Q&A Hero

Q: Briefly describe regional integration efforts in Central America and the Caribbean.

Q: Outsourcing refers to the practice of buying from another company a good or a service that is part of a company's value-added activities.

Q: Explain the Single European Act and how it helped to integrate Europe. How did the Single European Act help prompt the creation of NAFTA?

Q: Today, due to improved technology, it is fairly easy to persuade an outside supplier to make significant modifications to a component.

Q: The main difficulty CARICOM will continue to face is that most members trade more with nonmembers than they do with each other.

Q: A company often undertakes in-house production when it can manufacture a product for less than it must pay another business to produce it.

Q: Today, the Southern Common Market acts as a political union.

Q: Companies make products rather than buy them in order to reduce total costs.

Q: The Southern Common Market is also referred to as MERCOSUR.

Q: The process by which a company extends its control over additional stages of production is called vertical integration.

Q: The North American Free Trade Agreement membership includes Canada, Mexico, and the United States.

Q: Availability and cost of labor in the local market is crucial to process planning.

Q: Canada and the United States are early examples of political unions.

Q: The Andean Community most closely resembles a(n) ________. A) economic union B) customs union C) common market D) political union

Q: The particular process to be used to create products is typically determined by a firm's business-level strategy.

Q: It is important for low-cost competitors to locate near their markets in order to keep track of buyer preferences.

Q: Bolivia, Colombia, Ecuador, and Peru belong to the ________. A) Latin American Free Trade Association (LAFTA) B) Central American Common Market C) Andean Community D) Latin American Integration Association (ALADI)

Q: The NAFTA is best considered a(n) ________. A) free trade area B) customs union C) economic union D) political union

Q: Companies selling differentiated products find centralized production most effective.

Q: Transportation costs are a driving force behind the globalization of the steel industry.

Q: The regional trade agreement between Canada, Mexico, and the United States to eliminate tariffs and non-tariff barriers between themselves is known as the ________. A) Central American Free Trade Agreement B) Andean Community C) Caribbean Community and Common Market D) North American Free Trade Agreement

Q: The only Western Hemisphere nation that has been excluded from participating in the Free Trade Area of the Americas (FTAA) is ________.A) ArgentinaB) MexicoC) BrazilD) Cuba

Q: Worker productivity tends to be lower in most developing nations than in developed nations.

Q: Availability of energy is an important aspect of the business environment necessary for facilities location planning.

Q: The Free Trade Area of the Americas (FTAA) is a trade agreement ________. A) between Mexico, Canada, and the U.S. B) among the South American nations C) that has been proposed to create the largest free trade area on the planet D) that includes the United States and the European Union

Q: Which of the following countries of the Central American Common Market has adopted the U.S. dollar as its official currency? A) El Salvador B) Honduras C) Nicaragua D) Costa Rica

Q: Capacity planning applies only to manufacturing companies.

Q: The common market between Costa Rica, El Salvador, Guatemala, Honduras, and Nicaragua is referred to as the ________. A) Latin American Integration Association B) Central American Common Market C) Andean Community D) Southern Common Market

Q: The process of assessing a company's ability to produce enough output to satisfy market demand is called process planning.

Q: The main challenge facing the Caribbean Community and Common Market (CARICOM) is that ________. A) the bloc has not yet signed an agreement calling for a single market B) military conflicts continue to hamper efforts to move toward political union C) most members trade more with nonmembers than they do with each other D) the bloc has had no success in persuading Chile to become a member

Q: Counterfeiting is common among highly visible brand-name consumer goods.

Q: Today, the Southern Common Market (MERCOSUR) acts as a(n) ________. A) economic union B) political union C) customs union D) preferential trading area

Q: All company and product brand names are made up of morphemes.

Q: The value customers obtain from a product is heavily influenced by the image of the country in which the product is manufactured.

Q: ALADI refers to the ________. A) Latin American Integration Association B) Association of Southeast Asian Nations C) Asia Pacific Economic Cooperation D) Latin American Free Trade Association

Q: In today's world, the Andean Community is best described as an incomplete ________. A) free-trade area B) customs union C) economic union D) political union

Q: A brand name can function as a legal property.

Q: The main objectives of the Andean Community include ________. A) introduction of tariffs for trade among member countries B) separate policies in both transportation and certain industries C) a common external tariff D) a common currency

Q: Product differentiation is more likely when nations share the same level of economic development.

Q: The ________ was established in 2006 between the United States and Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, and later the Dominican Republic. A) NAFTA B) LAFTA C) CAFTA-DR D) CAN

Q: Differentiate between worldwide and dual pricing. Which one of these is more difficult to achieve and why?

Q: Which of the following statements is true of NAFTA? A) It introduced a common currency for trade between the U.S., Mexico and Canada. B) It overrode the local content requirements and rules of origin for products manufactured in the member nations. C) It eliminated all tariffs and nontariff trade barriers on goods originating from within North America. D) It called for stringent rules regarding government procurement practices and the imposition of countervailing duties.

Q: How can a lack of market understanding, theft, and corruption affect distribution?

Q: Which of the following countries is a member of the North American Free Trade Agreement (NAFTA)? A) Costa Rica B) Honduras C) Venezuela D) Canada

Q: What is value density and what is its impact on an organization's distribution policy?

Q: While ________ encourages free trade among Canada, Mexico and the United States, manufacturers and distributors must abide by local content requirements and rules of origin. A) NAFTA B) LAFTA C) CAN D) CAFTA-DR

Q: Explain the primary concerns of managers when establishing distribution policies.

Q: Describe the structure of the European Union.

