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WorksheetsChapter 9: Global Marketing Vocabulary
Total questions: 105
Worksheet time: 53mins
Which best defines balance of trade in international economics?
Difference between export and import values
Ratio of domestic to foreign investment
Comparison of tariffs and quotas applied
Gap between GDP growth and inflation rates
APEC primarily functions as which type of organization?
Trade and technical cooperation alliance
Currency stabilization authority
Global marketing standards agency
Regional anti-dumping tribunal
ASEAN promotes which core activity among member nations?
Trade and economic integration
Military security coordination
Unified fiscal and tax policy
Shared central banking system
What is the main characteristic of contract manufacturing?
Hiring a foreign firm to produce to specification
Purchasing a foreign brand and re-labeling it
Leasing equipment to overseas distributors
Licensing patents without production
Cultural relativism suggests what about business practices?
Moral standards vary across cultures
Ethics are universal and fixed globally
Corporate norms follow international law
Marketing morals align with GDP rankings
Direct ownership in global expansion means a company does what?
Owns subsidiaries or facilities overseas
Sells through independent foreign agents
Uses third-party contract manufacturers
Licenses brand to foreign retailers
Dumping is best described as which behavior?
Selling products at unfairly low prices
Restricting imports through quotas
Raising prices to avoid tariffs
Monopolizing distribution channels
An embargo represents which government action?
Suspending trade in a product or country
Imposing a temporary anti-dumping duty
Setting minimum export prices worldwide
Mandating foreign exchange conversions
The European Union most closely serves which role for members?
Alliance promoting trade among European countries
Organization overseeing only defense policy
Agency issuing a single currency globally
Forum restricting intra-European competition
Exchange controls limit which activity?
Amount of a currency that can be traded
Volume of goods a firm can export
Number of foreign licenses issued
Value of tariffs collected annually
Exporting primarily involves which action?
Selling domestically made products in foreign markets
Purchasing foreign-made capital equipment
Investing directly in overseas factories
Contracting local distributors for domestic sales
Globalization in marketing means what for strategy?
Treating the world or regions as a single market
Focusing only on localized niche differences
Avoiding international competitive positioning
Relying exclusively on domestic segmentation
GDP is best defined as what measure?
Market value of total national output
Average household income across regions
Sum of government tax revenues yearly
Total value of international trade flows
An import tariff is levied on which transactions?
Goods purchased abroad and brought in
Services consumed by foreign tourists
Profits remitted from overseas subsidiaries
Currency exchanged by foreign investors
Importing refers to which activity for a firm?
Purchasing products from a foreign source
Licensing a brand to a domestic partner
Manufacturing goods in multiple countries
Selling services to international clients
International marketing most directly involves which process?
Developing and performing marketing across borders
Creating local-only campaigns for one city
Managing internal corporate communications
Setting prices solely by domestic costs
A joint venture is typically characterized by what structure?
Partnership between a domestic and foreign firm
Acquisition of a smaller local competitor
Franchise operated by independent retailers
Export-only sales agreement with agents
Licensing is an alternative to direct investment that requires what?
Paying commissions or royalties on sales or supplies
Hiring foreign staff under local labor contracts
Building a wholly owned plant in the host country
Creating a joint venture with government
A multinational enterprise can be identified by which feature?
Operations or subsidiaries in many countries
Exclusive sales to a single foreign market
Dependence on domestic suppliers only
Use of outsourcing for all functions
Offshore outsourcing is distinct because the organization does what?
Contracts work to be done in another country
Moves headquarters to a tax-friendly region
Exports finished goods via third-party logistics
Invests in a wholly owned foreign subsidiary
Offshoring specifically involves moving which element?
A business process from domestic to foreign location
Only customer service to external vendors
Product design to independent contractors
Ownership of brands to a holding company
Outsourcing in general is best defined as what practice?
Contracting non-core operations to specialists
Selling minority stakes to private investors
Licensing technology across all divisions
Centralizing all production under one roof
Which scenario most likely indicates dumping in a host market?
Foreign firm prices below fair market cost
Domestic firm sets prices at parity with rivals
Government raises tariffs to protect industry
Retailers adopt uniform pricing agreements
Which statement best defines global marketing strategy?
Coordinated marketing across multiple nations
Domestic promotion with occasional exports
Selling identical products in every country
Outsourcing production without market research
Which characteristic typically describes a born global company?
Operates internationally within two years
Expands abroad after decades of sales
Focuses solely on domestic buyers
Avoids advanced knowledge and resources
Why do many firms find international markets provide growth opportunities?
