5 §7.2 source ↗

The United States, Canada, and Mexico are part of a trade bloc known as ________.
  1. a.
    ASEAN
  2. b.
    USMCA
  3. c.
    tariffs
  4. d.
    embargoes

Answer

B. USMCA
The USMCA is a trade bloc agreement between the United States, Mexico, and Canada.

Knowledge Check 7.3.1 §7.3 source ↗

Janai is considering opening a McDonald’s in her home country of Nicaragua. Which type of market entry strategy would she use?
  1. a.
    Franchise
  2. b.
    Joint venture
  3. c.
    Strategic alliance
  4. d.
    Exporting

Answer

A. Franchise
McDonald’s is a franchise.

Knowledge Check 7.3.2 §7.3 source ↗

Imagine you are interested in entering the global marketplace. Which would be the easiest way for you to begin?
  1. a.
    Franchising
  2. b.
    Strategic alliance
  3. c.
    Exporting
  4. d.
    Joint venture

Answer

C. Exporting
Exporting is the easiest way in which to begin an international business.

Knowledge Check 7.3.3 §7.3 source ↗

Ryana owns a T-shirt company in Japan. With her T-shirts, she applies Disney characters and pays Disney royalties based on each shirt sold and an agreement the two companies entered into. Which of the following is Ryana most likely involved in?
  1. a.
    Licensing
  2. b.
    Unethical behavior
  3. c.
    Trademark fraud
  4. d.
    Franchising

Answer

A. Licensing
Licensing is an agreement whereby one company can legally use the copyrighted material of another for a royalty fee.

Knowledge Check 7.3.4 §7.3 source ↗

A company wants to expand into a particular global market, but local firms are better equipped to handle some business processes, such as logistics. Additionally, it is particularly difficult to enter this market. Which of the following would you recommend to the expanding company?
  1. a.
    Franchising
  2. b.
    Exporting
  3. c.
    Licensing
  4. d.
    Joint venture

Answer

D. Joint venture
A joint venture is a business arrangement whereby two or more companies create a single enterprise or project.

Knowledge Check 7.3.5 §7.3 source ↗

After being hired at ABC Corporation, you realize that all decisions for each facility in the world are made at the headquarters you work at in Pensacola, Florida. Which type of firm best describes the one you are working at?
  1. a.
    Exporting firm
  2. b.
    International firm
  3. c.
    Transnational firm
  4. d.
    Importing firm

Answer

B. International firm
An international firm has centralized decision-making, meaning decisions are made in the home country headquarters.

Knowledge Check 7.4.1 §7.4 source ↗

A company that uses the same marketing strategy in all markets is most likely utilizing which of the following?
  1. a.
    Standardized
  2. b.
    Adapted
  3. c.
    Invention
  4. d.
    Modified

Answer

A. Standardized
A standardized strategy employs the same strategy for every market.

Knowledge Check 7.4.2 §7.4 source ↗

Which of the following is correct regarding the promotion strategy of global markets?
  1. a.
    All promotion strategies should remain the same across markets.
  2. b.
    Promotion strategies of global markets should deviate only slightly from the home market.
  3. c.
    Promotion strategies should reflect the market, some to different degrees.
  4. d.
    Promotion strategies of global markets should always be completely different from the home market.

Answer

C. Promotion strategies should reflect the market, some to different degrees.
The degree to which a promotion strategy should change depends on the market.

Knowledge Check 7.4.3 §7.4 source ↗

Which of the following Coca-Cola slogans is used in New Zealand?
  1. a.
    “Real Magic”
  2. b.
    “Always the Real Thing”
  3. c.
    “Feel the Flavor”
  4. d.
    “Feel the Magic”

Answer

A. “Real Magic”
“Real Magic” is Coca-Cola’s slogan in New Zealand.

Knowledge Check 7.4.4 §7.4 source ↗

Which of the following is part of the whole channel?
  1. a.
    Promotions
  2. b.
    Communications
  3. c.
    Price
  4. d.
    Distribution channel members

Answer

D. Distribution channel members
The whole channel refers to all distribution channel members, including manufacturers, retailers, transportation, and wholesalers.

Knowledge Check 7.4.5 §7.4 source ↗

Which country has the highest automobile prices?
  1. a.
    China
  2. b.
    Singapore
  3. c.
    United States
  4. d.
    Canada

Answer

B. Singapore
Singapore has the highest automobile prices due the country’s small size and limited infrastructure.

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Problems and answers are adapted from Principles of Marketing by Maria Gomez Albrecht, Mark Green and Linda Hoffman, OpenStax, and are used under the CC BY-NC-SA 4.0 licence. Access for free at https://openstax.org/books/principles-marketing/pages/1-unit-introduction. Illustrations: Copyright Rice University, OpenStax, under CC BY-NC-SA 4.0 license. This adaptation is released under the same licence, is non-commercial, and is neither affiliated with nor endorsed by OpenStax or Rice University.