question_key3_6Dec_3rd

61. The term dumping refers to the sale of
a) products sold in foreign markets that cannot be sold in the United States.
b) products sold in foreign markets at prices above those charged in the United States.
c) all discontinued U.S. products in foreign countries.
d) products sold in foreign countries at unfairly low prices.
e) products sold in foreign markets that cannot pass safety standards in the United States.
62. If Hyundai, a Korean automobile manufacturing firm, started selling its cars at unfairly low
prices to Germany, Hyundai would be engaging in
a) quota-enforcing.
b) embargoing.
c) shoveling.
d) dumping.
e) dipping.
63. The World Trade Organization accomplishes all of the following except
a) educating companies about international trade rules.
b) lending money to businesses interested in developing international markets.
c) serving as a forum for trade negotiations.
d) helping settle trade disputes.
e) providing legal ground rules for international commerce.
64. At the heart of the ____ are agreements that provide legal ground rules for international
commerce and trade policy.
a) United Nations
b) GATT
c) MERCOSUR
d) WTO
e) APEC
65. When a firm's products sell in foreign countries with little or no effort to obtain foreign
sales, the firm is engaging in
a) international marketing.
b) global marketing.
c) limited exporting.
d) product licensing.
e) unplanned exporting.
66. Miller's Home Furnishings uses marketing strategies aimed at markets within the United
States, its home country. Miller's engages in
a) domestic marketing.
b) localized marketing.
c) globalized marketing.
d) limited exporting.
e) international marketing.
67. Which of the following lists the levels of involvement in global marketing from the lowest to
the highest?
a) International marketing, limited exporting, domestic marketing, globalized marketing
b) Limited exporting, domestic marketing, globalized marketing, international marketing
c) Globalized marketing, international marketing, limited exporting, domestic marketing
d) Domestic marketing, globalized marketing, international marketing, limited exporting
e) Domestic marketing, limited exporting, international marketing, globalized marketing
68. The purchase of products from a foreign source is called
a) exporting.
b) dumping.
c) importing.
d) licensing.
e) venturing.
69. When the American company Exxon purchases crude oil from Saudi Arabia, it is engaging in
a) licensing.
b) importing.
c) free trade.
d) exporting.
e) dumping.
70. Henderson Synthetics' management believes that several of the firm's products could have
sizable markets in other countries. To maintain a low level of commitment with minimum effort and
cost, Henderson should engage in international marketing through
a) contract manufacturing.
b) exporting.
c) joint ventures.
d) licensing.
e) subsidiaries.
71. The extent of Raytheon's participation in global business is selling the batteries it
manufactures to companies in Spain. In this case, Raytheon is a(n)
a) trading company.
b) importer.
c) exporter.
d) franchiser.
e) contract manufacturer.

72. The Grummond Group buys computer peripherals in industrialized countries and sells them
to customers in developing countries. Grummond is most likely classified as a(n)
a) trading company.
b) strategic alliance.
c) joint venture.
d) licensee.
e) exporter.
73. The role of export agents is to
a) bring buyers and sellers from different countries together and collect a commission for
arranging sales.
b) purchase products from different companies and sell them to foreign countries.
c) help a firm to make direct investments in foreign countries.
d) contact domestic firms about the opportunities available in exporting.
e) arrange for licensing agreements between domestic and foreign firms.
74. How does using an exporting intermediary limit the risk involved with global marketing?
a) Most exporting intermediaries assume all financial risks on behalf of their clients.
b) Exporting intermediaries are not subject to the same laws as companies, and therefore limit
the legal risk involved.
c) Using an exporting intermediary restricts a company to being involved with joint ventures
and not direct ownership.
d) Exporting intermediaries guarantee that the products a company is selling will be a good fit
for the foreign markets they are entering.
e) This approach involves limited risk because the company has no direct investment in the
foreign country.
75. A company not involved in manufacturing that brings together buyers and sellers in different
countries is usually referred to as a
a) franchise.
b) contract manufacturer.
c) strategic intermediary.
d) trading company.
e) joint venture.