Access to new buyers and segments
Guaranteed profits from trade
Lower ethical standards abroad
Less competition in all countries
Which task is essential for successful international marketing strategy?
Careful environmental analysis of foreign needs
Copying domestic ads to save costs
Choosing the cheapest distribution channel
Favoring domestic preferences over local tastes
Sociocultural differences most directly require marketers to do what?
Identify major deviations among countries
Eliminate local customs and idioms
Standardize symbols without testing
Ignore negotiation styles and behaviors
Which challenge often arises when transferring brands internationally?
Marketing symbols may not translate well
Logistics costs always vanish abroad
Legal trademarks never differ by nation
Consumers always adopt products instantly
What factor can influence product acceptance when introduced across nations?
Similarities between cultures increase adoption
High tariffs always ensure popularity
Corporate size guarantees acceptance
Exchange rates determine consumer taste
Buyers’ perceptions of other countries can affect which outcome?
Product adoption and use levels
Government election results
Interest rates set by central banks
Corporate taxation schedules
Economic stability of a nation matters because it can do what?
Stifle or support marketing efforts
Eliminate cultural preferences
Guarantee fixed exchange rates
Remove all trade barriers permanently
Which list includes examples of country-specific economic factors impacting marketing?
Standards of living, credit, buying power
Seasonal weather, holidays, folklore
Board elections, union bylaws, patents
Company mission, brand story, slogans
Which statement about currency valuation is accurate?
Floating exchange rates allow values to fluctuate
Governments cannot change currency values
All nations peg currencies to the dollar
Exchange rates never affect marketing
What issue may arise when countries intentionally change currency values?
Trade problems and market distortions
Immediate elimination of tariffs
Unlimited foreign investment flows
Permanent GDP growth across sectors
Which description best defines gross domestic product (GDP)?
Market value of total output of goods and services
Average income per person adjusted for prices
Total exports minus imports over a year
Government spending on public services only
Which statement about GDP per capita is correct in relation to GDP?
GDP does not account for population size
GDP always equals GDP per capita
GDP is only measured quarterly
GDP excludes services produced domestically
Which grouping represents the BRICS nations highlighted for rapid expansion?
Brazil, Russia, India, China, South Africa
Belgium, Romania, Ireland, Chile, Singapore
Bahrain, Rwanda, Israel, Cyprus, Serbia
Bolivia, Russia, Iran, Cuba, Saudi Arabia
Which trade restriction is a government-imposed suspension of commerce with a particular product or country?
Tariff on imported goods
Quota on product categories
Embargo on specific trade
Exchange control limits
What is the primary purpose of exchange controls in international markets?
Stabilize domestic employment
Restrict currency transactions
Increase export subsidies
Set uniform import prices
A country limits the number of units of certain textiles that can be imported during a year. Which policy is this?
Embargo on textiles
Quota on imports
Tariff on garments
Exchange control rules
Which statement best describes a tariff?
Duty levied on imported goods
Ban on trade with a nation
Limit on quantity of imports
Restriction on currency flows
Which factor directly affects whether international entrepreneurs can easily start businesses in a country?
National tax incentives
Political climate conditions
Technological infrastructure
Consumer brand loyalty
Maintaining a favorable balance of trade primarily involves which goal?
Keeping exports below imports
Equalizing export and import values
Keeping exports above imports
Separating goods from services
The Foreign Corrupt Practices Act primarily prohibits which behavior by U.S. firms?
Giving customary small tips
Making facilitation payments
Making bribes to officials
Funding opposition parties
Cultural relativism implies which idea about business ethics?
Universal moral standards exist
Local practices define morality
Corporate codes override laws
Global customers set norms
Which ethical challenge often arises in international marketing regarding intellectual property?
Patent pooling agreements
Open-source licensing norms
Counterfeiting of branded goods
Fair trade certification audits
Which development has most changed competition by enabling customers to compare across many countries?
Rise of national champions
Growth of the global customer
Standardization of tariffs
Decline in exchange controls
In markets lacking advanced infrastructure, what opportunity do marketers often pursue?
Leapfrogging existing technology
Reducing product variety
Adopting legacy standards
Limiting customer choice
Political/legal forces influence marketing largely because they do what?
Shape consumer psychographics
Determine regulatory environments
Set multinational ownership caps
Define corporate mission statements
Which factor is most likely to make inexperienced marketers uneasy across borders?
Exchange rate volatility
Different business cultures
Aggressive price competition
High digital advertising costs
Which statement best captures the relationship between ethics programs and cultural differences in global business?
Ethics programs replace local laws
Companies collaborate to set standards
Cultural variance eliminates codes
Standards are uniform worldwide
Which agreement replaced NAFTA with updates on intellectual property, digital trade, and labor policies in 2020?
