BCOR 350 CH 19 TEST QUESTIONS AND ANSWERS ALL CORRECT

BCOR 350 CH 19 TEST QUESTIONS AND ANSWERS ALL CORRECT Which organization was designed to reassess trade barriers, establish new rules for international trade, impose international trade sanctions, and mediate global trade disputes? - Answer-The World Trade Organization (WTO) What are the two economic factors that reflect a country's attractiveness as a market? - Answer-Industrial structure and income distribution Free trade zones can be described as __________. - Answer-groups of nations organized to work toward common goals in the regulation of international trade Which type of industrial structure offers the fewest marketing opportunities? - Answer-Subsistence economies To assess the impact of __________ on global markets, marketers would look to a country's norms, folkways, and taboos. - Answer-culture Nations that have too little hard currency to pay for their purchases from other countries will often use which method of international trade? - Answer-Barter A country's attractiveness depends on the product, geographical factors, income and population, political climate, and other considerations. These factors relate to the importance of which of the following decisions? - Answer-The types of countries to enter What is the simplest way to enter a foreign market? - Answer-Through exporting Which joint venturing method typically involves fees and royalty payments? - Answer-Licensing Which market entry strategy has the greatest amount of commitment, risk, control, and profit potential? - Answer-Direct investment One market entry strategy is __________, in which the company makes agreements with companies in the foreign market to produce its product or provide its service. - Answer-contract manufacturing What is the main disadvantage of direct investment? - Answer-The risks the firm faces One factor that makes management contracting an attractive entry strategy is that __________. - Answer-it yields immediate income Apple iPads, Gillette razors, and Black & Decker tools are all sold successfully in about the same form around the world. This is an example of which global strategy? - Answer-A straight product extension Dunkin Donuts has added menu items that meet the unique taste buds of customers in local markets, for example, mango pudding donuts in China. This represents which global product strategy? - Answer-Product adaptation When using the global product strategy of __________, companies create something new to meet the needs of consumers in a given country. - Answer-product invention In balancing standardization and adaptation, one common suggestion from international marketers is to __________. - Answer-think globally but act locally Which of the following statements is true regarding pricing in global markets? - Answer-For most companies, their foreign prices probably will be higher than their domestic prices for comparable products.