1. The largest corporation based in the United States is:
A) General Motors.
B) ExxonMobil.
C) General Electric.
D) Microsoft.
2. Service exports from the United States equal _____ per year.
A) less than $100 billion
B) approximately $250 billion
C) less than $350 billion
D) approximately $500 billion
3. In addition to agricultural products and manufactured goods, the United States is also the world's largest exporter of:
A) processed and packaged foods.
B) pharmaceuticals.
C) electronics.
D) business services and retailing.
4. Before entering a country, marketers need to determine if the country has the required _____ to support their marketing efforts.
A) moral code
B) legal system
C) infrastructure
D) trade bodies
5. In order for a marketer to operate efficiently in a foreign country, it is crucial that a stable _____ be in place to facilitate trade.
A) free trade agreement
B) tariff
C) infrastructure
D) labor force
6. Which of the following is not a trade barrier to an exporter?
A) Tariffs
B) Import quotas
C) Subsidies
D) Related party trade
7. A complete ban on the import of a product is known as a(n):
A) import quota.
B) embargo.
C) revenue tariff.
D) protective tariff.
8. Exchange control is an administrative barrier to international trade that:
A) requires companies that export to sell foreign currencies to the central bank or other foreign agency, and importers to buy foreign currencies from the same organization.
B) supports domestic industry through grants of money or research support.
C) completely bans the importation of a product.
D) sells products in a foreign market cheaper than they are sold domestically.
9. When a group of nations agree to the free trade of goods among themselves by abolishing tariffs and trade restrictions, the nations have created a:
A) common market.
B) customs union.
C) trading block.
D) free-trade area.
10. Which of the following is not an objective of the European Union(EU)?
A) eventually remove all trade barriers to free trade among its members.
B) standardize currencies and regulations between member nations.
C) promote the basic tenets of the WTO and GATT treaty.
D) eventually evolve into an independent political entity.
11. An organization that provides first-time exporters with expertise in locating foreign buyers, handling paperwork, and conforming to local labeling and testing laws is called a(n):
A) export facilitator.
B) export title company.
C) trade assistance corporation.
D) export management company.
12. McDonald’s and Starbucks have extensive operations in foreign markets. McDonald’s has generally used the _____ approach, while Starbucks has used the _____ approach.
A) direct investment; franchise
B) franchise; foreign licensing
C) franchise; direct investment
D) foreign licensing; franchise
13. The contractual agreement by which a domestic firm grants foreign marketers the right to distribute a firm's merchandise or use its trademark, patent, or process in a specified geographic area is called:
A) subcontracting through a foreign provider.
B) franchising as the franchiser participant.
C) reciprocal partnership.
D) foreign licensing.
14. _____ is a contractual arrangement in which a wholesaler or retailer agrees to meet the operating requirements of a manufacturer.
A) Foreign licensing
B) Franchising
C) Joint licensing
D) Offset licensing
15. Honda, a Japanese firm, builds a factory in Alabama to make minivans to be marketed to Americans. This strategy is best described as:
A) a joint venture between Honda and Alabama legislatures seeking to increase employment opportunities.
B) foreign marketing by Honda.
C) international direct investment by Honda in the United States.
D) indirect exporting.
16. Which of the following is not an example of international direct investment by a firm?
A) Foreign sales office
B) Overseas marketing subsidiaries
C) Acquisition of an existing foreign company
D) Export Management Company
17. ExxonMobil can best be described as a:
A) global exporter.
B) multinational corporation.
C) domestic corporation.
D) global importer.
18. Alternative strategies from which international marketers can choose in selecting an appropriate product/promotion strategy include:
A) product adaptation and dual adaptation.
B) promotion adaptation and direct exporting.
C) countertrading and product invention.
D) global marketing and multinational marketing.
19. Which of the following need not be considered in making an international distribution decision?
A) Precisely duplicating domestic distribution strategies.
B) Quality of the firm's products.
C) Available transportation options.
D) Warehousing facilities.
20. Pricing decisions in a foreign market can most likely be limited by which constraint?
A) Ecological
B) Political
C) Social
D) Ethical