USMCA replaced NAFTA with updates
EU created a common market in 1958
MERCOSUR unified South American markets
APEC promoted private sector participation
What was a primary effect of NAFTA on trade among Canada, Mexico, and the United States?
Eliminated most tariffs among members
Created a shared military alliance
Adopted a single unified currency
Established strict import quotas
Which country is the United States’ single largest trading partner mentioned in the material?
Canada as largest trading partner
Mexico with maquiladora growth
China as emerging powerhouse
Japan in autos and electronics
What opportunity did Mexico’s economic growth provide for U.S. firms?
Low labor costs and proximity
High tariffs and quotas
Unified EU regulatory system
Access to Pacific Rim finance
Which Central American agreement involves the United States and several Latin nations, with exports of $32 billion annually?
CAFTA-DR regional trade pact
RCEP Asia-Pacific bloc
APEC cooperation forum
EU customs union
When was the European Union officially formed to promote trade among its members?
Formed in 1958 for trade
Launched in 1991 in South America
Established in 1989 in Asia-Pacific
Created in 2020 after Brexit
Which major event in 2020 changed EU membership?
United Kingdom exited the EU
Turkey joined the Euro Zone
Greece adopted strict quotas
France left the Euro currency
What is a key marketing implication of the EU functioning as one large market?
Consumers become more homogeneous
Tariffs rise on U.S. exports
Maquiladoras expand to Europe
Private sector excluded from trade
Which South American trade alliance includes Argentina, Brazil, Paraguay, and Uruguay as core members?
MERCOSUR free trade bloc
RCEP Asia-wide pact
APEC cooperation forum
USMCA North American deal
APEC is distinct because it allows which stakeholder group to participate widely in alliance activities?
Business and private sector
Only government ministries
Military-industrial complex
Nonprofit civil society
Which nation is noted as APEC’s most important emerging economic power and the United States’ second-largest trading partner?
China as emerging power
Japan with electronics
Taiwan with low barriers
Vietnam with stability
Japan’s trade relationship with the United States is described as having high volume but being less integrated, leading to what outcome?
Costs the United States billions
Eliminates most tariffs
Creates a shared currency
Increases EU collaboration
Which Pacific Rim locations are highlighted for manufacturing or finance growth attracting U.S. business?
South Korea and Singapore
Argentina and Uruguay
Canada and Mexico
Spain and Portugal
What happened to the proposed Trans-Pacific Partnership after the United States withdrew its support?
Eleven nations signed CPTPP
Agreement was fully canceled
USMCA replaced the deal
EU adopted the framework
Which agreement became the largest trading bloc by population and GDP, covering 2.27 billion people and $26 trillion GDP?
RCEP Asia-Pacific pact
USMCA North American deal
MERCOSUR South American bloc
APEC voluntary forum
Which countries are listed among RCEP members?
Australia, China, Indonesia
Canada, Mexico, United States
Argentina, Brazil, Paraguay
UK, France, Germany
RCEP builds upon which existing association promoting integration in Southeast Asia?
ASEAN foundational bloc
EU customs union
APEC cooperation forum
MERCOSUR external tariff
Which global organization oversees rules-based trade among member nations and dispute resolution?
World Trade Organization
Comprehensive CPTPP
Dominican Republic CAFTA
Maquiladora Council
What marketing impact can regional trade alliances have on firms operating internationally?
Create opportunities and constraints
Guarantee equal profits globally
Eliminate all cultural differences
Replace private sector entirely
Which method involves selling products to foreign markets with minimal resource commitment?
Licensing to a foreign firm
Exporting through intermediaries
Forming a joint venture
Direct ownership of subsidiaries
What is importing?
Selling products in foreign markets
Purchasing products from a foreign source
Contracting a foreign firm to produce goods
Granting rights to use a brand abroad
Which role do export agents primarily perform?
Finance plant construction overseas
Link buyers and sellers across countries
Own assets related to manufacturing
Set government trade policies
A trading company typically does what for firms?
Invests in manufacturing assets
Takes title and moves products internationally
Operates franchise outlets abroad
Provides direct ownership of subsidiaries
Licensing is best described as
Selling equity to a foreign partner
Allowing a licensee to pay royalties for use
Building wholly owned foreign facilities
Purchasing components from foreign suppliers
Franchising differs from general licensing by
Excluding brand name usage rights
Granting a right to market a full business format
Requiring zero financial commitment
Eliminating fee and royalty payments
Which arrangement reduces capital investment while enabling international expansion?
