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Unformatted text preview: CHAPTER 7 REACHING GLOBAL MARKETS MULTIPLE CHOICE QUESTIONS 7-1 CHAPTER OPENING EXAMPLE: BREATHE RIGHT DEFINITION Breathe Right nasal strips are targeted at: a. mainly athletes although people with allergies and people that snore or sleep with people that snore have started buying them. b. mainly people who snore although people who sleep with snorers have been purchasing them. c. mainly people with allergies who do not wish to be medicated. d. generation Xers who use them as a fashion statement. e. athletes, people with allergies, people who snore, and those who sleep with those who snore. Answer: e Page: 171 Rationale: The chapter opening example describes athletes, those with allergies, those who snore, and those who sleep with those who snore as the target for Breathe Right strips. 7-2 DYNAMICS OF WORLD TRADE CONCEPTUAL Which of the following statements about the dynamics of world trade is true? a. The dollar value of world trade has more than doubled in the past decade. b. Manufactured goods account for 75 percent of world trade. c. One-fourth of world trade includes services such as telecommunications, transportation, insurance, education, etc. d. World trade will likely exceed $11.5 trillion in 2005. e. All of the above statements about the dynamics of world trade are true. Answer: e Page: 172 Other Locations: SG Rationale: Each of the statements in a, b, c, and d describe aspects of current and future world trade. 7-3 COUNTERTRADE DEFINITION The use of barter rather than money in making international sales is called: a. predatory pricing. b. a countertrade. c. cross-cultural exchange. d. economic adaptation. e. trade feedback. Answer: b Page: 172 Other Locations: W Rationale: Key term definition—countertrade 379 7-4 COUNTERTRADE APPLICATION The Tahitian pearl market might never have existed were it not for Salvador Assael, “pearl king” of the South Seas. Assael got into the pearl business at the end of World War II. Tahiti had thousands of Swiss watches and suddenly had no GIs to sell them to. Assael observed that the Japanese were desperate for watches but had no cash and that the Japanese still had a pearl industry. So Assael oversaw the swapping of for watches pearls, which were then sold to the Australian and U.S. markets. This international barter is an example of: a. predatory pricing. b. a countertrade. c. cross-cultural exchange. d. economic adaptation. e. trade feedback. Answer: b Page: 172 Rationale: Countertrade is using barter rather than money in making international sales. In this case, exchanging watches for pearls. 7-5 COUNTERTRADE APPLICATION When the Malaysian government exchanged 20, 000 tons of rice for an equivalent amount of Philippine corn, this was an example of: a. predatory pricing....
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This note was uploaded on 03/11/2012 for the course MKTG 351 taught by Professor Benedicktus during the Fall '08 term at CSU Fullerton.
- Fall '08