Q: Briefly discuss the effects of globalization on international marketing activities and explain how a dual adaption method works as a promotional strategy.

Q: The European Union (EU) and European Free Trade Association (EFTA) created the European Economic Area (EEA).

Q: Describe the five communication strategies that companies commonly use and cite situations where the strategies are used.

Q: The European Free Trade Association focuses on trade in consumer goods.

Q: Using examples, explain the circular process of marketing communication.

Q: Like the European Union commissioners, EU justices are required to act in the interest of their native countries.

Q: The Court of Justice is the court of appeals of the European Union.

Q: How does the dual extension method work as a promotional strategy?

Q: The Council of the European Union is the executive body of the EU.

Q: Explain the effect of counterfeit goods and black markets on international product strategies.

Q: Differentiate between the push and pull promotional strategies. Explain the factors that determine whether the push or the pull strategy is appropriate in a given marketing environment.

Q: Ombudsman and Data Protection Supervisor are the EU institutions that fulfill secondary and support roles.

Q: The Maastricht Treaty called for political union of the member nations.

Q: Discuss how a national business environment can influence a firm's decision to standardize or differentiate its product. How do cultural differences impact product strategies?

Q: Which of the following is best classified as an economic union? A) Southern Common Market (MERCOSUR) B) European Union (EU) C) North American Free Trade Agreement (NAFTA) D) Andean Community

Q: Describe any four factors that affect international product strategies.

Q: Explain the various methods that host countries use to restrict and promote foreign direct investment.

Q: Scenario: Scooters Inc.Scooters Inc. is a producer of pricey scooters. The company's profits come mostly from the sales of its luxury line that caters to the esteem needs of the rich population. Ben Driven, vice president of marketing for Scooters Inc., has been asked to review the company's pricing strategy.Scooters Inc. has traditionally sold its products at one price in the domestic market and at another price in export markets, which is called a(n) ________ pricing strategy.A) targetB) valueC) dualD) arm's length

Q: Identify why a home country might support or discourage outgoing foreign direct investment.

Q: Scenario: Scooters Inc.Scooters Inc. is a producer of pricey scooters. The company's profits come mostly from the sales of its luxury line that caters to the esteem needs of the rich population. Ben Driven, vice president of marketing for Scooters Inc., has been asked to review the company's pricing strategy.Because Scooters Inc. caters to a very narrow niche of wealthy individuals, the CEO is interested in implementing a worldwide pricing scheme. Which of the following is most likely a reason for the establishment of such a scheme?A) Their production costs differ from market to market.B) The currency values fluctuate fairly predictably.C) Their distribution channels are lengthy in each market.D) Their customers have similar levels of purchasing power.

Q: Discuss why a host country might promote or restrict foreign direct investment.

Q: Scenario: Scooters Inc.Scooters Inc. is a producer of pricey scooters. The company's profits come mostly from the sales of its luxury line that caters to the esteem needs of the rich population. Ben Driven, vice president of marketing for Scooters Inc., has been asked to review the company's pricing strategy.Ben knows that a pricing policy in which one selling price is established for all international markets is called ________.A) worldwide pricingB) value-based pricingC) dual pricingD) arm's length pricing

Q: Performance demands made by host countries to restrict incoming FDI apply exclusively to businesses in cultural industries.

Q: Scenario: Old World Ltd.Old World Ltd., a London-based furniture manufacturer, is establishing its global distribution, pricing, and promotion strategies. Being new to global business, the firm is seeking your help in making its decisions.If Old World adopts different selling prices in export markets than it has in the British market, it would be following a ________ pricing strategy.A) dualB) transferC) targetD) worldwide

Q: Ownership restrictions is a method used by host countries to restrict incoming foreign direct investment.

Q: Scenario: Old World Ltd.Old World Ltd., a London-based furniture manufacturer, is establishing its global distribution, pricing, and promotion strategies. Being new to global business, the firm is seeking your help in making its decisions.Old World should pursue a(n) ________ channel if it decides to greatly intensify its direct marketing efforts.A) intensiveB) one-levelC) zero-levelD) selective

Q: Which of the following methods will Happyland use to discourage foreign direct investment inflows? A) tax incentives B) low-interest loans C) performance demands D) tax breaks

Q: Scenario: Old World Ltd.Old World Ltd., a London-based furniture manufacturer, is establishing its global distribution, pricing, and promotion strategies. Being new to global business, the firm is seeking your help in making its decisions.If Old World wants to have its furniture sold through as many distribution outlets as possible, it should consider a(n) ________ channel.A) exclusiveB) intensiveC) one-levelD) zero-level

Q: Which of the following methods will Happyland use to encourage foreign direct investment inflows? A) tax incentives B) sanctions C) ownership restrictions D) performance demands

Q: Scenario: Old World Ltd.Old World Ltd., a London-based furniture manufacturer, is establishing its global distribution, pricing, and promotion strategies. Being new to global business, the firm is seeking your help in making its decisions.If Old World wants to grant the right to sell its furniture to only a limited number of resellers, it should consider a(n) ________ channel.A) intensiveB) exclusiveC) two-levelD) selective

Q: Which of the following is used by home country governments to limit outbound foreign direct investment?A) ownership restrictionsB) differential tax ratesC) tax breaksD) low-interest loans

Q: Scenario: Silk Industries LLCSilk Industries LLC comprises two major divisions: consumer products and industrial products. The consumer product line of the company is well-recognized and consists of loyal customers worldwide. The management is considering different types of promotional strategies for the two product divisions.If Silk Industries pressures channel members to carry a product and promote it to final users, it is using ________.A) pull strategyB) push strategyC) vertical integrationD) horizontal integration