76. A large farming cooperative that focuses on the production of fruits and vegetables uses a
business that sells the farmers' products in foreign countries and also provides consulting, insurance,
legal assistance, and warehousing to the cooperative. This business would most likely be called a(n)
a) trading company.
b) export specialist.
c) contract wholesaler.
d) licensor.
e) strategic partner.
77. A ___________ is an organization that links buyers and sellers in different countries but is
not involved in manufacturing.
a) trading company
b) exporter
c) joint venture
d) strategic alliance
e) licensee
78. Questor Corporation owns the Spalding brand name but does not produce a single golf club
or tennis ball. This arrangement is an example of what type of involvement level for international
marketing?
a) Exporting
b) Trading
c) Joint venture
d) Strategic alliance
e) Licensing
79. If Caterpillar wished to reach the market in Malaysia but was leery of a direct investment in
the country, it might provide a Malaysian operation with the knowledge to produce and market its
products in exchange for a commission. This type of arrangement is called
a) licensing.
b) exporting.
c) a strategic alliance.
d) a joint venture.
e) contract manufacturing.
80. What level of commitment in international marketing may be most attractive when the
political and economic stability of a foreign country is questionable?
a) Joint ventures
b) Direct ownership
c) Exporting
d) Limited exporting
e) Licensing
81. A special form of licensing in which one company grants another company the right to
market its product in accordance with its standards in exchange for a financial commitment is called
a) a joint venture.
b) contract manufacturing.
c) direct licensing.
d) franchising.
e) a strategic alliance.
82. In many countries, Wendy's allows foreign businesspeople to use its name, logo, methods of
operation, advertising, and products. In exchange, Wendy's receives a financial commitment and an
agreement to conduct business in accordance with its standard of operations. Wendy's is engaging in
a) contract manufacturing.
b) licensing.
c) franchising.
d) exporting.
e) direct investment.
83. Franchising offers all the following benefits for franchisers except
a) franchise agreements require a certain standard of behavior from franchisees, which helps
protect the franchise name.
b) franchisers can retain control of their name while increasing global penetration of their
products.
c) the franchisee's revenue stream is fairly consistent because franchisers pay fixed fees and
royalties.
d) the franchiser's revenue stream is fairly consistent because franchisees pay fixed fees and
royalties.
e) franchisers do not have to put up a large capital investment.
84. Which of the following would be a benefit to a franchiser, such as Jiffy Lube, in expanding
into international marketing?
a) There are no risks involved with allowing a foreign franchisee.
b) The franchiser does not have to put up a large capital investment.
c) The franchiser does not have to share its name or operational procedures.
d) The franchisee only pays a set fee every month to the franchiser.
e) An equal partnership is formed between the franchiser and franchisee.
85. Which of the following describes a company hiring a foreign firm to produce a designated
volume of its product to specification?
a) Licensing
b) Contract manufacturing
c) Exporting
d) Importing
e) Direct investment
86. If The Limited Company relies on hiring a foreign textile manufacturer to produce a
designated amount of clothing for its Express, Limited, and other stores, it is using
a) exporting.
b) franchising.
c) contract manufacturing.
d) a joint venture.
e) licensing.
87. The contracting of noncore operations or jobs from internal production within a business to
an external entity that specializes in that operation is known as
a) outsourcing.
b) licensing.
c) franchising.
d) contract manufacturing.
e) contract sourcing.
88. A business partnership between a domestic firm and a foreign firm is known as
a) a joint venture.
b) an international partnership.
c) a multinational enterprise.
d) licensing.
e) exporting.
89. If a U.S. bicycle tire manufacturer has to form a partnership with the government of
Indonesia in order to gain access to the country's rubber, a _____ has been formed.
a) multinational enterprise
b) contract manufacturing arrangement
c) strategic alliance
d) franchise
e) joint venture
90. Timex, a U.S. based watchmaker -- recently entered into a partnership agreement with the
Australian government to make watches. What type of partnership agreement does this situation
most likely represent?
a) Trading company
b) Licensing arrangement
c) Strategic alliance
d) Joint venture
e) Direct ownership arrangement