A tariff is defined as:

A tariff is defined as:

a. a limit on the amount of a specific product that can enter a country.
b. a tax levied on the goods entering a country.
c. an agreement to stimulate international trade.
d. an agreement to stimulate international trade.


Answer: b. a tax levied on the goods entering a country.

Governments may exclude all products from certain countries or companies with which they have a political dispute. This is known as a(n) ________ .

Governments may exclude all products from certain countries or companies with which they have a political dispute. This is known as a(n) ________ .

a. exchange control
b. tariff
c. boycott
d. quota


Answer: c. boycott

Which of the following best defines exporting?

Which of the following best defines exporting?

a. It is the selling of domestically produced products to buyers in other countries.
b. It is the use of a firm's business model by an operator along with the use of the supplier's trademark.
c. It is the private label manufacturing by a foreign company.
d. It is the legal process whereby the manufacturing process, trademarks, etc. can be used by another for a fee.


Answer: a. It is the selling of domestically produced products to buyers in other countries.

In the ________ stage of becoming a global business, companies operate in one country and sell in others.

In the ________ stage of becoming a global business, companies operate in one country and sell in others.

a. third
b. second
c. fourth
d. first


Answer: d. first

Developing a single product and promoting it the same way all over the world is known as ________.

Developing a single product and promoting it the same way all over the world is known as ________.

a. product adaptation
b. promotion adaptation
c. product invention
d. global marketing standardization


Answer: d. global marketing standardization

The sale of an exported product at a price lower than that charged for the same or a like product in the "home" market of the exporter is called ________ .

The sale of an exported product at a price lower than that charged for the same or a like product in the "home" market of the exporter is called ________ .

a. premium pricing
b. countertrading
c. bartering
d. dumping


Answer: d. dumping

The ________ is a trade agreement adopted in 1994 that has dramatically lowered trade barriers worldwide.

The ________ is a trade agreement adopted in 1994 that has dramatically lowered trade barriers worldwide.

a. General Agreement on Tariffs and Trade
b. North American Free Trade Agreement
c. Mercosur
d. Uruguay Round


Answer: d. Uruguay Round

Active ownership of a foreign company or of overseas manufacturing or marketing facilities is called ________ .

Active ownership of a foreign company or of overseas manufacturing or marketing facilities is called ________ .

a. a joint venture
b. direct foreign investment
c. contract manufacturing
d. licensing


Answer: b. direct foreign investment

A(n) ________ is a law compelling a company earning foreign currency from its exports to sell it to a central bank.

A(n) ________ is a law compelling a company earning foreign currency from its exports to sell it to a central bank.

a. excise duty
b. exchange control
c. tariff
d. quota


Answer: b. exchange control

The ________ is a trade agreement instituted in 2005 that includes Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, Nicaragua, and the United States.

The ________ is a trade agreement instituted in 2005 that includes Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, Nicaragua, and the United States.

a. North American Free Trade Agreement
b. Mercosur
c. Central American Free Trade Agreement
d. General Agreement on Tariffs and Trade


Answer: c. Central American Free Trade Agreement

_____ is when multinational firms enable individual subsidiaries to compete independently in domestic markets.

_____ is when multinational firms enable individual subsidiaries to compete independently in domestic markets.

a. Mass customization
b. Multidomestic strategy
c. Global marketing standardization
d. Mass customization


Answer: b. Multidomestic strategy

Slightly altering a basic product to meet the local conditions in a foreign market is called ________ .

Slightly altering a basic product to meet the local conditions in a foreign market is called ________ .

a. product adaptation
b. product diversification
c. product invention
d. promotion adaptation


Answer: a. product adaptation

Global marketing standardization is the:

Global marketing standardization is the:

a. production of uniform products that can be sold the same way all over the world.
b. strategy which allows marketing-oriented multinationals to operate differently in each country.
c. strategy of providing different product features or advertising in different countries.
d. use of independently competing subsidiaries and strategic business units in other countries.


Answer: a. production of uniform products that can be sold the same way all over the world.

Langdon Farms sends milk to Yinkers, a Canadian cheese maker. In payment, Yinkers sends Langdon Farms cheddar and Swiss cheese, which Langdon Farms in turn markets in the United States. Langdon Farms and Yinkers are engaging in ________ .

Langdon Farms sends milk to Yinkers, a Canadian cheese maker. In payment, Yinkers sends Langdon Farms cheddar and Swiss cheese, which Langdon Farms in turn markets in the United States. Langdon Farms and Yinkers are engaging in ________ .

a. dumping
b. bribery
c. price fixing
d. countertrading


Answer: d. countertrading

In the context of global marketing, ________ means creating a new product.

In the context of global marketing, ________ means creating a new product.

a. product invention
b. promotion adaptation
c. product adaptation
d. global marketing standardization


Answer: a. product invention

The legal process whereby the manufacturing process, trademarks, patents, trade secrets, or other proprietary knowledge can be used by another for a fee is known as ________ .

The legal process whereby the manufacturing process, trademarks, patents, trade secrets, or other proprietary knowledge can be used by another for a fee is known as ________ .

a. importing
b. exporting
c. contract manufacturing
d. licensing


Answer: d. licensing

The ________ is a country's gross domestic product (GDP) together with its income received from other countries less similar payments made to other countries.

The ________ is a country's gross domestic product (GDP) together with its income received from other countries less similar payments made to other countries.

a. gross national income
b. gross national product
c. gross state product
d. gross state product


Answer: a. gross national income

In the context of global marketing, ________ means creating a new product.

In the context of global marketing, ________ means creating a new product.

a. product invention
b. global marketing standardization
c. promotion adaptation
d. product adaptation


Answer: a. product invention

A(n) ________ is a publicly accessible Web page that functions as an interactive journal, where readers can post comments on the author's entries.

A(n) ________ is a publicly accessible Web page that functions as an interactive journal, where readers can post comments on the author's entries.

a. gateway
b. widget
c. widget
d. blog

Answer: d. blog

Which of the following is true of an international joint venture?

Which of the following is true of an international joint venture?

a. It involves active ownership of a foreign company or of overseas manufacturing or marketing facilities.
b. A domestic firm buys part of a foreign company or joins with a foreign company to create a new entity.
c. It is a laborious, slow, and an expensive way to go global and gain expertise.
d. Joint ventures tend to be relatively low risk and immune to failure.


Answer: b. A domestic firm buys part of a foreign company or joins with a foreign company to create a new entity.