Direct ownership of a subsidiary
Franchise agreements with fixed fees
Trading company taking product title
Contract manufacturing by a foreign firm
Contract manufacturing occurs when a company
Licenses its logo to retailers
Hires a foreign firm to produce to specifications
Creates a joint venture with a local partner
Acquires a multinational enterprise
Outsourcing is defined as
Moving headquarters to a foreign country
Contracting non-core operations to an external entity
Selling majority ownership to a local firm
Integrating all production internally
Offshoring specifically means
Outsourcing within the home country
Transferring a business process to a foreign country
Purchasing a foreign distributor network
Forming a strategic alliance with rivals
Offshore outsourcing involves
Hiring a domestic subcontractor
Contracting an organization in another country
Selling direct to foreign governments
Retaining all operations in-house
A joint venture is
A franchise agreement with fixed fees
A partnership between a domestic and foreign firm
A wholly owned foreign subsidiary
An export agency taking commissions
Which statement about joint ventures is accurate?
Control is always with the domestic firm
Decision control may be equally split or partner-led
They eliminate all political risks
They require ownership of manufacturing assets
Strategic alliances are formed to
Compete in a single city
Create competitive advantage on a worldwide basis
Avoid collaboration between rivals
Replace joint ventures entirely
How do strategic alliances differ from joint ventures?
Partners are always government agencies
Partners may be traditional rivals competing
They prohibit shared market opportunities
They require full equity ownership stakes
Direct ownership is most appropriate when a company
Seeks minimal effort and cost
Makes a long-term commitment in a foreign nation
Wants to avoid asset control abroad
Plans to use export agents only
A multinational enterprise is a firm that
Exports from a single plant
Has operations or subsidiaries in many countries
Only licenses technology abroad
Relies solely on trading companies
Which benefit is typical of a wholly owned foreign subsidiary?
Greater freedom to adjust to local environment
Guaranteed government decision control
Zero need for local management autonomy
Reduced global market penetration
Which entry method best matches low commitment and low risk?
Direct ownership with full control
Exporting via an intermediary
Joint venture with equal control
Strategic alliance among rivals
Which approach eliminates the need for an exporting intermediary?
Selling directly to foreign buyers or governments
Licensing brand elements to franchisees
Outsourcing non-core internal operations
Forming a multinational enterprise
Which structure typically forms when a firm's international sales begin and are initially minimal?
Export department within marketing
Standalone global matrix unit
Geographic area headquarters
Product division worldwide office
What happens as demand for a firm’s goods grows internationally over time?
It develops an international structure
It dissolves its domestic divisions
It centralizes only sales locally
It shifts entirely to licensing
Which statement best describes firms suited to an international division structure?
Early or mature stage of global development
Only highly diversified conglomerates
Firms focused solely on exporting
Companies with no foreign sales
What is highlighted by the need for coordination between domestic and international operations in an international division?
Importance of strategic planning
Irrelevance of local responsiveness
Elimination of cross-cultural issues
Necessity of product standardization
When is an internationally integrated structure more appropriate than an international division?
As foreign sales increase significantly
When only one product is offered
When domestic demand declines
As export departments are eliminated
Which are common internationally integrated structures?
Product division, geographic area, matrix
Functional, holding company, network
Joint venture, franchise, license
Team-based, agile, holacracy
What characterizes the product division structure in multinational firms?
Self-contained divisions by product
Regions controlling all brands
Projects led by local teams
Functions centralized under country
In a product division structure, worldwide headquarters primarily manages what?
Overall strategic direction
Local retail staffing
Day-to-day factory scheduling
Country-specific tax filings
Which type of firm is best suited to a product division structure?
Diversified firms driven by domestic operations
Highly localized single-product firms
Companies with minimal R&D budgets
Businesses entering one foreign market
What is a key advantage of a geographic area structure?
Facilitates local responsiveness
Maximizes global cost reduction
Transfers core knowledge easily
Eliminates regional differentiation
A limitation of the geographic area structure is its weakness in which area?
Global cost reductions and knowledge transfer
Local market adaptation and speed
Developing country relationships
Managing export documentation
Why was the global matrix structure originally designed?
To achieve integration and local responsiveness
To centralize finance under headquarters
To minimize product diversification
To eliminate country managers entirely
An effectively implemented global matrix enables what benefit?
Global scope with local nimbleness
Complete elimination of bureaucracy
Uniform products in all markets
Centralized decisions without input
What risk arises from a poorly implemented global matrix?
Added bureaucracy and indecisiveness
Excessive local autonomy only
Total loss of strategic direction
Immediate collapse of divisions
